FTX Exchange Collapse and Bankruptcy: Difference between revisions

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(Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/ftxexchangecollapseandbankruptcy.php}} {{Unattributed Sources}} thumb|FTX Exchange CollageFTX Trading Ltd., once a major cryptocurrency exchange firm valued at around $40 billion, collapsed over a 10-day period in November 2022. The catalyst for its fall was a report by CoinDesk on November 2, which revealed that Alameda Research, a quantitative trading firm also run by Sa...")
 
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{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/ftxexchangecollapseandbankruptcy.php}}
{{Case Study Under Construction}}{{Unattributed Sources}}
{{Unattributed Sources}}


[[File:Ftxcollapse.jpg|thumb|FTX Exchange Collage]]FTX Trading Ltd., once a major cryptocurrency exchange firm valued at around $40 billion, collapsed over a 10-day period in November 2022. The catalyst for its fall was a report by CoinDesk on November 2, which revealed that Alameda Research, a quantitative trading firm also run by Sam Bankman-Fried, held a $5 billion position in FTT, the native token of FTX. This disclosure raised concerns about undisclosed leverage and solvency across Bankman-Fried's companies. Sam Bankman-Fried, the former crypto billionaire at the center of this scandal, is now facing the largest-ever pretrial bond, set at $250 million.
[[File:Ftxcollapse.jpg|thumb|FTX Exchange Collage]]FTX Trading Ltd., once a major cryptocurrency exchange firm valued at around $40 billion, collapsed over a 10-day period in November 2022. The catalyst for its fall was a report by CoinDesk on November 2, which revealed that Alameda Research, a quantitative trading firm also run by Sam Bankman-Fried, held a $5 billion position in FTT, the native token of FTX. This disclosure raised concerns about undisclosed leverage and solvency across Bankman-Fried's companies. Sam Bankman-Fried, the former crypto billionaire at the center of this scandal, is now facing the largest-ever pretrial bond, set at $250 million.


This is a global/international case not involving a specific country.<ref name="hsakatradestwitter-11672" /><ref name="rookiexbttwitter-11673" /><ref name="zenithowltwitter-11674" /><ref name="ignaciomedium-11675" /><ref name="reddit-11676" /><ref name="insights-11677" /><ref name="cnbc-11678" /><ref name="reddit-11679" /><ref name="visualcapitalist-11680" /><ref name="youtube-11681" /><ref name="youtube-11682" /><ref name="youtube-11683" /><ref name="youtube-11684" /><ref name="youtube-11685" /><ref name="investmentweek-11686" /><ref name="youtube-11687" /><ref name="fullycrypto-11688" /><ref name="unusualwhalestwitter-11689" /><ref name="crypto247medium-11690" /><ref name="decrypt-11691" /><ref name="youtube-11692" /><ref name="youtube-11693" /><ref name="reddit-11694" /><ref name="youtube-11695" /><ref name="zerohedge-11696" /><ref name="vice-11697" /><ref name="czbinancetwitter-11698" /><ref name="bbc-11699" /><ref name="cnbc-11700" /><ref name="nytimes-11701" /><ref name="coffeebreakyttwitter-11702" /><ref name="rektnews-11703" /><ref name="scbgovbstwitter-11704" /><ref name="reddit-11705" /><ref name="cointelegraph-11706" /><ref name="youtube-11707" /><ref name="reddit-11708" /><ref name="youtube-11709" /><ref name="reptomemmertwitter-11710" /><ref name="autismcapitaltwitter-11711" /><ref name="youtube-11712" /><ref name="youtube-11713" /><ref name="youtube-11714" /><ref name="youtube-11715" /><ref name="reddit-11716" /><ref name="youtube-11717" /><ref name="reuters-11718" /><ref name="investopedia-11719" /><ref name="forbes-11720" /><ref name="vectorseek-11721" /><ref name="cryptonewsflash-11722" /><ref name="youtube-11723" /><ref name="forbes-11724" /><ref name="coindesk-11725" />
This is a global/international case not involving a specific country.<ref name="hsakatradestwitter-11672" /><ref name="rookiexbttwitter-11673" /><ref name="zenithowltwitter-11674" /><ref name="ignaciomedium-11675" /><ref name="reddit-11676" /><ref name="insights-11677" /><ref name="cnbc-11678" /><ref name="reddit-11679" /><ref name="visualcapitalist-11680" /><ref name="youtube-11681" /><ref name="youtube-11682" /><ref name="youtube-11683" /><ref name="youtube-11684" /><ref name="youtube-11685" /><ref name="investmentweek-11686" /><ref name="youtube-11687" /><ref name="fullycrypto-11688" /><ref name="unusualwhalestwitter-11689" /><ref name="crypto247medium-11690" /><ref name="decrypt-11691" /><ref name="youtube-11692" /><ref name="youtube-11693" /><ref name="reddit-11694" /><ref name="youtube-11695" /><ref name="zerohedge-11696" /><ref name="vice-11697" /><ref name="czbinancetwitter-11698" /><ref name="bbc-11699" /><ref name="cnbc-11700" /><ref name="nytimes-11701" /><ref name="coffeebreakyttwitter-11702" /><ref name="rektnews-11703" /><ref name="scbgovbstwitter-11704" /><ref name="reddit-11705" /><ref name="cointelegraph-11706" /><ref name="youtube-11707" /><ref name="reddit-11708" /><ref name="youtube-11709" /><ref name="reptomemmertwitter-11710" /><ref name="autismcapitaltwitter-11711" /><ref name="youtube-11712" /><ref name="youtube-11713" /><ref name="youtube-11714" /><ref name="youtube-11715" /><ref name="reddit-11716" /><ref name="youtube-11717" /><ref name="reuters-11718" /><ref name="investopedia-11719" /><ref name="forbes-11720" /><ref name="cryptonewsflash-11722" />


== About FTX ==
== About FTX ==
"FTX Trading Ltd. was one of the largest cryptocurrency exchange firms, known for its specialty in buying and selling crypto derivatives, and once valued at about $40 billion"
"FTX Trading Ltd. was one of the largest cryptocurrency exchange firms, known for its specialty in buying and selling crypto derivatives, and once valued at about $40 billion"


"FTX’s collapse took place over a 10-day period in November 2022. The catalyst was a Nov. 2 scoop by crypto news site CoinDesk that revealed that Alameda Research, the quantitative trading firm also run by Bankman-Fried, held a position valued at $5 billion in FTT, the native token of FTX.


The report disclosed that Alameda’s investment foundation was also in FTT, the token that its sister company had invented, not a fiat currency or other cryptocurrency. That prompted concern across the cryptocurrency industry regarding Bankman-Fried’s companies’ undisclosed leverage and solvency."
Investors to FTX included Temasak, Paradigm, the Ontario Teachers’ Pension Plan Board, and NEA<ref name="forbes-11724" />.
 
"In addition to the $250 million package, which prosecutors called “the largest-ever pretrial bond,” the former crypto billionaire would also be required to wear an electronic monitoring bracelet, submit to mental health counseling and restrict himself travel within and between the Northern District of California and the Southern & Eastern Districts of New York.
 
Judge Gabriel Gorenstein said Bankman-Fried would require “strict” supervision following his release to his parents’ home in California.
 
His parents, both Stanford Law professors, were present in the courtroom. Bankman-Fried was flanked by two U.S. marshals, dressed in a blue suit and brown shoes. Bankman-Fried entered in ankle shackles as well, but traded them for his ankle monitor while in the courtroom."
 
"Bankman-Fried was the heart of “a fraud of epic proportions,” Assistant U.S. Attorney Nicolas Roos told the court. But he voluntarily returned to the United States, has no history of flight and has significantly reduced financial assets, Roos said.
 
Bankman-Fried had previously claimed that he was down to a mere $100,000, a steep fall from grace for a man who was once at the head of a $32 billion crypto empire."


"Bankman-Fried’s bail dwarfs other federal white-collar bonds. Bernie Madoff posted a $10 million bond while awaiting trial on his multibillion-dollar Ponzi scheme. Jeff Skilling, former Enron CEO, posted a $5 million bond, while Elizabeth Holmes, Theranos founder, posted a scant $500,000."
<ref name="vectorseek-11721" />
 
This is a global/international case not involving a specific country.
 
The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.
 
Include:
 
* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.
 
Don't Include:
* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.


== The Reality ==
== The Reality ==
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== What Happened ==
== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
FTX’s collapse took place over a 10-day period in November 2022.
{| class="wikitable"
{| class="wikitable"
|+Key Event Timeline - FTX Exchange Collapse and Bankruptcy
|+Key Event Timeline - FTX Exchange Collapse and Bankruptcy
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!Event
!Event
!Description
!Description
|-
|January 31st, 2022 7:42:00 AM MST
|FTX Funds Raised
|FTX Trading, a major cryptocurrency exchange, raises $400 million in its third funding round in six months, increasing its valuation to $32 billion. The funding round saw participation from existing investors, including Temasak, Paradigm, the Ontario Teachers’ Pension Plan Board, and NEA. This comes shortly after FTX U.S., the independently operated sister exchange, also raised $400 million. FTX CEO Sam Bankman-Fried stated that this funding will support expansion into new regions and enhance their offerings. FTX has grown rapidly since its launch two years ago, with a 60% increase in its user base and an average daily trading volume of approximately $14 billion. Despite the recent crypto market downturn, Bankman-Fried expressed optimism, suggesting that the selloff isn't indicative of a long-term "crypto winter." Prior to the funding, Sam Bankman-Fried is worth an estimated $17.1b, the world's richest 29 year old<ref name="forbes-11724" />.
|-
|November 2nd, 2022
|CoinDesk Report Catalyst
|"The catalyst was a Nov. 2 scoop by crypto news site CoinDesk that revealed that Alameda Research, the quantitative trading firm also run by Bankman-Fried, held a position valued at $5 billion in FTT, the native token of FTX.
The report disclosed that Alameda’s investment foundation was also in FTT, the token that its sister company had invented, not a fiat currency or other cryptocurrency. That prompted concern across the cryptocurrency industry regarding Bankman-Fried’s companies’ undisclosed leverage and solvency."
|-
|-
|November 6th, 2022 11:00:00 AM MST
|November 6th, 2022 11:00:00 AM MST
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|Crypto Liquidation
|Crypto Liquidation
|Preparing for liquidation of assets held by FTX.
|Preparing for liquidation of assets held by FTX.
|-
|September 13th, 2023 11:41:00 AM MDT
|FTX Able To Use Assets
|CoinDesk reports that a judge in the U.S. Bankruptcy Court for the District of Delaware has ruled that crypto exchange FTX can sell, invest, stake, and hedge its crypto holdings to pay back creditors. The judge approved the motion and overruled objections, allowing FTX to use its crypto assets worth over $3.4 billion for these purposes. FTX had submitted a request for permission to engage in these activities in August, with the goal of limiting potential downside risk and generating low-risk returns on idle digital assets. The exchange also sought to hire Mike Novogratz of Galaxy Digital as an adviser. FTX recently disclosed holdings of $1.16 billion in Solana (SOL) and $560 million in Bitcoin (BTC), along with lesser-known illiquid tokens<ref name="coindesk-11725" />.<ref name="cryptonewsflash-11722" />
|-
|September 14th, 2023 7:44:52 AM MDT
|Traders Impacted By FTX Liquidation
|Video mentioning FTX liquidation and impact on the market<ref name="youtube-11723" />.
|}
|}


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Bankman-Fried, who voluntarily returned to the U.S. and has significantly reduced financial assets, was described by prosecutors as the mastermind behind "a fraud of epic proportions." Despite once leading a $32 billion crypto empire, he claimed to have only $100,000 left. Comparatively, his bail amount far exceeds those set for other high-profile white-collar defendants like Bernie Madoff, Jeff Skilling, and Elizabeth Holmes.
Bankman-Fried, who voluntarily returned to the U.S. and has significantly reduced financial assets, was described by prosecutors as the mastermind behind "a fraud of epic proportions." Despite once leading a $32 billion crypto empire, he claimed to have only $100,000 left. Comparatively, his bail amount far exceeds those set for other high-profile white-collar defendants like Bernie Madoff, Jeff Skilling, and Elizabeth Holmes.
"In addition to the $250 million package, which prosecutors called “the largest-ever pretrial bond,” the former crypto billionaire would also be required to wear an electronic monitoring bracelet, submit to mental health counseling and restrict himself [to] travel within and between the Northern District of California and the Southern & Eastern Districts of New York.
Judge Gabriel Gorenstein said Bankman-Fried would require “strict” supervision following his release to his parents’ home in California.
His parents, both Stanford Law professors, were present in the courtroom. Bankman-Fried was flanked by two U.S. marshals, dressed in a blue suit and brown shoes. Bankman-Fried entered in ankle shackles as well, but traded them for his ankle monitor while in the courtroom."
"Bankman-Fried was the heart of “a fraud of epic proportions,” Assistant U.S. Attorney Nicolas Roos told the court. But he voluntarily returned to the United States, has no history of flight and has significantly reduced financial assets, Roos said.
Bankman-Fried had previously claimed that he was down to a mere $100,000, a steep fall from grace for a man who was once at the head of a $32 billion crypto empire."
"Bankman-Fried’s bail dwarfs other federal white-collar bonds. Bernie Madoff posted a $10 million bond while awaiting trial on his multibillion-dollar Ponzi scheme. Jeff Skilling, former Enron CEO, posted a $5 million bond, while Elizabeth Holmes, Theranos founder, posted a scant $500,000."


== Total Amount Recovered ==
== Total Amount Recovered ==
The total amount recovered is unknown.
The total amount recovered is still being determined. A recent court ruling has allowed FTX to start selling and staking assets in order to repay creditors<ref name="coindesk-11725" />.
 
== Ongoing Developments ==


What funds were recovered? What funds were reimbursed for those affected users?


== Ongoing Developments ==
The sale of assets is still ongoing<ref name="coindesk-11725" />.
What parts of this case are still remaining to be concluded?
 
=== Liquidation Impacts On Market ===
<ref name="forbes-11724" />
== Individual Prevention Policies ==
== Individual Prevention Policies ==
{{Prevention:Individuals:Placeholder}}
{{Prevention:Individuals:Placeholder}}
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== References ==
== References ==
<references><ref name="hsakatradestwitter-11672">[https://mobile.twitter.com/HsakaTrades/status/1590354614460862465 https://mobile.twitter.com/HsakaTrades/status/1590354614460862465] (Nov 8, 2022)</ref>
<references>
 
<ref name="hsakatradestwitter-11672">https://mobile.twitter.com/HsakaTrades/status/1590354614460862465 (Nov 8, 2022)</ref>
<ref name="rookiexbttwitter-11673">[https://mobile.twitter.com/RookieXBT/status/1590469179865731073 https://mobile.twitter.com/RookieXBT/status/1590469179865731073] (Nov 8, 2022)</ref>
<ref name="rookiexbttwitter-11673">https://mobile.twitter.com/RookieXBT/status/1590469179865731073 (Nov 8, 2022)</ref>
 
<ref name="zenithowltwitter-11674">[https://twitter.com/zenith_owl/status/1591270486558003200 @zenith_owl Twitter] (Nov 12, 2022)</ref>
<ref name="zenithowltwitter-11674">[https://twitter.com/zenith_owl/status/1591270486558003200 @zenith_owl Twitter] (Nov 12, 2022)</ref>
 
<ref name="ignaciomedium-11675">https://medium.com/@ignacio.de.gregorio.noblejas/binance-ftx-war-ends-in-collapse-1488a806fff5 (Nov 14, 2022)</ref>
<ref name="ignaciomedium-11675">[https://medium.com/@ignacio.de.gregorio.noblejas/binance-ftx-war-ends-in-collapse-1488a806fff5 https://medium.com/@ignacio.de.gregorio.noblejas/binance-ftx-war-ends-in-collapse-1488a806fff5] (Nov 14, 2022)</ref>
 
<ref name="reddit-11676">[https://www.reddit.com/r/Bitcoin/comments/yuyx19/the_biggest_exodus_of_bitcoin_ever_to_cold/ Reddit - Dive into anything] (Nov 14, 2022)</ref>
<ref name="reddit-11676">[https://www.reddit.com/r/Bitcoin/comments/yuyx19/the_biggest_exodus_of_bitcoin_ever_to_cold/ Reddit - Dive into anything] (Nov 14, 2022)</ref>
<ref name="insights-11677">[https://insights.glassnode.com/the-week-onchain-week-46-2022/ The Fall of FTX] (Nov 15, 2022)</ref>
<ref name="insights-11677">[https://insights.glassnode.com/the-week-onchain-week-46-2022/ The Fall of FTX] (Nov 15, 2022)</ref>
<ref name="cnbc-11678">[https://www.cnbc.com/2022/11/14/former-ftx-ceo-sam-bankman-fried-loses-lobbyists-to-washington.html Former FTX CEO Sam Bankman-Fried loses Washington lobbyists] (Nov 17, 2022)</ref>
<ref name="cnbc-11678">[https://www.cnbc.com/2022/11/14/former-ftx-ceo-sam-bankman-fried-loses-lobbyists-to-washington.html Former FTX CEO Sam Bankman-Fried loses Washington lobbyists] (Nov 17, 2022)</ref>
<ref name="reddit-11679">[https://www.reddit.com/r/Bitcoin/comments/yvw300/there_are_225_million_bitcoin_left_on_exchanges/ Reddit - Dive into anything] (Nov 24, 2022)</ref>
<ref name="reddit-11679">[https://www.reddit.com/r/Bitcoin/comments/yvw300/there_are_225_million_bitcoin_left_on_exchanges/ Reddit - Dive into anything] (Nov 24, 2022)</ref>
<ref name="visualcapitalist-11680">[https://www.visualcapitalist.com/ftx-leaked-balance-sheet-visualized/ Visualized: FTX's Leaked Balance Sheet] (Nov 29, 2022)</ref>
<ref name="visualcapitalist-11680">[https://www.visualcapitalist.com/ftx-leaked-balance-sheet-visualized/ Visualized: FTX's Leaked Balance Sheet] (Nov 29, 2022)</ref>
<ref name="youtube-11681">[https://www.youtube.com/watch?v=0rL35_WV3lE Talking to Sam Bankman Fried - YouTube] (Nov 30, 2022)</ref>
<ref name="youtube-11681">[https://www.youtube.com/watch?v=0rL35_WV3lE Talking to Sam Bankman Fried - YouTube] (Nov 30, 2022)</ref>
<ref name="youtube-11682">[https://www.youtube.com/watch?v=l9hPQ_FZw7E I didn't ever try to commit fraud on anyone: Sam Bankman-Fried - YouTube] (Nov 30, 2022)</ref>
<ref name="youtube-11682">[https://www.youtube.com/watch?v=l9hPQ_FZw7E I didn't ever try to commit fraud on anyone: Sam Bankman-Fried - YouTube] (Nov 30, 2022)</ref>
<ref name="youtube-11683">[https://www.youtube.com/watch?v=oH9Mvo7V_rA SBF Explains Losses! - YouTube] (Dec 1, 2022)</ref>
<ref name="youtube-11683">[https://www.youtube.com/watch?v=oH9Mvo7V_rA SBF Explains Losses! - YouTube] (Dec 1, 2022)</ref>
<ref name="youtube-11684">[https://www.youtube.com/watch?v=GtXm1U96nOA Sorry You’re Bankrupt - YouTube] (Dec 1, 2022)</ref>
<ref name="youtube-11684">[https://www.youtube.com/watch?v=GtXm1U96nOA Sorry You’re Bankrupt - YouTube] (Dec 1, 2022)</ref>
<ref name="youtube-11685">[https://www.youtube.com/watch?v=yJn6IiYid6A FTX Disaster - 7 Unbelievable Bankruptcy Discoveries - YouTube] (Dec 5, 2022)</ref>
<ref name="youtube-11685">[https://www.youtube.com/watch?v=yJn6IiYid6A FTX Disaster - 7 Unbelievable Bankruptcy Discoveries - YouTube] (Dec 5, 2022)</ref>
<ref name="investmentweek-11686">[https://www.investmentweek.co.uk/news/4061227/uk-treasury-finalises-plans-crypto-regulation-amid-ftx-downfall-reports UK Treasury finalises plans for crypto regulation amid FTX downfall - reports] (Dec 9, 2022)</ref>
<ref name="investmentweek-11686">[https://www.investmentweek.co.uk/news/4061227/uk-treasury-finalises-plans-crypto-regulation-amid-ftx-downfall-reports UK Treasury finalises plans for crypto regulation amid FTX downfall - reports] (Dec 9, 2022)</ref>
<ref name="youtube-11687">[https://www.youtube.com/watch?v=gLyNER3z4Rg You Got Robbed | FTX and BlockFI Crash - YouTube] (Dec 11, 2022)</ref>
<ref name="youtube-11687">[https://www.youtube.com/watch?v=gLyNER3z4Rg You Got Robbed | FTX and BlockFI Crash - YouTube] (Dec 11, 2022)</ref>
<ref name="fullycrypto-11688">[https://fullycrypto.com/sam-bankman-fried-applauded-after-surreal-interview Sam Bankman-Fried Applauded After Surreal Interview] (Dec 12, 2022)</ref>
<ref name="fullycrypto-11688">[https://fullycrypto.com/sam-bankman-fried-applauded-after-surreal-interview Sam Bankman-Fried Applauded After Surreal Interview] (Dec 12, 2022)</ref>
<ref name="unusualwhalestwitter-11689">[https://twitter.com/unusual_whales/status/1602783723673378816 @unusual_whales Twitter] (Dec 13, 2022)</ref>
<ref name="unusualwhalestwitter-11689">[https://twitter.com/unusual_whales/status/1602783723673378816 @unusual_whales Twitter] (Dec 13, 2022)</ref>
<ref name="crypto247medium-11690">[https://medium.com/crypto-24-7/projects-benefited-by-ftx-collapse-3583bf9d3f02 Projects Benefited By Ftx Collapse] (Dec 15, 2022)</ref>
<ref name="crypto247medium-11690">[https://medium.com/crypto-24-7/projects-benefited-by-ftx-collapse-3583bf9d3f02 Projects Benefited By Ftx Collapse] (Dec 15, 2022)</ref>
<ref name="decrypt-11691">[https://decrypt.co/117374/sam-bankman-fried-in-good-spirits-in-rat-infested-prison Sam Bankman-Fried in 'Good Spirits' in Rat-Infested Prison - Decrypt] (Dec 15, 2022)</ref>
<ref name="decrypt-11691">[https://decrypt.co/117374/sam-bankman-fried-in-good-spirits-in-rat-infested-prison Sam Bankman-Fried in 'Good Spirits' in Rat-Infested Prison - Decrypt] (Dec 15, 2022)</ref>
<ref name="youtube-11692">[https://www.youtube.com/watch?v=4o_jPzBZSIo I Accidentally Got SBF To Admit to Fraud - YouTube] (Dec 16, 2022)</ref>
<ref name="youtube-11692">[https://www.youtube.com/watch?v=4o_jPzBZSIo I Accidentally Got SBF To Admit to Fraud - YouTube] (Dec 16, 2022)</ref>
<ref name="youtube-11693">[https://www.youtube.com/watch?v=WqDvsbElFXg FTX Was (And Is) A Complete Mess - YouTube] (Dec 18, 2022)</ref>
<ref name="youtube-11693">[https://www.youtube.com/watch?v=WqDvsbElFXg FTX Was (And Is) A Complete Mess - YouTube] (Dec 18, 2022)</ref>
<ref name="reddit-11694">[https://www.reddit.com/r/CryptoCurrency/comments/zstec5/ftx_founder_sam_bankmanfried_to_be_released_on/ Reddit - Dive into anything] (Dec 22, 2022)</ref>
<ref name="reddit-11694">[https://www.reddit.com/r/CryptoCurrency/comments/zstec5/ftx_founder_sam_bankmanfried_to_be_released_on/ Reddit - Dive into anything] (Dec 22, 2022)</ref>
<ref name="youtube-11695">[https://www.youtube.com/watch?v=zqIa6ccn3Bw House Financial Services Committee holds a hearing to investigate FTX collapse — 12/13/22 - YouTube] (Dec 24, 2022)</ref>
<ref name="youtube-11695">[https://www.youtube.com/watch?v=zqIa6ccn3Bw House Financial Services Committee holds a hearing to investigate FTX collapse — 12/13/22 - YouTube] (Dec 24, 2022)</ref>
<ref name="zerohedge-11696">[https://www.zerohedge.com/crypto/alameda-wallets-funnel-over-17-million-crypto-mixers-overnight Alameda Wallets Funnel Over $1.7 Million Via Crypto-Mixers Overnight | ZeroHedge] (Dec 29, 2022)</ref>
<ref name="zerohedge-11696">[https://www.zerohedge.com/crypto/alameda-wallets-funnel-over-17-million-crypto-mixers-overnight Alameda Wallets Funnel Over $1.7 Million Via Crypto-Mixers Overnight | ZeroHedge] (Dec 29, 2022)</ref>
<ref name="vice-11697">[https://www.vice.com/en/article/v7v8qd/sam-bankman-fried-arrested-in-the-bahamas-at-request-of-us-government Sam Bankman-Fried Arrested Immediately After Saying He Wouldn't Be Arrested] (Jan 11, 2023)</ref>
<ref name="vice-11697">[https://www.vice.com/en/article/v7v8qd/sam-bankman-fried-arrested-in-the-bahamas-at-request-of-us-government Sam Bankman-Fried Arrested Immediately After Saying He Wouldn't Be Arrested] (Jan 11, 2023)</ref>
<ref name="czbinancetwitter-11698">[https://twitter.com/cz_binance/status/1590351182513729544 @cz_binance Twitter] (Sep 12, 2023)</ref>
<ref name="czbinancetwitter-11698">[https://twitter.com/cz_binance/status/1590351182513729544 @cz_binance Twitter] (Sep 12, 2023)</ref>
<ref name="bbc-11699">[https://www.bbc.com/news/business-64245044 FTX: Collapsed crypto giant recovers over $5bn of assets - BBC News] (Sep 12, 2023)</ref>
<ref name="bbc-11699">[https://www.bbc.com/news/business-64245044 FTX: Collapsed crypto giant recovers over $5bn of assets - BBC News] (Sep 12, 2023)</ref>
<ref name="cnbc-11700">[https://www.cnbc.com/2022/12/22/ftx-founder-sam-bankman-fried-to-be-released-on-250-million-bail.html FTX founder Sam Bankman-Fried to be released on $250 million bail, will live with his parents] (Sep 14, 2023)</ref>
<ref name="cnbc-11700">[https://www.cnbc.com/2022/12/22/ftx-founder-sam-bankman-fried-to-be-released-on-250-million-bail.html FTX founder Sam Bankman-Fried to be released on $250 million bail, will live with his parents] (Sep 14, 2023)</ref>
<ref name="nytimes-11701">[https://www.nytimes.com/2022/11/29/technology/sam-bankman-fried-ftx-bankruptcy.html ‘No Cooperation’: How Sam Bankman-Fried Tried to Cling to FTX - The New York Times] (Sep 14, 2023)</ref>
<ref name="nytimes-11701">[https://www.nytimes.com/2022/11/29/technology/sam-bankman-fried-ftx-bankruptcy.html ‘No Cooperation’: How Sam Bankman-Fried Tried to Cling to FTX - The New York Times] (Sep 14, 2023)</ref>
<ref name="coffeebreakyttwitter-11702">[https://twitter.com/coffeebreak_YT/status/1597619031300710400 @coffeebreak_YT Twitter] (Sep 14, 2023)</ref>
<ref name="coffeebreakyttwitter-11702">[https://twitter.com/coffeebreak_YT/status/1597619031300710400 @coffeebreak_YT Twitter] (Sep 14, 2023)</ref>
<ref name="rektnews-11703">[https://rekt.news/sbf-mask-off/ Rekt - SBF - MASK OFF] (Sep 14, 2023)</ref>
<ref name="rektnews-11703">[https://rekt.news/sbf-mask-off/ Rekt - SBF - MASK OFF] (Sep 14, 2023)</ref>
<ref name="scbgovbstwitter-11704">[https://twitter.com/SCBgov_bs/status/1593395137786171393 @SCBgov_bs Twitter] (Sep 14, 2023)</ref>
<ref name="scbgovbstwitter-11704">[https://twitter.com/SCBgov_bs/status/1593395137786171393 @SCBgov_bs Twitter] (Sep 14, 2023)</ref>
<ref name="reddit-11705">[https://www.reddit.com/r/CryptoCurrency/comments/ytn3lg/sam_bankmanfried_and_two_former_ftx_associates/ Reddit - Dive into anything] (Sep 14, 2023)</ref>
<ref name="reddit-11705">[https://www.reddit.com/r/CryptoCurrency/comments/ytn3lg/sam_bankmanfried_and_two_former_ftx_associates/ Reddit - Dive into anything] (Sep 14, 2023)</ref>
<ref name="cointelegraph-11706">[https://cointelegraph.com/news/us-senators-commit-to-advancing-crypto-bill-despite-ftx-collapse US senators commit to advancing crypto bill despite FTX collapse] (Sep 14, 2023)</ref>
<ref name="cointelegraph-11706">[https://cointelegraph.com/news/us-senators-commit-to-advancing-crypto-bill-despite-ftx-collapse US senators commit to advancing crypto bill despite FTX collapse] (Sep 14, 2023)</ref>
<ref name="youtube-11707">[https://www.youtube.com/watch?v=4q_kUe1Vhwo Is SBF a 'pawn' and 'useful idiot' in a bigger plot to take down crypto industry? - Mark Yusko - YouTube] (Sep 14, 2023)</ref>
<ref name="youtube-11707">[https://www.youtube.com/watch?v=4q_kUe1Vhwo Is SBF a 'pawn' and 'useful idiot' in a bigger plot to take down crypto industry? - Mark Yusko - YouTube] (Sep 14, 2023)</ref>
<ref name="reddit-11708">[https://www.reddit.com/r/CryptoCurrency/comments/yo4vf7/serious_ftx_rumors_securing_your_crypto/ Reddit - Dive into anything] (Sep 14, 2023)</ref>
<ref name="reddit-11708">[https://www.reddit.com/r/CryptoCurrency/comments/yo4vf7/serious_ftx_rumors_securing_your_crypto/ Reddit - Dive into anything] (Sep 14, 2023)</ref>
<ref name="youtube-11709">[https://www.youtube.com/watch?v=AfmBdKoqq1o I Accidentally Interviewed SBF And He Hated It - YouTube] (Sep 14, 2023)</ref>
<ref name="youtube-11709">[https://www.youtube.com/watch?v=AfmBdKoqq1o I Accidentally Interviewed SBF And He Hated It - YouTube] (Sep 14, 2023)</ref>
<ref name="reptomemmertwitter-11710">[https://twitter.com/RepTomEmmer/status/1602678073261948930 @RepTomEmmer Twitter] (Sep 14, 2023)</ref>
<ref name="reptomemmertwitter-11710">[https://twitter.com/RepTomEmmer/status/1602678073261948930 @RepTomEmmer Twitter] (Sep 14, 2023)</ref>
<ref name="autismcapitaltwitter-11711">[https://twitter.com/AutismCapital/status/1602789035017048064 @AutismCapital Twitter] (Sep 14, 2023)</ref>
<ref name="autismcapitaltwitter-11711">[https://twitter.com/AutismCapital/status/1602789035017048064 @AutismCapital Twitter] (Sep 14, 2023)</ref>
<ref name="youtube-11712">[https://www.youtube.com/watch?v=JT8f0n6E79g Sam Bankman Fried Was Arrested - YouTube] (Sep 14, 2023)</ref>
<ref name="youtube-11712">[https://www.youtube.com/watch?v=JT8f0n6E79g Sam Bankman Fried Was Arrested - YouTube] (Sep 14, 2023)</ref>
<ref name="youtube-11713">[https://www.youtube.com/watch?v=FsU77YNLV_c - YouTube] (Sep 14, 2023)</ref>
<ref name="youtube-11713">[https://www.youtube.com/watch?v=FsU77YNLV_c - YouTube] (Sep 14, 2023)</ref>
<ref name="youtube-11714">[https://www.youtube.com/watch?v=Rboxe1ZBVkU Caroline Ellison (CEO of Alameda) has been found!  - YouTube] (Sep 14, 2023)</ref>
<ref name="youtube-11714">[https://www.youtube.com/watch?v=Rboxe1ZBVkU Caroline Ellison (CEO of Alameda) has been found!  - YouTube] (Sep 14, 2023)</ref>
<ref name="youtube-11715">[https://www.youtube.com/watch?v=WrCFj71jz7U Kevin O'Leary Just Shocked Everyone With His Response To The FTX Collapse - YouTube] (Sep 14, 2023)</ref>
<ref name="youtube-11715">[https://www.youtube.com/watch?v=WrCFj71jz7U Kevin O'Leary Just Shocked Everyone With His Response To The FTX Collapse - YouTube] (Sep 14, 2023)</ref>
 
<ref name="reddit-11716">[https://www.reddit.com/r/CryptoCurrency/comments/zs8zrq/sec_charges_caroline_ellison_and_gary_wang_with/ SEC Charges Caroline Ellison and Gary Wang with Defrauding Investors in Crypto Asset Trading Platform FTX - Reddit] (Sep 14, 2023)</ref>
<ref name="reddit-11716">[https://www.reddit.com/r/CryptoCurrency/comments/zs8zrq/sec_charges_caroline_ellison_and_gary_wang_with/ Reddit - Dive into anything] (Sep 14, 2023)</ref>
 
<ref name="youtube-11717">[https://www.youtube.com/watch?v=7WOHJ_8sMaU FTX Is About To Liquidate $3.4 BILLION Of Crypto! (Alts Are In Trouble) - YouTube] (Sep 14, 2023)</ref>
<ref name="youtube-11717">[https://www.youtube.com/watch?v=7WOHJ_8sMaU FTX Is About To Liquidate $3.4 BILLION Of Crypto! (Alts Are In Trouble) - YouTube] (Sep 14, 2023)</ref>
 
<ref name="reuters-11718">[https://www.reuters.com/technology/ftx-gets-court-approval-sell-crypto-assets-2023-09-13/ FTX gets court approval to sell crypto assets - Reuters] (Sep 14, 2023)</ref>
<ref name="reuters-11718">[https://www.reuters.com/technology/ftx-gets-court-approval-sell-crypto-assets-2023-09-13/ FTX gets court approval to sell crypto assets | Reuters] (Sep 14, 2023)</ref>
<ref name="investopedia-11719">[https://www.investopedia.com/what-went-wrong-with-ftx-6828447 The Collapse of FTX: What Went Wrong With the Crypto Exchange? - Investopedia] (Sep 14, 2023)</ref>
 
<ref name="forbes-11720">[https://www.forbes.com/sites/darreonnadavis/2023/06/02/what-happened-to-ftx-the-crypto-exchange-funds-collapse-explained/?sh=b5c9d413cb7b What Happened To FTX? The Crypto Exchange Fund’s Collapse Explained. - Forbes] (Sep 14, 2023)</ref>
<ref name="investopedia-11719">[https://www.investopedia.com/what-went-wrong-with-ftx-6828447 The Collapse of FTX: What Went Wrong With the Crypto Exchange?] (Sep 14, 2023)</ref>
<ref name="vectorseek-11721">[https://vectorseek.com/vector_logo/ftx-logo-vector/ FTX Logo - VectorSeek] (Sep 14, 2023)</ref>
 
<ref name="cryptonewsflash-11722">[https://www.crypto-news-flash.com/billion-dollar-crypto-exchange-ftx-gains-regulatory-nod-to-offload-3-4-billion-in-bitcoin-ethereum-and-ripple-xrp-no-market-impact-foreseen-dispelling-fud/ Billion Dollar Crypto Exchange FTX Gains Regulatory Nod to Offload $3.4 Billion in Bitcoin, Ethereum, and Ripple (XRP): No Market Impact Foreseen - Dispelling FUD - Crypto News Flash] (Sep 14, 2023)</ref>
<ref name="forbes-11720">[https://www.forbes.com/sites/darreonnadavis/2023/06/02/what-happened-to-ftx-the-crypto-exchange-funds-collapse-explained/?sh=b5c9d413cb7b What Happened To FTX? The Crypto Exchange Fund’s Collapse Explained.] (Sep 14, 2023)</ref>
 
<ref name="vectorseek-11721">[https://vectorseek.com/vector_logo/ftx-logo-vector/ https://vectorseek.com/vector_logo/ftx-logo-vector/] (Sep 14, 2023)</ref>
 
<ref name="cryptonewsflash-11722">[https://www.crypto-news-flash.com/billion-dollar-crypto-exchange-ftx-gains-regulatory-nod-to-offload-3-4-billion-in-bitcoin-ethereum-and-ripple-xrp-no-market-impact-foreseen-dispelling-fud/ Billion Dollar Crypto Exchange FTX Gains Regulatory Nod to Offload $3.4 Billion in Bitcoin, Ethereum, and Ripple (XRP): No Market Impact Foreseen - Dispelling FUD] (Sep 14, 2023)</ref>
 
<ref name="youtube-11723">[https://www.youtube.com/watch?v=cYKIxF7LYYc Why The FTX Liquidation Will SURPRISE Everyone! - YouTube] (Sep 14, 2023)</ref>
<ref name="youtube-11723">[https://www.youtube.com/watch?v=cYKIxF7LYYc Why The FTX Liquidation Will SURPRISE Everyone! - YouTube] (Sep 14, 2023)</ref>
 
<ref name="forbes-11724">[https://www.forbes.com/sites/jonathanponciano/2022/01/31/billionaire-bankman-frieds-crypto-exchange-ftx-lands-32-billion-valuation-and-400-million-in-new-funding/?sh=7d89214b305f Billionaire Bankman-Fried’s Crypto Exchange FTX Lands $32 Billion Valuation And $400 Million In New Funding - Forbes] (Sep 14, 2023)</ref>
<ref name="forbes-11724">[https://www.forbes.com/sites/jonathanponciano/2022/01/31/billionaire-bankman-frieds-crypto-exchange-ftx-lands-32-billion-valuation-and-400-million-in-new-funding/?sh=7d89214b305f Billionaire Bankman-Fried’s Crypto Exchange FTX Lands $32 Billion Valuation And $400 Million In New Funding] (Sep 14, 2023)</ref>
<ref name="coindesk-11725">[https://www.coindesk.com/policy/2023/09/13/judge-allows-bankrupt-ftx-to-sell-its-crypto-holdings-including-btc-and-sol/ FTX Secures Court Approval to Sell Crypto Holdings, Including BTC and SOL - CoinDesk] (Sep 14, 2023)</ref>
 
</references>
<ref name="coindesk-11725">[https://www.coindesk.com/policy/2023/09/13/judge-allows-bankrupt-ftx-to-sell-its-crypto-holdings-including-btc-and-sol/ FTX Secures Court Approval to Sell Crypto Holdings, Including BTC and SOL] (Sep 14, 2023)</ref></references>

Revision as of 01:31, 17 September 2023

Notice: This page is a new case study and some aspects have not been fully researched. Some sections may be incomplete or reflect inaccuracies present in initial sources. Please check the References at the bottom for further information and perform your own additional assessment. Please feel free to contribute by adding any missing information or sources you come across. If you are new here, please read General Tutorial on Wikis or Anatomy of a Case Study for help getting started.

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FTX Exchange Collage

FTX Trading Ltd., once a major cryptocurrency exchange firm valued at around $40 billion, collapsed over a 10-day period in November 2022. The catalyst for its fall was a report by CoinDesk on November 2, which revealed that Alameda Research, a quantitative trading firm also run by Sam Bankman-Fried, held a $5 billion position in FTT, the native token of FTX. This disclosure raised concerns about undisclosed leverage and solvency across Bankman-Fried's companies. Sam Bankman-Fried, the former crypto billionaire at the center of this scandal, is now facing the largest-ever pretrial bond, set at $250 million.

This is a global/international case not involving a specific country.[1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][43][44][45][46][47][48][49][50]

About FTX

"FTX Trading Ltd. was one of the largest cryptocurrency exchange firms, known for its specialty in buying and selling crypto derivatives, and once valued at about $40 billion"


Investors to FTX included Temasak, Paradigm, the Ontario Teachers’ Pension Plan Board, and NEA[51].

[52]

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

  • When the service was actually started (if different than the "official story").
  • Who actually ran a service and their own personal history.
  • How the service was structured behind the scenes. (For example, there was no "trading bot".)
  • Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

FTX’s collapse took place over a 10-day period in November 2022.

Key Event Timeline - FTX Exchange Collapse and Bankruptcy
Date Event Description
January 31st, 2022 7:42:00 AM MST FTX Funds Raised FTX Trading, a major cryptocurrency exchange, raises $400 million in its third funding round in six months, increasing its valuation to $32 billion. The funding round saw participation from existing investors, including Temasak, Paradigm, the Ontario Teachers’ Pension Plan Board, and NEA. This comes shortly after FTX U.S., the independently operated sister exchange, also raised $400 million. FTX CEO Sam Bankman-Fried stated that this funding will support expansion into new regions and enhance their offerings. FTX has grown rapidly since its launch two years ago, with a 60% increase in its user base and an average daily trading volume of approximately $14 billion. Despite the recent crypto market downturn, Bankman-Fried expressed optimism, suggesting that the selloff isn't indicative of a long-term "crypto winter." Prior to the funding, Sam Bankman-Fried is worth an estimated $17.1b, the world's richest 29 year old[51].
November 2nd, 2022 CoinDesk Report Catalyst "The catalyst was a Nov. 2 scoop by crypto news site CoinDesk that revealed that Alameda Research, the quantitative trading firm also run by Bankman-Fried, held a position valued at $5 billion in FTT, the native token of FTX.

The report disclosed that Alameda’s investment foundation was also in FTT, the token that its sister company had invented, not a fiat currency or other cryptocurrency. That prompted concern across the cryptocurrency industry regarding Bankman-Fried’s companies’ undisclosed leverage and solvency."

November 6th, 2022 11:00:00 AM MST FTT Token Sale Rival exchange Binance sells all FTT tokens.
November 7th, 2022 Bailout Sought FTX announces liquidity crisis, seeks bailout from venture capitalists, then Binance.
November 8th, 2022 Binance Buy Out Binance says it will buy FTX’s non-U.S. business.
November 9th, 2022 Binance Walks Away Binance walks away from FTX acquisition after conducting due diligence.
November 10th, 2022 Bahamas Asset Freeze The Bahamas freezes assets of FTX’s subsidiary there; Bankman-Fried admits non-U.S. businesses’ liquidity crisis, says affiliate Alameda Research to wind down.
November 11th, 2022 CEO Step Down Bankman-Fried steps down as FTX CEO, is replaced by a court-appointed CEO with restructuring experience. FTX files for Chapter 11 bankruptcy protection.
November 12th, 2022 FTX Assets Hacked FTX reports an alleged hack, suspected to be up to $477 million, and moves its digital assets to cold storage for security reasons.
November 18th, 2022 Bahamas Asset Control The Bahamas takes control of FTX assets held there.
December 12th, 2022 Extradition Bankman-Fried is arrested by Bahamian authorities. He’s later extradited to the U.S.
December 22nd, 2022 Bail Bond Release Bankman-Fried is released on a $250 million bond, the largest in history, by a federal judge.
September 11th, 2023 5:00:06 PM MDT Crypto Liquidation Preparing for liquidation of assets held by FTX.
September 13th, 2023 11:41:00 AM MDT FTX Able To Use Assets CoinDesk reports that a judge in the U.S. Bankruptcy Court for the District of Delaware has ruled that crypto exchange FTX can sell, invest, stake, and hedge its crypto holdings to pay back creditors. The judge approved the motion and overruled objections, allowing FTX to use its crypto assets worth over $3.4 billion for these purposes. FTX had submitted a request for permission to engage in these activities in August, with the goal of limiting potential downside risk and generating low-risk returns on idle digital assets. The exchange also sought to hire Mike Novogratz of Galaxy Digital as an adviser. FTX recently disclosed holdings of $1.16 billion in Solana (SOL) and $560 million in Bitcoin (BTC), along with lesser-known illiquid tokens[53].[50]
September 14th, 2023 7:44:52 AM MDT Traders Impacted By FTX Liquidation Video mentioning FTX liquidation and impact on the market[54].

Technical Details

This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

Total Amount Lost

The total amount lost has been estimated at $8,000,000,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

Sam Bankman-Fried, the former crypto billionaire at the center of this scandal, is now facing the largest-ever pretrial bond, set at $250 million. The conditions for his release include wearing an electronic monitoring bracelet, undergoing mental health counseling, and restricting his travel to certain U.S. districts.

Bankman-Fried, who voluntarily returned to the U.S. and has significantly reduced financial assets, was described by prosecutors as the mastermind behind "a fraud of epic proportions." Despite once leading a $32 billion crypto empire, he claimed to have only $100,000 left. Comparatively, his bail amount far exceeds those set for other high-profile white-collar defendants like Bernie Madoff, Jeff Skilling, and Elizabeth Holmes.


"In addition to the $250 million package, which prosecutors called “the largest-ever pretrial bond,” the former crypto billionaire would also be required to wear an electronic monitoring bracelet, submit to mental health counseling and restrict himself [to] travel within and between the Northern District of California and the Southern & Eastern Districts of New York.

Judge Gabriel Gorenstein said Bankman-Fried would require “strict” supervision following his release to his parents’ home in California.

His parents, both Stanford Law professors, were present in the courtroom. Bankman-Fried was flanked by two U.S. marshals, dressed in a blue suit and brown shoes. Bankman-Fried entered in ankle shackles as well, but traded them for his ankle monitor while in the courtroom."

"Bankman-Fried was the heart of “a fraud of epic proportions,” Assistant U.S. Attorney Nicolas Roos told the court. But he voluntarily returned to the United States, has no history of flight and has significantly reduced financial assets, Roos said.

Bankman-Fried had previously claimed that he was down to a mere $100,000, a steep fall from grace for a man who was once at the head of a $32 billion crypto empire."

"Bankman-Fried’s bail dwarfs other federal white-collar bonds. Bernie Madoff posted a $10 million bond while awaiting trial on his multibillion-dollar Ponzi scheme. Jeff Skilling, former Enron CEO, posted a $5 million bond, while Elizabeth Holmes, Theranos founder, posted a scant $500,000."

Total Amount Recovered

The total amount recovered is still being determined. A recent court ruling has allowed FTX to start selling and staking assets in order to repay creditors[53].

Ongoing Developments

The sale of assets is still ongoing[53].

Liquidation Impacts On Market

[51]

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.

References

  1. ↑ https://mobile.twitter.com/HsakaTrades/status/1590354614460862465 (Nov 8, 2022)
  2. ↑ https://mobile.twitter.com/RookieXBT/status/1590469179865731073 (Nov 8, 2022)
  3. ↑ @zenith_owl Twitter (Nov 12, 2022)
  4. ↑ https://medium.com/@ignacio.de.gregorio.noblejas/binance-ftx-war-ends-in-collapse-1488a806fff5 (Nov 14, 2022)
  5. ↑ Reddit - Dive into anything (Nov 14, 2022)
  6. ↑ The Fall of FTX (Nov 15, 2022)
  7. ↑ Former FTX CEO Sam Bankman-Fried loses Washington lobbyists (Nov 17, 2022)
  8. ↑ Reddit - Dive into anything (Nov 24, 2022)
  9. ↑ Visualized: FTX's Leaked Balance Sheet (Nov 29, 2022)
  10. ↑ Talking to Sam Bankman Fried - YouTube (Nov 30, 2022)
  11. ↑ I didn't ever try to commit fraud on anyone: Sam Bankman-Fried - YouTube (Nov 30, 2022)
  12. ↑ SBF Explains Losses! - YouTube (Dec 1, 2022)
  13. ↑ Sorry You’re Bankrupt - YouTube (Dec 1, 2022)
  14. ↑ FTX Disaster - 7 Unbelievable Bankruptcy Discoveries - YouTube (Dec 5, 2022)
  15. ↑ UK Treasury finalises plans for crypto regulation amid FTX downfall - reports (Dec 9, 2022)
  16. ↑ You Got Robbed | FTX and BlockFI Crash - YouTube (Dec 11, 2022)
  17. ↑ Sam Bankman-Fried Applauded After Surreal Interview (Dec 12, 2022)
  18. ↑ @unusual_whales Twitter (Dec 13, 2022)
  19. ↑ Projects Benefited By Ftx Collapse (Dec 15, 2022)
  20. ↑ Sam Bankman-Fried in 'Good Spirits' in Rat-Infested Prison - Decrypt (Dec 15, 2022)
  21. ↑ I Accidentally Got SBF To Admit to Fraud - YouTube (Dec 16, 2022)
  22. ↑ FTX Was (And Is) A Complete Mess - YouTube (Dec 18, 2022)
  23. ↑ Reddit - Dive into anything (Dec 22, 2022)
  24. ↑ House Financial Services Committee holds a hearing to investigate FTX collapse — 12/13/22 - YouTube (Dec 24, 2022)
  25. ↑ Alameda Wallets Funnel Over $1.7 Million Via Crypto-Mixers Overnight | ZeroHedge (Dec 29, 2022)
  26. ↑ Sam Bankman-Fried Arrested Immediately After Saying He Wouldn't Be Arrested (Jan 11, 2023)
  27. ↑ @cz_binance Twitter (Sep 12, 2023)
  28. ↑ FTX: Collapsed crypto giant recovers over $5bn of assets - BBC News (Sep 12, 2023)
  29. ↑ FTX founder Sam Bankman-Fried to be released on $250 million bail, will live with his parents (Sep 14, 2023)
  30. ↑ ‘No Cooperation’: How Sam Bankman-Fried Tried to Cling to FTX - The New York Times (Sep 14, 2023)
  31. ↑ @coffeebreak_YT Twitter (Sep 14, 2023)
  32. ↑ Rekt - SBF - MASK OFF (Sep 14, 2023)
  33. ↑ @SCBgov_bs Twitter (Sep 14, 2023)
  34. ↑ Reddit - Dive into anything (Sep 14, 2023)
  35. ↑ US senators commit to advancing crypto bill despite FTX collapse (Sep 14, 2023)
  36. ↑ Is SBF a 'pawn' and 'useful idiot' in a bigger plot to take down crypto industry? - Mark Yusko - YouTube (Sep 14, 2023)
  37. ↑ Reddit - Dive into anything (Sep 14, 2023)
  38. ↑ I Accidentally Interviewed SBF And He Hated It - YouTube (Sep 14, 2023)
  39. ↑ @RepTomEmmer Twitter (Sep 14, 2023)
  40. ↑ @AutismCapital Twitter (Sep 14, 2023)
  41. ↑ Sam Bankman Fried Was Arrested - YouTube (Sep 14, 2023)
  42. ↑ - YouTube (Sep 14, 2023)
  43. ↑ Caroline Ellison (CEO of Alameda) has been found! - YouTube (Sep 14, 2023)
  44. ↑ Kevin O'Leary Just Shocked Everyone With His Response To The FTX Collapse - YouTube (Sep 14, 2023)
  45. ↑ SEC Charges Caroline Ellison and Gary Wang with Defrauding Investors in Crypto Asset Trading Platform FTX - Reddit (Sep 14, 2023)
  46. ↑ FTX Is About To Liquidate $3.4 BILLION Of Crypto! (Alts Are In Trouble) - YouTube (Sep 14, 2023)
  47. ↑ FTX gets court approval to sell crypto assets - Reuters (Sep 14, 2023)
  48. ↑ The Collapse of FTX: What Went Wrong With the Crypto Exchange? - Investopedia (Sep 14, 2023)
  49. ↑ What Happened To FTX? The Crypto Exchange Fund’s Collapse Explained. - Forbes (Sep 14, 2023)
  50. ↑ 50.0 50.1 Billion Dollar Crypto Exchange FTX Gains Regulatory Nod to Offload $3.4 Billion in Bitcoin, Ethereum, and Ripple (XRP): No Market Impact Foreseen - Dispelling FUD - Crypto News Flash (Sep 14, 2023)
  51. ↑ 51.0 51.1 51.2 Billionaire Bankman-Fried’s Crypto Exchange FTX Lands $32 Billion Valuation And $400 Million In New Funding - Forbes (Sep 14, 2023)
  52. ↑ FTX Logo - VectorSeek (Sep 14, 2023)
  53. ↑ 53.0 53.1 53.2 FTX Secures Court Approval to Sell Crypto Holdings, Including BTC and SOL - CoinDesk (Sep 14, 2023)
  54. ↑ Why The FTX Liquidation Will SURPRISE Everyone! - YouTube (Sep 14, 2023)
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