FTX
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
FTX was a Bahamas-based cryptocurrency exchange founded in 2019 by Sam Bankman-Fried. It grew into one of the world's largest crypto trading platforms, backed by top venture firms and celebrity endorsements, before collapsing in November 2022 in one of the largest frauds in financial history.
02 / FTX FAILURE REASONS
Failure reasons
FTX failed because customer money was secretly funneled to its sister trading firm, Alameda Research, leaving a roughly $8 billion hole when withdrawals surged. A leaked balance sheet published November 2, 2022 showed Alameda propped up by FTX's own token; Binance dumped its holdings, triggering a $6 billion bank run in three days. A rescue deal collapsed, and on November 11 FTX filed for Chapter 11 with about 130 affiliates as Bankman-Fried resigned. He was convicted of fraud in November 2023.
03 / EVENT HISTORY
Events in the structured record
- Bankruptcy proceedings
The company entered bankruptcy proceedings.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
Customer funds secretly diverted to sister firm Alameda Research
- 02
Leaked balance sheet exposes an roughly $8 billion hole, November 2022
- 03
Bank run: $6B withdrawn in three days; rescue deal collapses
- 04
Chapter 11 on November 11, 2022; founder convicted of fraud