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The fall of FTX.


The once high-flying cryptocurrency group FTX has filed for bankruptcy protection in the US, marking a stunning collapse of the $32bn empire built by the colourful 30-year-old entrepreneur Sam Bankman-Fried. The filing in Delaware federal court yesterday included the following:

  • The leading FTX international exchange.
  • Its US crypto marketplace.
  • Bankman-Fried’s proprietary trading group Alameda Research and about 130 affiliated companies.

FTX’s failure came after Bankman-Fried desperately sought billions of dollars this week to save the exchange after it could not meet a torrent of customer withdrawals in a run prompted by concerns over its financial health and links to Alameda. Bitcoin dropped 5 per cent to a fresh two-year low of $16,492 after the FTX bankruptcy was announced.


John R Ray, a restructuring specialist who oversaw the Enron and Nortel Networks bankruptcy cases, will take the reins. The sprawling business empire run by a tight-knit group of longtime associates around Bankman-Fried, many of whom lived together in a penthouse in Nassau, Bahamas, has about 100,000 creditors and $10bn-$50bn of assets and liabilities, according to the filing.

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  1. Ryan12 November 2022 at 09:54

    I think any regular bank would have serious problems if all (or most) of its clients would ask for their money at a certain point. It's sad to see FTX go like this, I thought they had decent potential but the market is the market.

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