FTX
A major crypto exchange founded by Sam Bankman-Fried that collapsed in November 2022 after customer funds went missing.
FTX was a crypto exchange launched in 2019 by Sam Bankman-Fried. It grew into one of the biggest in the world, splashed its name across sports arenas and celebrity ads, and was valued in the tens of billions.
In November 2022 a leaked report raised questions about its sister trading firm, Alameda Research. Customers rushed to withdraw, and FTX couldn't pay: billions in customer deposits had been funnelled to Alameda. Withdrawals froze, the company filed for bankruptcy, and restructuring expert John Ray took over. Bankman-Fried was later convicted of fraud.
For anyone holding crypto, FTX is the textbook case for "not your keys, not your coins". See custodial wallet.
Trusting an exchange because it's big, famous and heavily advertised. None of that tells you whether your deposit is actually there.
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