FTX was once the world's second-largest cryptocurrency exchange. In November 2022, a report revealed FTX's balance sheet was dominated by its own FTT token. A bank run ensued, revealing an $8 billion hole — customer funds had been secretly lent to SBF's trading firm Alameda Research.
2019
Sam Bankman-Fried founds FTX exchange in Hong Kong
2021
FTX valued at $25B — SBF becomes a celebrity billionaire
2022
CoinDesk publishes Alameda balance sheet — bank run begins
2022
FTX files Chapter 11 bankruptcy; SBF arrested in Bahamas
2023
Sam Bankman-Fried convicted on all 7 fraud charges
2024
SBF sentenced to 25 years in federal prison
N/A — catastrophic exchange fraud and collapse
💡 Did You Know
SBF was a major political donor, giving over $40M in the 2022 US election cycle. He was arrested just weeks after the election.
⚠ Controversies & Red Flags
The FTX collapse wiped out billions in customer funds, triggered contagion that collapsed several other crypto firms, and led to the arrest and conviction of SBF on seven counts of fraud.