Answered: 6 questions about the fall of FTX
2 years, 1 month ago

Answered: 6 questions about the fall of FTX

Live Mint  

On 11 November, FTX, the third largest crypto exchange up until then, filed for bankruptcy. It made money out of arbitrage, buying bitcoin and other crypto tokens in one part of the world and selling them in another part of the world. As mentioned earlier, like Wall Street hedge funds, Alameda Research drove up returns by borrowing crypto tokens from FTX and making bigger leveraged bets. There were many other institutional investors like the Ontario Teachers’ Pension Plan, SoftBank Group Corp., and hedge funds Third Point and Tiger Global, who bet big money on FTX in particular. As The Wall Street Journal columnist Jason Zweig pointed out in a recent column: “On the ‘Odd Lots’ podcast in April, Mr. Bankman-Fried didn’t even bother to refute a question about whether a large part of his business might be a Ponzi scheme, also saying that it was ‘completely reasonable’ to assume many crypto assets are ‘worth zero’."

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History of this topic

FTX ordered to pay $12.7 billion in massive crypto fraud case
4 months, 2 weeks ago

FTX ordered to pay $12.7 billion in massive crypto fraud case

The Independent  

The latest headlines from our reporters across the US sent straight to your inbox each weekday Your briefing on the latest headlines from across the US Your briefing on the latest headlines from across the US SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy A court has ordered …

Nearly all FTX customers are getting their money back: What to know
7 months, 2 weeks ago

Nearly all FTX customers are getting their money back: What to know

LA Times  

Nearly all customers of FTX will get their money back, plus interest, after the cryptocurrency exchange imploded 17 months ago. Although customers will be reimbursed the cash value of their cryptocurrency assets at the time of FTX’s collapse plus some interest, that’s far short of how much money those assets would be worth today given crypto’s resurgence. Prosecutors said Bankman-Fried …

A timeline of the collapse at FTX
7 months, 2 weeks ago

A timeline of the collapse at FTX

Associated Press  

FTX, once among the largest cryptocurrency exchanges in the world, said this week that nearly all of its customers will receive the money back that they are owed, two years after its monumental collapse. Here is a timeline of what led up to this week’s announcement after an implosion at FTX kicked off what many had expected to become a …

FTX will return money to most customers less than 2 years after catastrophic crypto collapse
7 months, 2 weeks ago

FTX will return money to most customers less than 2 years after catastrophic crypto collapse

Associated Press  

FTX says that nearly all of its customers will receive the money back that they are owed, two years after the cryptocurrency exchange imploded, and some will get more than that. FTX was the third-largest cryptocurrency exchange in the world when it filed for bankruptcy protection in November 2022 after it experienced the crypto equivalent of a bank run. “We …

What happened to FTX? The collapse of Sam Bankman-Fried’s crypto ‘house of cards’
8 months, 3 weeks ago

What happened to FTX? The collapse of Sam Bankman-Fried’s crypto ‘house of cards’

The Independent  

Sign up to our free weekly IndyTech newsletter delivered straight to your inbox Sign up to our free IndyTech newsletter Sign up to our free IndyTech newsletter SIGN UP I would like to be emailed about offers, events and updates from The Independent. The crypto magnate, whose wealth was estimated as high as $26bn, testified before Congress in December that …

FTX Says It Expects to Repay Customers in Full. Some Are Suing for More
54 years, 11 months ago

FTX Says It Expects to Repay Customers in Full. Some Are Suing for More

Wired  

A group of former customers of bankrupt crypto exchange FTX are rebelling against a proposed plan that would return the entirety of the money they lost. The plan laid out by FTX in December to return customer funds does not reflect the full scope of the firm’s obligation to customers, claims Pat Rabbitte, one of the plaintiffs in the lawsuit—particularly …

One year after FTX imploded, here’s how crypto is changing
1 year, 1 month ago

One year after FTX imploded, here’s how crypto is changing

Live Mint  

For many who trade cryptocurrencies for a living, the events of a year ago are forever etched in memory. “The industry still primarily offers assets that can be made up out of thin air with values that are eminently manipulable,” said Hilary Allen, a law professor at American University Washington College of Law who has written about crypto’s impact on …

What’s Changed for Crypto After FTX? Not Much.
1 year, 2 months ago

What’s Changed for Crypto After FTX? Not Much.

Live Mint  

The collapse of crypto exchange FTX wiped out millions of its customers’ crypto holdings and turned its billionaire founder into a pariah now facing criminal fraud charges in New York. Instead, regulators have pursued a piecemeal enforcement campaign designed to impose Wall Street’s rules on crypto—a move the biggest crypto exchanges, such as Binance, are fighting in court. Another FTX …

FTX begins talks to relaunch international cryptocurrency exchange
1 year, 5 months ago

FTX begins talks to relaunch international cryptocurrency exchange

The Hindu  

Bankrupt FTX is moving ahead with efforts to revive its flagship international cryptocurrency exchange, the Wall Street Journal reported on Wednesday, citing CEO John Ray. The company "has begun the process of soliciting interested parties to the reboot of the FTX.com exchange," Ray said, according to the Journal's report. The failed crypto company has been holding talks with investors about …

Bankrupt cryptocurrency exchange FTX has recovered $7.3 billion in cash, liquid crypto assets
1 year, 8 months ago

Bankrupt cryptocurrency exchange FTX has recovered $7.3 billion in cash, liquid crypto assets

Firstpost  

FTX’s new CEO John Ray has detailed improper fund transfers and poor accounting at the collapsed crypto exchange, describing it as a ‘complete failure’ of controls At a hearing in a Delaware bankruptcy court on Wednesday, the company’s counsel said that insolvent cryptocurrency exchange FTX has recovered more than $7.3 billion in cash and liquid crypto assets, an increase of …

FTX reports $415 million in hacked crypto, Bankman-Fried says FTX U.S. is solvent
1 year, 11 months ago

FTX reports $415 million in hacked crypto, Bankman-Fried says FTX U.S. is solvent

The Hindu  

Bankrupt crypto exchange FTX said in a report to creditors on January 17 that about $415 million in cryptocurrency had been stolen in hacks. Mr. Bankman-Fried, who has been accused of stealing billions of dollars from FTX customers to pay debts incurred by his crypto-focused hedge fund, Alameda Research, pushed back against FTX's calculations late Tuesday, saying that the company's …

FTX reports $594 million in hacked crypto, Sam Bankman-Fried says FTX US is solvent
1 year, 11 months ago

FTX reports $594 million in hacked crypto, Sam Bankman-Fried says FTX US is solvent

ABC  

Bankrupt crypto exchange FTX has said in a report to creditors that about $US415 million in cryptocurrency had been stolen in hacks. Key points: Cryptocurrency exchange FTX filed for bankruptcy in November after a series of suspicious transactions came to light The company says it has lost $594 million to hackers since that date, exacerbating a shortfall in funds Former …

After FTX collapse, Sam Bankman-Fried arrested: What went wrong with the crypto giant?
2 years ago

After FTX collapse, Sam Bankman-Fried arrested: What went wrong with the crypto giant?

Firstpost  

FTX was founded in 2019 by ex-Wall Street trader Sam Bankman-Fried and former Google employee Gary Want. Let’s take a closer look: FTX’s incredible rise The company was founded by Bankman-Fried, an ex-Wall Street trader and former Google employee Gary Want in 2019. Bankman-Fried issued a “sincere” apology, adding FTX would do “everything we can to raise liquidity.” A day …

Timeline: The rise and spectacular fall of FTX
2 years ago

Timeline: The rise and spectacular fall of FTX

Al Jazeera  

The crypto exchange was founded in 2019 and attracted big-name investors such as Singapore’s Temasek. November 2: Crypto news website CoinDesk reports a leaked balance sheet that shows Alameda Research, Bankman-Fried’s crypto trading firm, was heavily dependent on FTX’s native token, FTT. November 11: FTX starts voluntary Chapter 11 proceedings in the US, along with its US unit, crypto trading …

Crypto exchange FTX
2 years ago

Crypto exchange FTX

ABP News  

San Francisco, Dec 11 In the wake of the collapse of crypto exchange FTX, the US Securities and Exchange Commission has directed publicly-traded companies to tell investors about their involvement with struggling cryptocurrency firms. The SEC, in a letter to the companies, said that recent bankruptcies and financial distress among crypto asset market participants have caused widespread disruption in those …

After FTX crash, ordinary crypto investors left wondering what happens next
2 years ago

After FTX crash, ordinary crypto investors left wondering what happens next

Firstpost  

Small investors who piled into cryptocurrencies on FTX, BlockFi, and other platforms were well aware of bitcoin’s volatility and large price swings. “They sold it to me, that there was no risk,” Butkus said, adding that he was unaware that BlockFi, which had borrowed money from FTX, was so closely tied to the exchange. Andrew Stoltmann, a securities litigation lawyer, …

$740M in crypto assets recovered in FTX bankruptcy so far
2 years ago

$740M in crypto assets recovered in FTX bankruptcy so far

Associated Press  

NEW YORK — The company tasked with locking down the assets of the failed cryptocurrency exchange FTX says it has managed to recover and secure $740 million in assets so far, a fraction of the potentially billions of dollars likely missing from the company’s coffers. FTX failed because its founder and former CEO Sam Bankman-Fried and his lieutenants used customer …

FTX Crash: How The Meltdown Of One Of The World’s Largest Crypto Platforms Led To Unprecedented Selloff
2 years, 1 month ago

FTX Crash: How The Meltdown Of One Of The World’s Largest Crypto Platforms Led To Unprecedented Selloff

ABP News  

We witnessed a massive round of selloff in the cryptocurrency market after Binance announced that it won’t buy FTX. Binance, the world’s biggest crypto platform, was set to acquire troubled rival FTX.com, but soon did a U-turn and walked away from the deal citing problems with FTX's finances as well as potential regulatory investigations. What led to the falling financial …

“Possible to lose everything”: Experts say dramatic FTX collapse should be a warning to crypto bros
2 years, 1 month ago

“Possible to lose everything”: Experts say dramatic FTX collapse should be a warning to crypto bros

Salon  

In the fast-paced world of cryptocurrency, vast sums of money can be made or lost in the blink of an eye. Large crypto investors, like FTX's competitor Binance, as well as individuals, began to sell off cryptocurrency held on FTX's exchange. Among the groups and individuals who held currency on the FTX platform were many of the normal players in …

FTX Crash: Indonesia Bars Exchanges From Trading Bankrupt Firm’s Tokens
2 years, 1 month ago

FTX Crash: Indonesia Bars Exchanges From Trading Bankrupt Firm’s Tokens

ABP News  

Indonesia on Thursday passed an order asking crypto exchanges in the country to stop trading FTX tokens after the embattled company’s bankruptcy filing in a US Court, said the sector's regulator in a statement, as reported by Reuters. FTX was founded in May 2019 by former Wall Street trader Sam Bankman-Fried and ex-Google employee Gary Wang, who was also an …

House panel to hold hearing on crypto exchange FTX collapse
2 years, 1 month ago

House panel to hold hearing on crypto exchange FTX collapse

Associated Press  

WASHINGTON — Lawmakers plan to investigate the failure of FTX, the large crypto exchange that collapsed last week and filed for bankruptcy protection, leaving investors and customers staring at losses that could total in the billions of dollars. The House Financial Services Committee said Wednesday that it expects to hear from Sam Bankman-Fried, the 30-year-old founder and former CEO of …

FTX collapse: Crypto investors can learn these lessons while billions go down the drain
2 years, 1 month ago

FTX collapse: Crypto investors can learn these lessons while billions go down the drain

Live Mint  

Misusing investors’ money, growing too fast and siphoning off money from one organisation to a sister concern can wreck any business. The problems mounted a few days ago when the Bahamian crypto exchange faced severe liquidity concerns and it was taking a long time for investors to redeem their investments. Regulators are now set to crack down upon the battered …

Size, scope of FTX failure gets clearer as users fear worst
2 years, 1 month ago

Size, scope of FTX failure gets clearer as users fear worst

Associated Press  

NEW YORK — Just days after cryptocurrency’s third-largest exchange collapsed, the public is starting to get an idea of how messy FTX’s bankruptcy case could be. Users remained frustratingly in the dark Tuesday about when they might get their funds back, if at all, directing much of their anger toward FTX’s founder and CEO, Sam Bankman-Fried. “We are shocked and …

FTX Bankruptcy Fallout Continues to Cause Crypto Chaos
2 years, 1 month ago

FTX Bankruptcy Fallout Continues to Cause Crypto Chaos

Bloomberg  

The crypto industry descended into chaos last week after a series of fast moving events. The trouble purportedly started after Binance CEO Changpeng Zhao tweeted that the crypto exchange would sell off some of rival exchange FTX’s native token, FTT, due to ‘risk management’ issues. Binance backed out citing due diligence concerns and FTX’s questionable handling of its customers’ funds. …

OPINION | FTX Crash: The Spectacular Collapse Of A $30-Billion Crypto Exchange Should Come As No Surprise
2 years, 1 month ago

OPINION | FTX Crash: The Spectacular Collapse Of A $30-Billion Crypto Exchange Should Come As No Surprise

ABP News  

Canberra: Not long ago, FTX was one of the world’s largest trading platforms for cryptocurrencies. A few days later, rival firm Binance announced it would sell its holdings of FTT tokens, a crypto that reportedly comprises much of Alameda’s assets. Panicked customers rushed to withdraw funds from FTX, and the company is now on the brink of collapse, with a …

FTX collapse being scrutinised by Bahamas authorities
2 years, 1 month ago

FTX collapse being scrutinised by Bahamas authorities

The Hindu  

The collapse of cryptocurrency exchange FTX is the subject of scrutiny from government investigators in the Bahamas, who are looking at whether any “criminal misconduct occurred,” the Royal Bahamas Police said on Sunday. In a statement on Sunday, the Royal Bahamas Police said: “In light of the collapse of FTX globally and the provisional liquidation of FTX Digital Markets Ltd, …

EXPLAINER: What\'s happening at bankrupt crypto exchange FTX?
2 years, 1 month ago

EXPLAINER: What\'s happening at bankrupt crypto exchange FTX?

Deccan Chronicle  

NEW YORK: The imploding cryptocurrency trading firm FTX is now short billions of dollars after experiencing the crypto equivalent of a bank run. FTX and dozens of affiliated companies including founder Sam Bankman-Fried's hedge fund, Alameda Research, filed the bankruptcy petition in Delaware on Friday. FTX's new CEO John Ray III said it was switching off the ability to trade …

EXPLAINER: What’s happening at bankrupt crypto exchange FTX?
2 years, 1 month ago

EXPLAINER: What’s happening at bankrupt crypto exchange FTX?

Associated Press  

The imploding cryptocurrency trading firm FTX is now short billions of dollars after experiencing the crypto equivalent of a bank run. FTX’s new CEO John Ray III said it was switching off the ability to trade or withdraw funds and taking steps to secure customers’ assets. People who own bitcoin should be OK if they keep them off exchanges such …

What's happening at bankrupt crypto exchange FTX? EXPLAINED
2 years, 1 month ago

What's happening at bankrupt crypto exchange FTX? EXPLAINED

India TV News  

FTX bankruptcy news: The imploding cryptocurrency trading firm FTX is now short billions of dollars after experiencing the crypto equivalent of a bank run. FTX's new CEO John Ray III said it was switching off the ability to trade or withdraw funds and taking steps to secure customers' assets. People who own bitcoin should be OK if they keep them …

FTX collapse sends shockwaves through crypto sector
2 years, 1 month ago

FTX collapse sends shockwaves through crypto sector

Al Jazeera  

Founder Sam Bankman-Fried was once hailed ‘a winner’ and is now being referred to as a ‘rogue actor’. Sam Bankman-Fried has received numerous plaudits as he rapidly achieved superstar status as the head of cryptocurrency exchange FTX: the saviour of crypto, the newest force in Democratic politics and potentially the world’s first trillionaire. “This is the direct result of a …

Have you invested in crypto on FTX or other platforms? We want to hear from you
2 years, 1 month ago

Have you invested in crypto on FTX or other platforms? We want to hear from you

NPR  

Have you invested in crypto on FTX or other platforms? We want to hear from you Enlarge this image toggle caption NPR NPR The spectacular collapse of FTX, one of the most prominent platforms for trading cryptocurrency has left many investors unable to access money in their trading accounts. If you're an investor in crypto who has lost money, we …

Collapsed cryptocurrency exchange FTX sees millions of dollars in assets removed from platform just hours after filing for bankruptcy
2 years, 1 month ago

Collapsed cryptocurrency exchange FTX sees millions of dollars in assets removed from platform just hours after filing for bankruptcy

ABC  

More chaos has engulfed troubled cryptocurrency exchange FTX, with analysts saying hundreds of millions of dollars in assets had been moved off the platform in "suspicious circumstances". Key points: The collapse of FTX has prompted fresh calls to better regulate the crypto-asset sector Sources say at least $1.49 billion of customer funds has vanished Former founder Sam Bankman-Fried has stepped …

Crypto exchange FTX files for bankruptcy as wunderkind CEO exits
2 years, 1 month ago

Crypto exchange FTX files for bankruptcy as wunderkind CEO exits

The Hindu  

Crypto exchange FTX filed for U.S. bankruptcy protection on Friday and its founder Sam Bankman-Fried resigned as chief executive, after the biggest blowup in the crypto industry drew calls for tighter regulation. FTX, its affiliated crypto trading firm Alameda Research, and about 130 of its other companies have commenced voluntary Chapter 11 bankruptcy proceedings in Delaware, the company said in …

Crypto exchange giant FTX collapses, files for bankruptcy
2 years, 1 month ago

Crypto exchange giant FTX collapses, files for bankruptcy

Associated Press  

NEW YORK — It took less than a week for FTX to go from the third-largest cryptocurrency exchange in the world to bankruptcy court. FTX and Bankman-Fried, as well as his brother, were also early investors in Semafor, the high-profile news startup run by former BuzzFeed editor-in-chief and New York Times columnist Ben Smith. The cryptocurrency lender BlockFi announced on …

Australian investors in limbo after collapse of FTX cryptocurrency exchange
2 years, 1 month ago

Australian investors in limbo after collapse of FTX cryptocurrency exchange

ABC  

Australian investors have been left unable to withdraw their funds after the spectacular collapse this week of cryptocurrency exchange FTX. Key points: High-profile cryptocurrency exchange FTX filed for bankruptcy and its chief executive stepped down Australian investors have been unable to withdraw funds from the platform FTX's local arm went into voluntary administration on Friday The company's Australian entities have …

FTX has shown us how the crypto economy can collapse.
2 years, 1 month ago

FTX has shown us how the crypto economy can collapse.

Slate  

To understand the sudden downfall of the now-collapsed crypto exchange FTX, you have to go back to the beginning. But it’s Bankman-Fried’s references to FTX’s first investor that’s the key to his exchange’s implosion—and the details of how that Binance investment unfolded are a great illustration of how crypto works, and falls apart. FTX was founded in May of 2019 …

FTX to file for U.S. bankruptcy protection, CEO Bankman-Fried resigns
2 years, 1 month ago

FTX to file for U.S. bankruptcy protection, CEO Bankman-Fried resigns

The Hindu  

FTX will initiate bankruptcy proceedings in the United States while its Chief Executive Sam Bankman-Fried resigned, the embattled cryptocurrency exchange said on Friday, triggering what could be one of the biggest meltdowns in the industry. Mr. Bankman-Fried's trading firm Alameda Research is also part of the bankruptcy protection, the company said. FTX's collapse marks a stunning reversal of fortunes for …

Crypto giant FTX files for bankruptcy and CEO resigns in disgrace
2 years, 1 month ago

Crypto giant FTX files for bankruptcy and CEO resigns in disgrace

Daily Mail  

FTX, the troubled cryptocurrency exchange, has filed for bankruptcy after a stunning financial implosion exposed concerns about its handling of customer funds and rocked broader crypto markets. The collapse of FTX follows a series of rapid developments this week, after: FTX was unable to fulfill a run on deposits when customers tried to withdraw $6 billion in 72 hours Binance, …

Distressed crypto exchange FTX files for bankruptcy
2 years, 1 month ago

Distressed crypto exchange FTX files for bankruptcy

Al Jazeera  

The trading platform had been struggling to raise billions in funds to stave off collapse after a wave of withdrawals. Crypto exchange FTX has initiated US bankruptcy proceedings and CEO Sam Bankman-Fried has resigned, after a liquidity crisis at the cryptocurrency group that has prompted intervention from regulators around the world. “I’m really sorry, again, that we ended up here,” …

AP source: US authorities investigate crypto exchange FTX
2 years, 1 month ago

AP source: US authorities investigate crypto exchange FTX

Associated Press  

NEW YORK — The swift collapse of cryptocurrency exchange FTX sent more shockwaves through the crypto world on Thursday, with authorities now investigating the firm for potential securities violations and analysts bracing for a further downturn in crypto prices. The crypto world had hoped that Binance, the world’s largest crypto exchange, might be able to rescue FTX and its depositors. …

Crypto markets teeter with FTX after Binance abandons bailout
2 years, 1 month ago

Crypto markets teeter with FTX after Binance abandons bailout

The Hindu  

Cryptocurrency markets nursed heavy losses on Thursday, with bitcoin struggling to recover from a two-year low as investors fretted about the fallout from the implosion of crypto exchange FTX and the future of the industry. FTX head Sam Bankman-Fried said he was "exploring all the options", but fading hopes for rescue left FTX teetering. "The dagger will continue to hang …

How Binance, FTX deal rocked the crypto world and then collapsed, MintGenie explains
2 years, 1 month ago

How Binance, FTX deal rocked the crypto world and then collapsed, MintGenie explains

Live Mint  

-- It’s been a tumultuous fewdays in the largely unregulated cryptocurrency world, with mudslinging on Twitter, a shock exchange takeover bid —which then collapsed —and plunging token values. The tweet followed a story from crypto news outlet CoinDesk saying that Alameda Research, a trading house owned by FTX’s founderBankman-Fried, had a lot of its assets in FTT token. A day …

What the Hell Happened to FTX?
54 years, 11 months ago

What the Hell Happened to FTX?

Wired  

The world’s largest crypto exchange, Binance, has walked away from a deal to acquire its troubled archrival, FTX, leaving the smaller company on the brink of collapse after a surge of withdrawals. But yesterday FTX suddenly suspended customer withdrawals, and the CEO of Binance, Changpeng Zhao, who goes by CZ, announced on Twitter that FTX had “asked for our help” …

Cryptocurrencies see sharp decline as investors fret on FTX deal
2 years, 1 month ago

Cryptocurrencies see sharp decline as investors fret on FTX deal

Al Jazeera  

Despite a rescue purchase by Binance announced on Tuesday, there are questions about FTX’s solvency and sector stability. Cryptocurrencies saw a second day of sharp declines on Wednesday, as investors continued to fret about the stability of the sector and the financial health of major exchange FTX despite plans for a rescue deal from bigger rival Binance. Crypto giant Binance …

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