FTX collapse
A major cryptocurrency exchange that collapsed into bankruptcy in November 2022. Prosecutors described an ~$8 billion shortfall in customer funds; founder Sam Bankman-Fried was convicted on seven counts and sentenced to 25 years.
Also known as: FTX, Sam Bankman-Fried, SBF, Alameda Research, FTT
Summary
FTX was an international cryptocurrency exchange that collapsed into bankruptcy in November 2022. Prosecutors said founder Sam Bankman-Fried misappropriated billions of dollars of FTX customer deposits, with reporting and trial testimony citing an approximately $8 billion shortfall in customer assets. [1][2][3]
What happened
According to the DOJ, customer funds were used to repay loans owed by Bankman-Fried's trading firm, Alameda Research, and for investments, real estate, and political contributions; investors and lenders were given false financial information. [1] The collapse followed reporting on Alameda's balance sheet and a wave of customer withdrawals. [2]
Outcome
In November 2023 Bankman-Fried was convicted on seven counts of fraud and conspiracy; in March 2024 he was sentenced to 25 years in prison and ordered to forfeit $11 billion. [1][2][3]
Bracketed numbers refer to the numbered sources listed below.
Sources (3)
See also
Gala Games exploitTokensOn May 20, 2024 an attacker abused a privileged minter account on the GALA token contract to mint 5 billion GALA (≈$200M+ nominal) and dumped ~600M of them for ~$22M of ETH before Gala froze the address. Gala Games called it an internal access-control failure; the attacker later returned the ~$22M.
HEX / PulseChain (Richard Heart)ProjectsCrypto projects (HEX, PulseChain, PulseX) created by Richard Heart (Richard Schueler). In July 2023 the U.S. SEC sued him for offering unregistered securities that raised $1B+ and for allegedly misappropriating ~$12M for luxury goods (including a 555-carat diamond). A court dismissed the case in 2024 for lack of U.S. jurisdiction; there was no finding of wrongdoing and Heart denies the allegations.
This page was last updated on Jun 15, 2026. View revision history.
