FTX & Alameda Research
Launch
2019
Death / Exploit
November 2022
Total Loss
$8 Billion (Customer Bitcoin & Funds)
Sam Bankman-Fried, the founder of FTX, misappropriated client Bitcoin deposits by covertly transferring them to an affiliated trading entity, Alameda Research, for capital management. Following Alameda's insolvency from high-risk trading activities, FTX failed to maintain sufficient Bitcoin assets to meet customer redemption requests. Consequently, $32 billion in market value was completely liquidated within one week.