The FTX Collapse (Sam Bankman-Fried)

The FTX cryptocurrency exchange, founded by Sam Bankman-Fried, collapsed in November 2022 due to an $8 billion hole in its accounts and the revelation that its affiliated trading firm, Alameda Research, held a large amount of FTX's FTT token, leading to Bankman-Fried's conviction for fraud.

The top 3

  1. Top 3 Largest Crypto Exchanges by Valuation Before Collapse: FTX reached a $32 billion valuation before its 2022 implosion, making it the second-largest exchange to fail after Mt. Gox, which handled 70% of all Bitcoin transactions at its peak.
  2. The Three Most Significant SBF Assets Seized by Prosecutors: Authorities seized over $700 million in assets from Sam Bankman-Fried, including Robinhood stock stakes, $93 million in political donations, and high-value Bahamas real estate portfolios. Sam Bankman-Fried
  3. Top 3 Major Institutional Investors Who Lost Big on FTX: Paradigm, Sequoia Capital, and SoftBank faced massive write-downs, with Sequoia infamously marking its entire $214 million FTX investment down to zero within days of the liquidity crisis. FTX

Sources

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