FTX, once a leading cryptocurrency exchange, collapsed in 2022 due to alleged fraud by founder Sam Bankman-Fried. Investigations revealed billions in customer funds were misused, including transfers to sister firm Alameda Research for risky trades. The fallout led to bankruptcy and criminal charges. In 2023, efforts to recover the lost assets began, with some funds returned to creditors. The scandal shook trust in crypto markets and triggered global regulatory scrutiny. As of 2025, legal proceedings continue, and the case remains a cautionary tale about oversight, accountability, and the risks of unregulated digital finance.
