š£ FTX Collapse: The Fall of a Crypto Empire
In November 2022, one of the largest and most trusted crypto exchanges, FTX, filed for bankruptcy ā wiping out billions of dollars in user funds and shaking the entire crypto industry.
šļø Led by founder Sam Bankman-Fried (SBF), FTX was known for its sleek interface, aggressive marketing, and institutional partnerships. But behind the scenes, the company was secretly misusing customer deposits through its trading arm, Alameda Research.
š When leaked financial documents raised concerns, rival exchange Binance announced it would dump its FTT tokens ā triggering a bank run. Within 72 hours, FTX collapsed.
āļø SBF was later arrested and charged with fraud, conspiracy, and money laundering. The trial became a global media event, exposing deep flaws in crypto governance.
š” The FTX crash is now considered āCryptoās Lehman Brothers Momentā, prompting regulators worldwide to draft stricter laws on exchanges and custodians.
š·ļø #FTXCrash
