The swift demise of cryptocurrency exchange FTX in 2022 had damaging domino effects on the cryptocurrency industry, stoking widespread mistrust among the public and toppling cryptocurrency services that did business with it. At the time, FTX was the third-largest crypto exchange.
Learn more about what went wrong with FTX, including the role and trial outcome of its founder and former CEO, Sam Bankman-Fried.
Key Takeaways
- FTX collapsed in early November 2022 after journalists reported an affiliated trading firm, Alameda Research, derived most of its value from speculative cryptocurrency tokens.
- A surge of customer withdrawals due to concerns over this questionable financial valuation practice and unusually close relationship with…
