Bankruptcy of FTX

Last updated

Logo of FTX FTX logo.svg
Logo of FTX

The bankruptcy of FTX, a Bahamas-based cryptocurrency exchange, began in November 2022. The collapse of FTX, caused by a spike in customer withdrawals that exposed an $8 billion hole in FTX's accounts, [1] served as the impetus for its bankruptcy. Prior to its collapse, FTX was the third-largest cryptocurrency exchange by volume and had over one million users.

Contents

On 2 November 2022, CoinDesk published an article stating that Alameda Research, a trading firm affiliated with FTX and owned by FTX chief executive Sam Bankman-Fried, held a significant amount of FTX's exchange token, FTT. [2] [3] The article triggered a spike in withdrawals from FTX, but eventually, customers became unable to retrieve the money they had deposited in the exchange. [4] On 11 November, FTX, Alameda Research, and over 100 affiliated entities filed for bankruptcy. Bankman-Fried resigned as FTX CEO and was replaced by John J. Ray III. [5] [6]

The collapse of FTX has had a wide impact on cryptocurrency markets, with comparisons made to the Enron scandal and Madoff investment scandal, and was described by federal prosecutors as "one of the biggest financial frauds in American history". [7] [8] Following the bankruptcy, the Securities Commission of the Bahamas froze the assets of one of FTX's subsidiaries. [9] Bankman-Fried's net worth, estimated at $16 billion prior to the collapse, was reported as having been wiped out, [10] and several institutional investors of FTX wrote off their investment stakes in the company. [11] [12] Some $473 million in funds were later taken from FTX in an "unauthorized transaction". [13] The collapse of FTX has resulted in a ripple effect across cryptocurrency markets, with the price of Bitcoin falling to its lowest level in two years. [14]

In late 2022 and early 2023, key executives from FTX and Alameda, such as Caroline Ellison, Gary Wang, and Nishad Singh, pleaded guilty to defrauding FTX customers and related charges. [15] In October 2023, all three testified that it was Bankman-Fried who directed them to commit fraud. [16] On 2 November 2023, Sam Bankman-Fried was convicted of defrauding customers of FTX and lenders of Alameda Research. [17]

Background

Sam Bankman-Fried cofounded Alameda Research, a cryptocurrency trading firm, in 2017. [18] In 2019, Bankman-Fried had the idea of starting a cryptocurrency exchange to help bring in revenue to fund Alameda's activities and founded FTX. [19] Bankman-Fried was the CEO of both companies until he formally stepped down from his position at Alameda in October 2021, promoting traders Caroline Ellison and Sam Trabucco to co-CEOs. [20] Ellison was reported to have a romantic involvement with Bankman-Fried. [21] As of August 2021, Bankman-Fried still owned 90% of Alameda. [18]

The close relationship and potential conflicts of interest between Alameda and FTX drew scrutiny from the rest of the cryptocurrency industry. [22] [19] Alameda was once the largest trader on FTX, bringing liquidity to the exchange. [22] Between 1 June 2022 and 22 July 2022, Alameda's known wallets were the largest stablecoin depositors and sources of liquidity to all of FTX's known wallet addresses, accounting for 10% of Tether transfers and 30% of USD Coin transfers on the exchange. [22] According to John J. Ray III, Alameda had a "secret exemption" from FTX's auto-liquidation protocol. [23] [24]

Alameda Research suffered a series of losses in May and June 2022, which anonymous sources told the Wall Street Journal resulted in FTX lending the trading firm more than half of its customer funds, a decision that the sources said FTX CEO Sam Bankman-Fried described as a "poor judgment call". [25] [26] This was explicitly forbidden by FTX's terms of service. [27] On 12 November 2022, the Wall Street Journal reported that anonymous sources had said that Alameda CEO Caroline Ellison said that she, Bankman-Fried, Gary Wang, and Nishad Singh were aware of that decision. [28] The same was reported in the New York Times on 14 November 2022. [29] FTX used software to conceal the misuse of customer funds. [23] [24]

Timeline

CoinDesk article

Following months of arguments and disagreements between Changpeng Zhao, the CEO of Binance, and Bankman-Fried, tensions between the two had intensified days before the crisis. [30] Zhao's firm Binance had obtained $2.1 billion in Binance USD and FTT coins in 2021, following a deal in which FTX bought back an equity stake held by Binance in FTX, and in early November 2022, it had 23 million FTT tokens, worth about $529 million at the time. [31]

Binance divestment and proposed acquisition

FTX Token
Denominations
CodeFTT
Development
White paper "FTT Whitepaper". Archived from the original on 9 November 2022.
Initial release5 May 2019(5 years ago) (2019-05-05)
Ledger
Circulating supply134,454,978.27 FTT (est. August 2022)

On 7 November 2022, Zhao announced that Binance had intended to sell its holdings in FTT. [32] [31] The sale of Binance's holdings in FTT, compounded with the low trading volume of FTT and the enmity between Zhao and Bankman-Fried, resulted in the price of the token plummeting. [33] [34] [35] Binance had received FTT from FTX in 2021 during a transaction in which FTX bought back Binance's equity stake in FTX. [36] Zhao cited "recent revelations that came to light" as the motivation for selling FTT. [36] Bloomberg and TechCrunch reported that any sale by Binance would likely have an outsized impact on FTT's price, given the token's low trading volume. [37] [38] The announcement by Zhao of the pending sale and disputes between Zhao and Bankman-Fried on Twitter led to a decline in the price of FTT and other cryptocurrencies, [39] resulting in $6 billion of customer withdrawals from FTX. [40] FTX became unable to meet the demand for further withdrawals, and on 8 November, Bankman-Fried and Zhao jointly announced Binance had entered into a nonbinding agreement to purchase FTX to ensure that customers could recover their assets in a timely manner. [41] [42] The deal did not include the sale of FTX.US. [41] Zhao announced on Twitter that the company would complete due diligence soon, adding that all crypto exchanges should avoid using tokens as collateral. [43] [44] He also wrote that he expected FTT to be "highly volatile in the coming days as things develop". On the day of that announcement, FTT lost 80 percent of its value. [45]

Binance acquisition dropped

On 9 November, Bloomberg called the acquisition of FTX by Binance "unlikely" due to the poor state of FTX's finances. [46] Bloomberg also reported that the United States Securities and Exchange Commission and Commodity Futures Trading Commission were investigating the nature of FTX's connections to Bankman-Fried's other holdings and its handling of client funds. [47] Later that day, the Wall Street Journal reported that Binance would not move forward with the deal to acquire FTX. [48] Binance cited FTX's reported mishandling of customer funds and pending investigations of FTX as the reasons for not pursuing the deal. [49] Bankman-Fried said in a Slack message that FTX had learned through the press about Binance's concerns and decision. [50]

Collapse and further rescue attempts

On 9 November, FTX's website said that it was not processing withdrawals at that time. [40] Bankman-Fried said that although the firm's assets were worth more than its clients' deposits, it would need funds from outside to meet demand for withdrawals due to a lack of liquidity. [51] [52] Bankman-Fried stated on 9 November that FTX.US, as a separate company, was "not currently impacted" by the crisis. [53]

On 10 November, Axios reported that FTX approached Kraken for a potential rescue deal. [54] Bankman-Fried made several statements on 10 November, taking responsibility for FTX's failure and indicating that FTX was attempting to raise $10 billion in emergency financing to remain solvent. [55] [56] [57] Bankman-Fried also announced that Alameda Research would cease trading and end operations. [58] FTX's in-house legal and compliance teams had, for the most part, resigned by 10 November. [59] [60] Anonymous sources cited by the Wall Street Journal on 10 November said that Alameda Research owed FTX some $10 billion, as FTX had lent funds placed on the exchange for trading to Alameda so that Alameda could make investments with the money. [61]

Though Bankman-Fried said that FTX.US customers did not have reason to worry on Twitter on 10 November, employees began attempting to sell assets belonging to the firm on the same day. [62] These assets include stock-clearing company Embed Financial Technologies and the naming rights to FTX Arena. [62] Disagreements emerged between remaining executives, with Bankman-Fried and FTX COO Constance Wang resisting urges from Ryne Miller, a member of FTX US's legal team, to end trading on the exchanges. [63] Bankman-Fried continued to seek funding even as Miller informed other executives that he believed there was a "0%" chance of securing further investment. [63] Miller and other executives asked Bankman-Fried to cede control of FTX US to them, which he resisted. [63] On 11 November, Bankman-Fried announced that he had filed FTX US for bankruptcy along with FTX and Alameda. [64] Bankman-Fried continued to seek capital for FTX after the bankruptcy, and claimed without evidence that a potential backer had emerged soon after the filing. [63]

On 12 November, anonymous sources cited by the Wall Street Journal said Alameda CEO Caroline Ellison disclosed to other Alameda employees that she, Sam Bankman-Fried, Gary Wang, and Nishad Singh knew that client deposits were transferred from FTX to Alameda. [65] An anonymous source cited by the New York Times on 14 November said the same. [66] Anonymous sources cited by the Wall Street Journal said the funds were used in part to pay back loans Alameda had taken to make investments. [65] On 10 November, the Securities Commission of the Bahamas froze the assets of one of FTX's subsidiaries, FTX Digital Markets Ltd, "and related parties", and provisionally appointed an attorney as liquidator. [67] [68] Japan's Financial Services Agency ordered FTX Japan to suspend some operations. [69] [70] The company's Australian subsidiary was placed under administration. [69]

On the same day, a team running the FTX Future Fund, a charitable group bankrolled by Bankman-Fried, announced their collective resignations. [71] Future Fund had committed $160 million in charitable grants and investments by 1 September of that year. [72]

Bankruptcy

On 11 November, FTX, FTX US, Alameda Research, and more than 100 affiliates filed for bankruptcy in Delaware. [73] [71] [74] Anonymous sources cited by the New York Times said that the exchange owes as much as $8 billion. [71] The crypto lender BlockFi, which was affiliated with FTX, announced on 10 November that it was suspending operations as a result of FTX's collapse. [71] Bankman-Fried resigned as CEO and was replaced by John J. Ray III, a corporate restructuring specialist who previously oversaw the liquidation of Enron. [73] [74] [75] As of 12 November, Bankman-Fried told Reuters that he was still in the Bahamas, [76] though other high-ranking FTX employees had begun leaving for Hong Kong, the location of the company's former headquarters, or other locations. [77] Authorities in the Bahamas, including the Royal Bahamas Police Force, questioned Bankman-Fried on 12 November. [78] Despite FTX's bankruptcy, Bankman-Fried continued to attempt to raise money for the firm during the weekend of 12 and 13 November. [79]

Unauthorized transactions

Late on 11 November, some $473 million in funds were removed from FTX through what Ryne Miller, FTX US's general counsel, characterized as "unauthorized transactions". [80] Miller further announced that FTX and FTX US intended to move remaining funds denominated in cryptocurrency to offline "cold storage". [80] The funds taken from FTX were mostly stablecoins such as Tether, and were quickly exchanged for Ether, a method used by cryptocurrency thieves to thwart attempts to retrieve stolen funds. [81] A person speaking on behalf of FTX in a Telegram chat referred to the "unauthorized transactions" as a "hack" and encouraged users to delete FTX mobile apps as they were compromised. [77] Kraken has since announced its assistance in identifying the perpetrator. [82] On 14 November, Kraken's chief security officer said on Twitter that the firm knew "the identity" of a user who paid transaction fees associated with moving the stolen money through their Kraken account. [83] In an interview with Kelsey Piper published 16 November by Vox , Bankman-Fried blamed an "ex-employee" or malware on a device owned by an ex-employee for the theft. [84]

In January 2024, the U.S. Department of Justice indicted three individuals for running a SIM swap scam operation that allegedly stole “over $400 million in virtual currency” from an unspecified company between November 11-12, 2022. [85] Sources told Bloomberg that the company was FTX. [86]

Between $1 billion and $2 billion in customer funds reportedly could not be accounted for as of 12 November. [87] The Financial Times reported that FTX's balance sheet shortly before the bankruptcy showed $9 billion in liabilities against $900 million in liquid assets, $5 billion in "less liquid" assets, and $3.2 billion in illiquid private equity investments. [88] American columnist Matt Levine described that among its less liquid assets that "[FTX] relied on to be able to pay out customer balances" were two tokens that "it had just made up", referring to the FTX Token and Serum, a separate cryptocurrency accounted for in the balance sheet. [89]

Contagion fears and impact on cryptocurrency markets

Cryptocurrencies experienced swings and declines in value as news of FTX's collapse first emerged in early November: Tether dropped below its peg price of $1.00 to $0.97 [90] and Bitcoin sank to its lowest price in two years. [74] Share prices for publicly traded cryptocurrency companies declined. [91] The price of Solana, which was affiliated with Bankman-Fried, declined as well. [92] The crisis at FTX has inspired an increase in withdrawals from other exchanges. [93] A decline in the value of Cronos, the token of exchange Crypto.com, triggered fears of the potential for a collapse similar to that of FTX and spurred withdrawals from the platform. [94] CEO Kris Marszalek provided assurances that the firm was liquid and that it did not use Cronos in a manner similar to the way FTX used FTT. [94] Bloomberg reported that the collapse of FTX exacerbated institutional skepticism of cryptocurrencies as an asset class. [95]

BlockFi, a cryptocurrency lender, filed for Chapter 11 bankruptcy protection on 28 November; the firm had earlier begun preventing withdrawals. [96] [97] The company disclosed "significant exposure" to FTX on 14 November. [97] Another cryptocurrency lender, Genesis, a subsidiary of Digital Currency Group, halted withdrawals on 16 November. [98] This halt caused Gemini, an exchange owned by the Winklevoss twins, to cease allowing redemptions for clients using a service provided through a partnership with Genesis. [99] Another Digital Currency Group subsidiary, Grayscale, saw the value of its flagship offering, the publicly traded Grayscale Bitcoin Trust, decline by 20% over the two weeks preceding 17 November. [100] Grayscale Bitcoin Trust was trading at a discounted price, 42% below the value of its Bitcoin, as of 14 November. [101]

Consequent bank failures

Silvergate Bank covered colossal losses on the bankruptcy of FTX. On 9 March 2023 Silvergate Bank announced it would wind down its operations and undergo liquidation, in turn creating a domino effect of chain insolvencies. [102] [103] On 12 March 2023, Signature Bank, which catered to operators such as Binance and Celsius Network, collapsed after being closed by the New York State Department of Financial Services after being designated a systemic risk following a run. [104] After Silicon Valley Bank's collapse, Signature Bank's collapse was the third largest in United States history. [105]

Solana recovers, FTX to restitute customers with interest

In 2023, Solana recovered, making it possible to pay people back. [106] CEO John J. Ray III estimated that "customers and digital asset loan creditors will recover between 118% and 142% of their Petition Date claim values."

Any left over money would normally go to stakeholders (of which SBF is the largest), but the IRS and the SEC also have "somewhat hazy claims", which take priority. [106]

Investigations

Following the collapse of FTX, the Royal Bahamas Police Force launched a criminal investigation into the company. [107] [27]

Anonymous sources cited by Bloomberg said that the office of the United States Attorney for the Southern District of New York had begun an investigation into FTX's collapse as of 14 November. [28]

The United States House Committee on Financial Services plans to conduct hearings in December on the collapse of FTX, and committee leaders said they would seek testimony from Bankman-Fried. [108]

On 15 November 2022, a class-action lawsuit was filed in Miami against Bankman-Fried and several celebrities, including American football quarterback Tom Brady and comedian Larry David, alleging the company engaged in deceptive practices; they are seeking damages. [109] The lawsuit also named Gisele Bündchen, Steph Curry, Shaquille O'Neal, Udonis Haslem, David Ortiz, Trevor Lawrence, Shohei Ohtani, Naomi Osaka, and Kevin O'Leary. [110]

On 21 December 2022, both Caroline Ellison (former CEO of Alameda) and Gary Wang (former Chief Technology Officer of FTX) pled guilty to fraud and other charges and were cooperating with federal investigators in criminal case against Sam Bankman-Fried. In the signed agreements Ellison and Wang agreed to "cooperate fully" and "truthfully and completely disclose all information concerning all matters". [111] On 3 January 2023, Bankman-Fried pled not guilty to fraud and other charges. His trial began in October 2023. [112] On 2 November 2023, Bankman-Fried was found guilty of all charges. [17]

Impact

Effects on other firms

On 16 November 2022, the cryptocurrency brokerage service Genesis suspended withdrawals following FTX declaring bankruptcy, further affecting the industry. The cryptocurrency exchange company Gemini, owned by Cameron and Tyler Winklevoss, announced that it would be pausing withdrawals on its Earn program, which uses Genesis as a lending partner. [113]

The exchange token of Crypto.com, Cronos, lost approximately $1 billion in value in November. [114] On 14 November, Crypto.com's CEO assured users that the exchange was functioning as normal. [114] Commenters and customers remained fearful that Crypto.com could experience a collapse similar to FTX. [115]

Losses by FTX investors and customers

Institutional investors that stand to lose money due to their stakes in FTX include Tiger Global Management, the Ontario Teachers' Pension Plan, SoftBank Group, BlackRock, Lightspeed Venture Partners, Temasek, and Sequoia Capital. [116] [117] [11] [118] [12] Sequoia Capital wrote down its equity in FTX to $0 on 9 November, losing some $214 million. [119] Sequoia released a notice to investors, also published on Twitter, assuring them the firm's stake in FTX represented a small amount of its overall portfolio, [120] and replaced a profile of Bankman-Fried published on the firm's website with a link to the same notice. [121] [122] [123] The Ontario Teachers' Pension Plan released a similar statement. [124]

BlockFi, a cryptocurrency lender, was reportedly taking steps to file for bankruptcy as of 15 November, having earlier halted withdrawals. [97] The company disclosed "significant exposure" to FTX on 14 November. [97] Another cryptocurrency lender, Genesis, a subsidiary of Digital Currency Group, halted withdrawals on 16 November. [125] This halt caused Gemini to cease allowing redemptions for clients using a service provided through a partnership with Genesis. [126] BlockFi confirmed speculation by filing for Chapter 11 bankruptcy protection in the United States on 28 November. [127]

Cryptocurrency investment firms with assets still held on FTX after its bankruptcy include Galois Capital and Galaxy Digital. [128] Several public figures also invested in FTX or received compensation for promoting the company. [129] These include former couple Tom Brady and Gisele Bündchen, as well as Shaquille O'Neal, Stephen Curry, and Kevin O'Leary. [129] According to anonymous sources cited by The Information , some venture capital firms are considering lawsuits against Bankman-Fried. [130]

Anthony Scaramucci, founder of SkyBridge Capital, announced the firm was attempting to buy back a 30% stake in the business owned by FTX. [131]

Commentary and reactions

Jim Chanos predicted the collapse of FTX would lead to increased scrutiny and regulation of cryptocurrencies. Chanos further criticized the cryptocurrency sector as "designed to extract fees from really unsuspecting investors". [132] Richard Handler, CEO of American financial firm Jefferies Group, tweeted on 10 November that he had attempted to meet with Bankman-Fried in July and again in September as he perceived he was "in over his head". [133] Handler stated that Bankman-Fried did not respond to the emails sent from Jefferies staff sent on Handler's behalf. [133] The sudden collapse of FTX has been compared to the bankruptcy of Lehman Brothers by writers in publications including The New York Times and the Financial Times, with some deeming FTX's collapse as "crypto's Lehman moment". [134] [135] Lawrence Summers acknowledged the comparisons to Lehman and further compared the collapse to the Enron scandal, caused by fraud perpetrated by Enron executives. [136] Rostin Behnam, the Chairman of the Commodity Futures Trading Commission, called for Congress to grant the organization more power to regulate cryptocurrencies. [137] Risk management firm Titan Grey published a primer on the commencement and early motions practice of the FTX chapter 11 case, analyzing issues such as creditor privacy, relief from the automatic stay, proposed differential treatment of customers from other creditors, and others. [138]

In July 2023, it was announced that T.J. Miller would star as “a character inspired by Bankman-Fried” in Fortun3, “an interactive series … inspired by the collapse of FTX.” [139]

Impact on effective altruism

The FTX collapse resulted in scrutiny of and a loss of funding for the effective altruism movement, which Bankman-Fried had funded using profits from FTX. [140] However, several leaders of the EA movement, including William MacAskill and Robert Wiblin, condemned FTX's actions. [141]

Prior to the collapse, Bankman-Fried and other senior leaders of FTX and Alameda were altogether worth approximately $16.5 billion, making them the second-largest group of benefactors to the EA movement after Open Philanthropy and Good Ventures. [142] On 10 November, the team running the FTX Future Fund, a charitable group bankrolled by Bankman-Fried, announced that they had resigned earlier that day. [71] Future Fund had committed $160 million in charitable grants and investments by 1 September of that year. [72]

    Related Research Articles

    A cryptocurrency exchange, or a digital currency exchange (DCE), is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies. Exchanges may accept credit card payments, wire transfers or other forms of payment in exchange for digital currencies or cryptocurrencies. A cryptocurrency exchange can be a market maker that typically takes the bid–ask spreads as a transaction commission for its service or, as a matching platform, simply charges fees.

    Fenwick & West LLP is a law firm of more than 470 attorneys with offices in Silicon Valley, San Francisco, Seattle, New York City, Santa Monica, Washington, DC and Shanghai. The firm focuses on the technology and life sciences sectors, advising clients at all stages from startups to public companies. Fenwick has been embroiled in legal issues with the US law enforcement and multiple class action lawsuits due to their representation of FTX, for whom they allegedly created shell companies in order to launder money and skirt regulatory scrutiny.

    CoinDesk is a news site specializing in bitcoin and digital currencies. Founded by Shakil Khan, the firm also provides guides to bitcoin for those new to digital currencies.

    <span class="mw-page-title-main">Digital Currency Group</span> American venture capital company

    Digital Currency Group (DCG) is a venture capital company focusing on the digital currency market. It is located in Stamford, Connecticut. The company has the subsidiaries Foundry, Genesis, Grayscale Investments, and Luno. It also formerly owned CoinDesk.

    <span class="mw-page-title-main">Barbara Fried</span> American lawyer and professor

    Barbara Helen Fried is an American lawyer and professor emeritus at Stanford Law School. She is the mother of FTX and Alameda Research co-Founder Sam Bankman-Fried, convicted on seven counts of criminal fraud as CEO of the now-defunct and bankrupt cryptocurrency exchange, alongside other company insiders.

    Allan Joseph Bankman is an American legal scholar and psychologist. He is the Ralph M. Parsons Professor of Law and Business at Stanford Law School. He was also employed at FTX, the cryptocurrency company founded by his son, Sam Bankman-Fried, who is an entrepreneur and convicted felon. His tenure at FTX lasted until the company's bankruptcy and subsequent collapse in 2022.

    A cryptocurrency bubble is a phenomenon where the market increasingly considers the going price of cryptocurrency assets to be inflated against their hypothetical value. The history of cryptocurrency has been marked by several speculative bubbles.

    <span class="mw-page-title-main">Sam Bankman-Fried</span> American entrepreneur convicted of fraud (born 1992)

    Samuel Benjamin Bankman-Fried, commonly known as SBF, is an American entrepreneur who was convicted of fraud and related crimes in November 2023. Bankman-Fried founded the FTX cryptocurrency exchange and was celebrated as a "poster boy" for crypto, with FTX having a global reach with more than 130 international affiliates. At the peak of his net worth, he was ranked the 41st-richest American in the Forbes 400.

    <span class="mw-page-title-main">Solana (blockchain platform)</span> Public blockchain platform

    Solana is a blockchain platform which uses a proof-of-stake mechanism to provide smart contract functionality. Its native cryptocurrency is SOL.

    FTX Trading Ltd., commonly known as FTX, is a bankrupt company that formerly operated a cryptocurrency exchange and crypto hedge fund. The exchange was founded in 2019 by Sam Bankman-Fried and Gary Wang and collapsed in 2022 after massive fraud perpetrated by Bankman-Fried and his partner Caroline Ellison forced the company to file for Chapter 11 bankruptcy.

    Crypto.com is a cryptocurrency exchange company based in Singapore that offers various financial services, including an app, exchange, and noncustodial DeFi wallet, NFT marketplace, and direct payment service in cryptocurrency. As of June 2023, the company reportedly had 100 million customers and 4,000 employees. The exchange issues its own token named Cronos (CRO).

    Alameda Research was a cryptocurrency trading firm, co-founded in September 2017 by Sam Bankman-Fried and Tara MacAulay. In November 2022, FTX, Alameda's sister cryptocurrency exchange, experienced a solvency crisis, and both FTX and Alameda filed for Chapter 11 bankruptcy. That same month, anonymous sources told The Wall Street Journal that FTX had lent more than half of its customers' funds to Alameda, which was explicitly forbidden by FTX's terms-of-service.

    <span class="mw-page-title-main">BlockFi</span> Defunct digital asset lender

    BlockFi was a digital asset lender founded by Zac Prince and Flori Marquez in 2017. It was based in Jersey City, New Jersey. It was once valued at $3 billion.

    Caroline Ellison is an American former business executive and quantitative trader who was the CEO of Alameda Research, a trading firm affiliated with the cryptocurrency exchange FTX and founded by FTX founder Sam Bankman-Fried. Ellison was terminated from her position after FTX and Alameda filed for bankruptcy. In 2022, Ellison pleaded guilty to two counts of wire fraud, two counts of conspiracy to commit wire fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering.

    Voyager Digital was a cryptocurrency brokerage company.

    John Samuel Trabucco is an American business executive. He was co-CEO of Alameda Research, a defunct quantitative trading firm founded by Sam Bankman-Fried before FTX. Caroline Ellison was Alameda's other co-CEO. Trabucco stepped down from Alameda in August 2022, leaving Ellison as sole CEO until its bankruptcy along with FTX three months later.

    Gary Wang is an American computer programmer who co-founded the crypto currency exchange FTX with Sam Bankman-Fried. At the height of his success in 2022, Wang was ranked the 227th richest American in the Forbes 400, and the 431st richest person in the world by The World's Billionaires. After FTX collapsed into bankruptcy, caused by massive fraud perpetrated by Wang, Bankman-Fried and a few others, Wang plea bargained a guilty charge in exchange for testifying against his former college roommate and FTX cofounder, Bankman-Fried. Before co-founding FTX, Wang worked at Google Flights, building systems for the aggregation of ticket prices.

    <i>Going Infinite</i> 2023 book by Michael Lewis

    Going Infinite: The Rise and Fall of a New Tycoon is a 2023 book by Michael Lewis about Sam Bankman-Fried, a fraudster who founded the failed cryptocurrency exchange FTX. The book's publication date, October 3, 2023, coincided with the beginning of Bankman-Fried's trial on seven counts of fraud and money laundering. On November 2, 2023, in the case of United States v. Bankman-Fried, Bankman-Fried was convicted of all seven counts of fraud, conspiracy, and money laundering.

    <i>United States v. Bankman-Fried</i> 2023 trial of FTX founder

    United States of America v. Samuel Bankman-Fried was a 2023 federal criminal trial in the United States District Court for the Southern District of New York. Financial entrepreneur Sam Bankman-Fried, commonly known as SBF, was convicted on seven charges of fraud and conspiracy following the collapse of his cryptocurrency exchange FTX in November 2022. After the jury's verdict in November 2023, on March 28, 2024, Bankman-Fried was sentenced to 25 years in federal prison.

    <span class="mw-page-title-main">Arkham Intelligence</span>

    Arkham Intelligence is a public data application that enables users to analyze blockchain and cryptocurrency activity. Founded by Miguel Morel in 2020, the company's platform utilizes AI to identify and catalog the owners of blockchain addresses. Its partners include various cryptocurrency and blockchain companies.

    References

    1. ↑ Yaffe-Bellany, David (2 November 2023). "Sam Bankman-Fried Is Found Guilty of 7 Counts of Fraud and Conspiracy". The New York Times . Archived from the original on 3 November 2023. Retrieved 3 November 2023.
    2. ↑ Allison, Ian (2 November 2022). "Divisions in Sam Bankman-Fried's Crypto Empire Blur on His Trading Titan Alameda's Balance Sheet". www.coindesk.com. Archived from the original on 8 November 2022. Retrieved 18 November 2022.
    3. ↑ Macheel, Tanaya (8 November 2022). "Bitcoin briefly touches a new low for the year, FTX token plunges more than 75% in broad crypto sell-off". CNBC . Archived from the original on 8 November 2022. Retrieved 18 November 2022.
    4. ↑ Wilson, Tom; Berwick, Angus (8 November 2022). "Crypto exchange FTX saw $6 bln in withdrawals in 72 hours". Reuters. Archived from the original on 18 November 2022. Retrieved 18 November 2022.
    5. ↑ "Enron's Liquidator to Oversee FTX's Massive Crypto Bankruptcy". news.bloombergtax.com. Archived from the original on 17 November 2022. Retrieved 18 November 2022.
    6. ↑ "FTX new CEO says crypto platform's collapse 'unprecedented' – DW – 11/17/2022". Deutsche Welle. Archived from the original on 22 November 2022. Retrieved 22 November 2022.
    7. ↑ Revell, Eric (15 November 2022). "FTX's Sam Bankman-Fried collapse compared to Enron, Madoff". FOXBusiness. Archived from the original on 22 November 2022. Retrieved 22 November 2022.
    8. ↑ Weiser, Benjamin (13 December 2022). "Prosecutor in Bankman-Fried Case Made a Career of White-Collar Cases". The New York Times. ISSN   0362-4331. Archived from the original on 13 December 2022. Retrieved 13 December 2022.
    9. ↑ Isidore, Chris (16 November 2022). "FTX's Bahamas unit files for bankruptcy in New York | CNN Business". CNN. Archived from the original on 18 November 2022. Retrieved 18 November 2022.
    10. ↑ "Bankman-Fried's Assets Plummet From $16 Billion to Zero in Days". Bloomberg.com. 11 November 2022. Retrieved 22 November 2022.
    11. 1 2 Gelsi, Steve. "FTX problems mean big headaches for its private equity investors". MarketWatch. Archived from the original on 18 November 2022. Retrieved 17 November 2022.
    12. 1 2 Parmar, Hema; Tan, Gillian (9 November 2022). "FTX Fiasco Hits Investors From Tiger Global to Tom Brady". Bloomberg. Archived from the original on 9 November 2022. Retrieved 9 November 2022.
    13. ↑ "FTX says investigating 'unauthorized transactions'". Reuters. Reuters. 12 November 2022. Archived from the original on 18 November 2022. Retrieved 18 November 2022.
    14. ↑ "Bitcoin Price Hit a Multi-Year Low, Making it a Year to Forget for Biggest Cryptocurrency". WSJ. Archived from the original on 18 November 2022. Retrieved 18 November 2022.
    15. ↑ Yaffe-Bellany, David (28 February 2023). "Third Top FTX Executive Pleads Guilty in Fraud Investigation". The New York Times . Archived from the original on 3 November 2023. Retrieved 3 November 2023.
    16. ↑ "SBF's Inner Circle Delivered a Conviction. What's Next for Them?". Bloomberg.com. 3 November 2023. Archived from the original on 3 November 2023. Retrieved 3 November 2023.
    17. 1 2 Cohen, Luc; Godoy, Jody (3 November 2023). "Sam Bankman-Fried convicted of multi-billion dollar FTX fraud". Reuters. Archived from the original on 3 November 2023. Retrieved 3 November 2023.
    18. 1 2 "Portrait of a 29-year-old billionaire: Can Sam Bankman-Fried make his risky crypto business work?". finance.yahoo.com. 12 August 2021. Archived from the original on 24 June 2022. Retrieved 18 November 2022.
    19. 1 2 Goldstein, Matthew; Stevenson, Alexandra; Farrell, Maureen; Yaffe-Bellany, David (18 November 2022). "How FTX's Sister Firm Brought the Crypto Exchange Down". The New York Times. ISSN   0362-4331. Archived from the original on 18 November 2022. Retrieved 18 November 2022.
    20. ↑ Research, Alameda. "Alameda Research Appoints Caroline Ellison And Sam Trabucco As Co-Chief Executive Officers". www.prnewswire.com (Press release). Archived from the original on 18 November 2022. Retrieved 18 November 2022.
    21. ↑ Grossman, Alexander Osipovich, Caitlin Ostroff, Patricia Kowsmann, Angel Au-Yeung and Matt (19 November 2022). "They Lived Together, Worked Together and Lost Billions Together: Inside Sam Bankman-Fried's Doomed FTX Empire". The Wall Street Journal. Archived from the original on 8 November 2023. Retrieved 22 November 2022.{{cite news}}: CS1 maint: multiple names: authors list (link)
    22. 1 2 3 Massa, Annie; Irrera, Anna; Miller, Hannah (14 September 2022). "Crypto Quant Shop With Ties to FTX Powers Bankman-Fried's Empire". Bloomberg News . Archived from the original on 17 November 2022. Retrieved 18 November 2022.
    23. 1 2 Morrow, Allison (17 November 2022). "'Complete failure:' Filing reveals staggering mismanagement inside FTX | CNN Business". CNN. Archived from the original on 18 November 2022. Retrieved 18 November 2022.
    24. 1 2 "New CEO Says FTX Suffered 'Complete Failure of Corporate Controls'". WSJ. Archived from the original on 18 November 2022. Retrieved 18 November 2022.
    25. ↑ Berwick, Angus; Wilson, Tom (10 November 2022). "Exclusive: Behind FTX's fall, battling billionaires and a failed bid to save crypto". Reuters. Archived from the original on 10 November 2022. Retrieved 18 November 2022.
    26. ↑ Huang, Vicky Ge; Osipovich, Alexander; Kowsmann, Patricia (10 November 2022). "FTX Tapped Into Customer Accounts to Fund Risky Bets, Setting Up Its Downfall". The Wall Street Journal. Archived from the original on 10 November 2022. Retrieved 18 November 2022.
    27. 1 2 Johnson, Katanga (13 November 2022). "FTX Faces Criminal Misconduct Probe by Bahamas Authorities". Bloomberg. Archived from the original on 17 November 2022. Retrieved 15 November 2022.
    28. 1 2 Benny-Morrison, Ava (14 November 2022). "FTX Collapse Probed by Federal Prosecutors in Manhattan". Bloomberg. Archived from the original on 28 November 2022. Retrieved 14 November 2022.
    29. ↑ Yaffe-Bellany, David (14 November 2022). "How Sam Bankman-Fried's Crypto Empire Collapsed". The New York Times. ISSN   0362-4331. Archived from the original on 15 November 2022. Retrieved 18 November 2022.
    30. ↑ Lagerkranser, Philip; Nicolle, Emily (14 November 2022). "Binance's Billionaire CEO Casts Himself as Crypto's New Savior". Bloomberg . Archived from the original on 14 November 2022. Retrieved 14 November 2022.
    31. 1 2 Kharif, Olga (6 November 2022). "Binance To Sell $529 Million of Bankman-Fried's FTT Token". Bloomberg . Archived from the original on 13 November 2022. Retrieved 15 November 2022.
    32. ↑ Ostroff, Caitlin (7 November 2022). "Binance to Sell Holdings of FTX's Token as Relations Between Crypto Exchanges Fray". The Wall Street Journal . Archived from the original on 15 November 2022. Retrieved 15 November 2022.
    33. ↑ Lagerkranser, Philip; Nicolle, Emily; Shukla, Sidhartha (7 November 2022). "Binance's CZ and FTX's Sam Bankman-Fried Trade Barbs Over Twitter". Bloomberg . Archived from the original on 8 November 2022. Retrieved 16 November 2022.
    34. ↑ Melinek, Jacquelyn (7 November 2022). "Here's the rundown on the Binance and FTX fiasco". TechCrunch . Archived from the original on 7 November 2022. Retrieved 16 November 2022.
    35. ↑ Lagerkranser, Philip; Nicolle, Emily; Shukla, Sidhartha (8 November 2022). "Crypto Billionaires' Brawl Triggers Contagion Fears in Markets". Bloomberg . Archived from the original on 17 November 2022. Retrieved 16 November 2022.
    36. 1 2 Kharif, Olga (6 November 2022). "Binance To Sell $529 Million of Bankman-Fried's FTT Token". Bloomberg. Archived from the original on 6 November 2022. Retrieved 7 November 2022.
    37. ↑ Lagerkranser, Philip; Nicolle, Emily; Shukla, Sidhartha (7 November 2022). "Binance's CZ and FTX's Sam Bankman-Fried Trade Barbs Over Twitter". Bloomberg. Archived from the original on 7 November 2022. Retrieved 7 November 2022.
    38. ↑ Melinek, Jacquelyn (7 November 2022). "Here's the rundown on the Binance and FTX fiasco". TechCrunch. Archived from the original on 7 November 2022. Retrieved 7 November 2022.
    39. ↑ Lagerkranser, Philip; Ossinger, Joanna (8 November 2022). "Crypto Billionaires' Brawl Triggers Contagion Fears in Markets". Bloomberg. Archived from the original on 8 November 2022. Retrieved 8 November 2022.
    40. 1 2 Yaffe-Bellany, David (9 November 2022). "Binance Pulls Out of Deal to Acquire Rival Crypto Exchange FTX". The New York Times . Archived from the original on 17 November 2022. Retrieved 16 November 2022.
    41. 1 2 Yang, Yueqi (8 November 2022). "CZ's Binance to Buy Rival FTX After Sam Bankman-Fried Faces Liquidity Crunch". Bloomberg. Archived from the original on 8 November 2022. Retrieved 8 November 2022.
    42. ↑ Ge Huang, Vicky; Ostroff, Caitlin (8 November 2022). "Crypto Exchange Binance Agrees to Acquire Rival FTX". The Wall Street Journal. Archived from the original on 8 November 2022. Retrieved 8 November 2022.
    43. ↑ Singh, Manish (8 November 2022). "Crypto giant Binance to acquire rival FTX following 'liquidity crunch'". TechCrunch. Archived from the original on 8 November 2022. Retrieved 8 November 2022.
    44. ↑ "Binance plans to buy rival FTX in bailout as crypto market crumbles". Binance plans to buy rival FTX in bailout as crypto market crumbles - 'SCMP Tech' News | SendStory Hong Kong. Archived from the original on 11 November 2022. Retrieved 9 November 2022.
    45. ↑ Sigalos, MacKenzie (8 November 2022). "FTX's token plunges 80% on liquidity concerns, wiping out over $2 billion in value". CNBC. Archived from the original on 9 November 2022. Retrieved 17 November 2022.
    46. ↑ Yang, Yueqi; Ghosh, Suvashree (9 November 2022). "FTX's Financial Black Hole Leaves Binance Balking at Rescue Plan". Bloomberg. Archived from the original on 9 November 2022. Retrieved 9 November 2022.
    47. ↑ Beyoud, Lydia; Yang, Yueqi; Kharif, Olga (9 November 2022). "Sam Bankman-Fried's FTX Empire Faces US Probe Into Client Funds, Lending". Bloomberg. Archived from the original on 9 November 2022. Retrieved 9 November 2022.
    48. ↑ Binance Says It Will Walk Away from Deal to Buy FTX Archived 2022-11-09 at the Wayback Machine , Wall Street Journal, 9 November 2022.
    49. ↑ Sigalos, MacKenzie; Rooney, Kate (9 November 2022). "Binance backs out of FTX rescue, leaving the crypto exchange on the brink of collapse". CNBC . Archived from the original on 19 November 2022. Retrieved 17 November 2022.
    50. ↑ Kowsmann, Patricia; Ostroff, Caitlin; Jin, Berber (10 November 2022). "Binance Walks Away From Deal to Rescue FTX". The Wall Street Journal. Archived from the original on 12 November 2022. Retrieved 12 November 2022.
    51. ↑ "Binance ditches deal to rescue rival crypto exchange FTX". Financial Times. 10 November 2022. Archived from the original on 9 November 2022. Retrieved 10 November 2022.
    52. ↑ "Sam Bankman-Fried apologises for FTX crisis". Financial Times. 10 November 2022. Archived from the original on 11 November 2022. Retrieved 11 November 2022.
    53. ↑ "FTX: Cryptocurrency market rocked by near-collapse of exchange". BBC News. 9 November 2022. Archived from the original on 9 November 2022. Retrieved 10 November 2022.
    54. ↑ Shen, Lucinda (10 November 2022). "FTX approaches Kraken amid scramble to find funding". Axios. Archived from the original on 18 November 2022. Retrieved 10 November 2022.
    55. ↑ Massa, Annie (10 November 2022). "Bankman-Fried Vows to 'Give Anything' for Capital as FTX Flails". Bloomberg. Retrieved 10 November 2022.
    56. ↑ Millson, Alex (15 November 2022). "Sam Bankman-Fried Posts Weird Cryptic Tweets After Wealth Wipeout". Bloomberg. Archived from the original on 3 November 2023. Retrieved 15 November 2022.
    57. ↑ "Revealed: FTX's emergency fundraising term sheet". Financial Times. 15 November 2022. Archived from the original on 16 November 2022. Retrieved 16 November 2022.
    58. ↑ "Sam Bankman-Fried says Alameda Research to wind down trading, FTX attempting to raise capital". TechCrunch. 10 November 2022. Archived from the original on 16 November 2022. Retrieved 10 November 2022.
    59. ↑ Sorkin, Andrew Ross; Mattu, Ravi; Warner, Bernhard; Kessler, Sarah; Gandel, Stephen; Merced, Michael J. de la; Hirsch, Lauren; Livni, Ephrat (10 November 2022). "A Reckoning Awaits FTX". The New York Times. Archived from the original on 10 November 2022. Retrieved 10 November 2022.
    60. ↑ Hoffman, Liz; Saacks, Bradley; Matsakis, Louise (9 November 2022). "FTX ditched by Binance while also losing most of its legal and compliance staff | Semafor". Semafor. Archived from the original on 9 November 2022. Retrieved 10 November 2022.
    61. ↑ Ge Huang, Vicky; Osipovich, Alexander; Kowsman, Patricia (10 November 2022). "FTX Tapped Into Customer Accounts to Fund Risky Bets, Setting Up Its Downfall". The Wall Street Journal. Archived from the original on 10 November 2022. Retrieved 10 November 2022.
    62. 1 2 Massa, Annie (10 November 2022). "Inside FTX.US, Employees Are Trying to Sell Assets With Sam Bankman-Fried Away". Bloomberg. Archived from the original on 11 November 2022. Retrieved 10 November 2022.
    63. 1 2 3 4 Yaffe-Bellany, David (29 November 2022). "'No Cooperation': How Sam Bankman-Fried Tried to Cling to FTX". The New York Times. Archived from the original on 29 November 2022. Retrieved 29 November 2022.
    64. ↑ John, Alun; Lang, Hannah (11 November 2022). "Crypto exchange FTX files for bankruptcy as wunderkind CEO exits". Reuters. Archived from the original on 18 November 2022. Retrieved 18 November 2022.
    65. 1 2 Michaels, Dave; Yu, Elaine; Ostroff, Caitlin (12 November 2022). "Alameda, FTX Executives Are Said to Have Known FTX Was Using Customer Funds". The Wall Street Journal. Archived from the original on 12 November 2022. Retrieved 12 November 2022.
    66. ↑ Yaffe-Bellany, David (14 November 2022). "How Sam Bankman-Fried's Crypto Empire Collapsed". The New York times. Archived from the original on 15 November 2022. Retrieved 14 November 2022.
    67. ↑ "FTX Latest: Bahamas Freezes FTX.com Assets, Appoints Liquidator". Bloomberg. 10 November 2022. Archived from the original on 10 November 2022. Retrieved 10 November 2022.
    68. ↑ Berwick, Angus; Sen, Anirban (11 November 2022). "FTX looks for $9.4 bln in rescue funds, Bahamas freezes some assets". Reuters. Archived from the original on 11 November 2022. Retrieved 11 November 2022.
    69. 1 2 "Global regulators circle Sam Bankman-Fried's FTX exchange". Financial Times. 11 November 2022. Archived from the original on 11 November 2022. Retrieved 11 November 2022.
    70. ↑ "Administrative Actions against FTX Japan, Inc". www.fsa.go.jp. Archived from the original on 11 November 2022. Retrieved 11 November 2022.
    71. 1 2 3 4 5 David Yaffe-Bellany (11 November 2022). "Embattled Crypto Exchange FTX Files for Bankruptcy". The New York Times. Archived from the original on 11 November 2022. Retrieved 11 November 2022.
    72. 1 2 "Sam Bankman-Fried's 'Effective Altruism' Team Resigns Amid FTX Meltdown". Gizmodo. 11 November 2022. Archived from the original on 11 November 2022.
    73. 1 2 Hill, Jeremy (11 November 2022). "FTX Goes Bankrupt in Stunning Reversal for Crypto Exchange". Bloomberg. Archived from the original on 11 November 2022. Retrieved 11 November 2022.
    74. 1 2 3 "Sam Bankman-Fried's $32bn FTX crypto empire files for bankruptcy". Financial Times. 11 November 2022. Archived from the original on 11 November 2022. Retrieved 11 November 2022.
    75. ↑ Hill, Jeremy (11 November 2022). "Enron's Liquidator to Oversee FTX's Massive Crypto Bankruptcy". Bloomberg. Archived from the original on 27 April 2023. Retrieved 11 November 2022.
    76. ↑ Yang, Yuequi (12 November 2022). "Sam Bankman-Fried Says He's in the Bahamas, Reuters Reports". Bloomberg. Archived from the original on 30 April 2023. Retrieved 12 November 2022.
    77. 1 2 Saacks, Bradley (12 November 2022). "Some staff of beleaguered FTX crypto exchange leave Bahamas for Hong Kong". Semafor. Archived from the original on 12 November 2022. Retrieved 12 November 2022.
    78. ↑ Biron, Bethany (13 November 2022). "Bahamian police reportedly interviewed Sam Bankman-Fried this weekend, investigations into downfall intensify". Business Insider. Archived from the original on 13 November 2022. Retrieved 14 November 2022.
    79. ↑ Ostroff, Caitlin; Ge Huang, Vicky; Jin, Berber (15 November 2022). "FTX Founder Sam Bankman-Fried Attempts to Raise Fresh Cash Despite Bankruptcy". The Wall Street Journal. Archived from the original on 15 November 2022. Retrieved 15 November 2022.
    80. 1 2 Yu, Elaine; Huang, Vicky Ge (11 November 2022). "FTX Is Investigating a Potential Hack Amid Bankruptcy Filing" . The Wall Street Journal. Archived from the original on 12 November 2022. Retrieved 12 November 2022.
    81. ↑ Ghosh, Suvashree (11 November 2022). "Bankrupt FTX Hit by Mysterious Outflow of About $662 Million". Bloomberg. Archived from the original on 12 November 2022. Retrieved 12 November 2022.
    82. ↑ Nicolle, Emily (12 November 2022). "Kraken to Assist In Probing FTX Unauthorized Crypto Withdrawals". Bloomberg. Bloomberg. Archived from the original on 12 November 2022. Retrieved 12 November 2022.
    83. ↑ Greenberg, Andy (13 November 2022). "The Hunt for the FTX Thieves Has Begun". Wired. Archived from the original on 13 November 2022. Retrieved 14 November 2022.
    84. ↑ Piper, Kelsey (16 November 2022). "Sam Bankman-Fried tries to explain himself". Vox. Archived from the original on 27 December 2022. Retrieved 16 November 2022.
    85. ↑ "USA-v-Powell indictment" (PDF). Ars Technica . Retrieved 3 February 2024.
    86. ↑ Benny-Morrison, Ava; Murphy, Margi (1 February 2024). "FTX's Missing $400 Million Were Stolen in SIM-Swapping Hack, DOJ Says". Bloomberg . Retrieved 3 February 2024.
    87. ↑ Sigalos, MacKenzie (12 November 2022). "Between $1 billion and $2 billion of FTX customer funds have disappeared, SBF had a secret 'back door' to transfer billions: Report". CNBC. Archived from the original on 17 November 2022. Retrieved 17 November 2022.
    88. ↑ Gara, Antoine; Shubber, Kadhim; Oliver, Joshua (12 November 2022). "FTX held less than $1bn in liquid assets against $9bn in liabilities". Archived from the original on 12 November 2022. Retrieved 12 November 2022. Vast gap highlights the dire state of Sam Bankman-Fried's exchange before it collapsed into bankruptcy
    89. ↑ "FTX's Balance Sheet Was Bad". Bloomberg.com. 14 November 2022. Archived from the original on 19 November 2022. Retrieved 22 November 2022.
    90. ↑ Ashworth, Louis; Elder, Bryce (10 November 2022). "Watching tether wither, together". The Financial Times. Archived from the original on 10 November 2022. Retrieved 10 November 2022.
    91. ↑ Hajric, Vildana (11 November 2022). "Crypto Markets Buckle as FTX Bankruptcy Spurs Search for Casualties". Bloomberg. Archived from the original on 12 November 2022. Retrieved 11 November 2022.
    92. ↑ Jagtiani, Sunil; Ossinger, Joanna (13 November 2022). "FTX Latest: Solana Sell-Off Deepens; Bankman-Fried Questioned". Bloomberg. Archived from the original on 14 November 2022. Retrieved 13 November 2022.
    93. ↑ Shukla, Sidhartha; Akhtar, Tanzeel (14 November 2022). "FTX Fiasco Sparks Billions of Dollars of Outflows From Exchanges". Bloomberg. Archived from the original on 3 November 2023. Retrieved 14 November 2022.
    94. 1 2 Levy, Ari; Sigalos, MacKenzie (15 November 2022). "Crypto.com customers worry it could follow FTX, as CEO tries to reassure them everything's fine". CNBC. Archived from the original on 16 November 2022. Retrieved 16 November 2022.
    95. ↑ Thomasson, Lynn; Rao-Coverley, Sujata (13 November 2022). "Big Investors Are Giving Up on Crypto Markets Going Mainstream". Bloomberg. Archived from the original on 3 November 2023. Retrieved 14 November 2022.
    96. ↑ Lang, Hannah; Nishant, Niket; Saini, Manya (29 November 2022). "Crypto lender BlockFi files for bankruptcy, cites FTX exposure". Reuters. Archived from the original on 29 November 2022. Retrieved 29 November 2022.
    97. 1 2 3 4 Gladstone, Alexander; Ge Huang, Vicky; Biswas, Soma (15 November 2022). "BlockFi Prepares for Potential Bankruptcy as Crypto Contagion Spreads". Wall Street Journal. Archived from the original on 15 November 2022. Retrieved 16 November 2022.
    98. ↑ Greifeld, Katherine; Hajric, Vildana (16 November 2022). "Silbert's Once-$10 Billion Crypto Empire Is Showing Cracks". Bloomberg. Archived from the original on 17 November 2022. Retrieved 17 November 2022.
    99. ↑ Shen, Muyao (16 November 2022). "Winklevosses' Gemini Delays Withdrawals on Lending Program". Bloomberg. Archived from the original on 3 November 2023. Retrieved 17 November 2022.
    100. ↑ Ross Sorkin, Andrew; Mattu, Ravi; Warner, Bernhard; Kessler, Sarah; Gandel, Stephen; J. de la Merced, Michael; Hirsch, Lauren; Livni, Ephrat (17 November 2022). "Investor Losses from FTX's Implosion Are Growing". The New York Times. Archived from the original on 17 November 2022. Retrieved 17 November 2022.
    101. ↑ Greifeld, Katherine (14 November 2022). "World's Biggest Crypto Fund Hits Record 42% Discount to Value of Bitcoin It Holds". Bloomberg. Archived from the original on 3 November 2023. Retrieved 17 November 2022.
    102. ↑ "Crypto-focused bank Silvergate plans to wind down following blow from FTX". reuters.com. reuters.com. 10 March 2023. Archived from the original on 9 March 2023. Retrieved 10 March 2023.
    103. ↑ "Crypto-focused bank Silvergate is shutting operations and liquidating after market meltdown". cnbc.com/. cnbc.com/. 10 March 2023. Archived from the original on 4 June 2023. Retrieved 10 March 2023.
    104. ↑ Benoit, David; Ensign, Rachel Louise; Ostroff, Caitlin (12 March 2023). "Signature Bank Is Shut by Regulators After SVB Collapse" . The Wall Street Journal . Archived from the original on 13 March 2023. Retrieved 13 March 2023.
    105. ↑ Sweet, Ken; Rugaber, Christopher; Megerian, Chris; Bussewitz, Cathy (12 March 2023). "US government moves to stop potential banking crisis". Associated Press . Archived from the original on 12 March 2023. Retrieved 13 March 2023.
    106. 1 2 Matt Levine. "Money Stuff: FTX Found the Money". Bloomberg.
    107. ↑ "Bankrupt crypto exchange FTX is under criminal investigation in The Bahamas". CNN . 13 November 2022. Archived from the original on 14 November 2022. Retrieved 14 November 2022.
    108. ↑ Shepardson, David (16 November 2022). "U.S. House committee to hold a hearing on the collapse of FTX". Reuters . Archived from the original on 17 November 2022. Retrieved 16 November 2022.
    109. ↑ Godoy, Jody (16 November 2022). "FTX's Bankman-Fried, Tom Brady and other celebrity promoters sued by crypto investors". Reuters . Archived from the original on 16 November 2022. Retrieved 16 November 2022.
    110. ↑ "FTX Collapse: Tom Brady and Steph Curry's Problems Get Worse". 22 November 2022. Archived from the original on 22 November 2022. Retrieved 22 November 2022.
    111. ↑ Yaffe-Bellany, David; Goldstein, Matthew; Weiser, Benjamin (21 December 2022). "Two Executives in Sam Bankman-Fried's Crypto Empire Plead Guilty to Fraud". New York Times . Archived from the original on 22 December 2022. Retrieved 22 December 2022.
    112. ↑ Queen, Jack (3 January 2023). "Explainer: What happens next in Sam Bankman-Fried's fraud case". Reuters. Archived from the original on 4 January 2023. Retrieved 5 January 2023.
    113. ↑ Roth, Emma (16 November 2022). "Major crypto brokerage Genesis suspends withdrawals in wake of FTX collapse". The Verge . Archived from the original on 16 November 2022. Retrieved 16 November 2022.
    114. 1 2 Shukla, Sidhartha; Ghosh, Suvashree (14 November 2022). "Crypto.com's Sinking Token Stirs Fresh Anxiety After FTX Wipeout". Bloomberg. Archived from the original on 3 November 2023. Retrieved 14 November 2022.
    115. ↑ Levy, Ari; Sigalos, MacKenzie (15 November 2022). "Crypto.com customers worry it could follow FTX, as CEO tries to reassure them everything's fine". CNBC. Archived from the original on 16 November 2022. Retrieved 16 November 2022.
    116. ↑ "FTX". Sequoia Capital US/Europe. Archived from the original on 9 November 2022. Retrieved 9 November 2022.
    117. ↑ "FTX". Lightspeed Venture Partners. Archived from the original on 9 November 2022. Retrieved 17 November 2022.
    118. ↑ Li, Selena; Westbrook, Tom; Howcroft, Elizabeth; Howcroft, Elizabeth (9 November 2022). "Cryptocurrencies fall after FTX-Binance turmoil spooks investors". Reuters . Archived from the original on 9 November 2022. Retrieved 9 November 2022.
    119. ↑ Hatheway, Larry; Friedman, Alex (10 November 2022). "The Midterms' Red Ripple Delivers Uncertainty to the Markets". Barrons. Archived from the original on 9 November 2022. Retrieved 10 November 2022.
    120. ↑ McBride, Sarah (9 November 2022). "Sequoia Capital Writes Down Entire Value of Its FTX Stake". Bloomberg. Archived from the original on 17 November 2022. Retrieved 10 November 2022.
    121. ↑ Stone, Brad (14 November 2022). "FTX Implodes, and a Top VC Backer Falls on Its Face". Bloomberg. Archived from the original on 17 November 2022. Retrieved 14 November 2022.
    122. ↑ "The downfall of FTX's Sam Bankman-Fried sends shockwaves through the crypto world". NPR. 14 November 2022. Archived from the original on 14 November 2022. Retrieved 15 November 2022.
    123. ↑ Nguyen, Britney (10 November 2022). "FTX investor Sequoia removed its glowing 13,000-word profile of Sam Bankman-Fried and replaced it with somber note after its investment cratered to $0". Business Insider. Archived from the original on 12 November 2022. Retrieved 15 November 2022.
    124. ↑ Rajagopal, Divya (10 November 2022). "Ontario Pension says any loss from FTX investment to have limited impact". Reuters. Archived from the original on 10 November 2022. Retrieved 11 November 2022.
    125. ↑ Greifeld, Katherine; Hajric, Vildana (16 November 2022). "Silbert's Once-$10 Billion Crypto Empire Is Showing Cracks". Bloomberg. Archived from the original on 17 November 2022. Retrieved 17 November 2022.
    126. ↑ Shen, Muyao (16 November 2022). "Winklevosses' Gemini Delays Withdrawals on Lending Program". Bloomberg. Archived from the original on 3 November 2023. Retrieved 17 November 2022.
    127. ↑ Sigalos, MacKenzie; Rizzo, Lillian; Goswami, Rohan (28 November 2022). "Crypto firm BlockFi files for bankruptcy as FTX fallout spreads". CNBC. Archived from the original on 28 November 2022. Retrieved 28 November 2022.
    128. ↑ Muyao, Shen (13 November 2022). "Crypto Hedge Fund Galois Confirms $40 Million Exposure to FTX". Bloomberg. Archived from the original on 28 April 2023. Retrieved 14 November 2022.
    129. 1 2 Lukpat, Alyssa (10 November 2022). "Tom Brady. Stephen Curry. Shaq. See the Celebrities With Ties to FTX". The Wall Street Journal. Archived from the original on 14 November 2022. Retrieved 14 November 2022.
    130. ↑ "VCs Consider Suing Bankman-Fried". The Information. Archived from the original on 17 November 2022. Retrieved 16 November 2022.
    131. ↑ Parmar, Hema (11 November 2022). "Scaramucci's SkyBridge Is Trying to Buy Back FTX's 30% Stake". Bloomberg. Archived from the original on 11 November 2022. Retrieved 11 November 2022.
    132. ↑ Weisenthal, Joe; Alloway, Tracy (9 November 2022). "Short Seller Jim Chanos Warns the Crypto Crackdown Is Coming Now". Bloomberg. Archived from the original on 9 November 2022. Retrieved 10 November 2022.
    133. 1 2 Wilson, Harry (10 November 2022). "Jefferies CEO Says He Offered FTX's Bankman-Fried Rescue Advice in July". Bloomberg. Archived from the original on 10 November 2022. Retrieved 10 November 2022.
    134. ↑ Roose, Kevin (9 November 2022). "Is This Crypto's Lehman Moment?". The New York Times. Archived from the original on 10 November 2022. Retrieved 11 November 2022.
    135. ↑ Chipolina, Scott (11 November 2022). "FT Cryptofinance: Crypto's Lehman moment". Financial Times. Archived from the original on 11 November 2022. Retrieved 11 November 2022.
    136. ↑ Anstey, Chris (11 November 2022). "FTX Meltdown Has 'Whiffs' of Enron-Like Scandal, Summers Says". Bloomberg. Archived from the original on 17 November 2022. Retrieved 11 November 2022.
    137. ↑ Doherty, Katherine; Almeida, Isis (14 November 2022). "FTX's Downfall Shows CFTC Needs More Crypto Sway, Chairman Says". Bloomberg. Archived from the original on 3 November 2023. Retrieved 14 November 2022.
    138. ↑ Chatterjee, Rex (6 December 2022). "The FTX Files: A Primer On The Chapter 11 Case • Titan Grey". Titan Grey. Archived from the original on 13 January 2023. Retrieved 13 January 2023.
    139. ↑ Lenker, Maureen Lee. "T.J. Miller Zooms into Comic-Con in Crypto-scammer cosplay". EW.com. Archived from the original on 23 July 2023. Retrieved 23 July 2023.
    140. ↑ Kulish, Nicholas (13 November 2022). "FTX's Collapse Casts a Pall on a Philanthropy Movement". The New York Times. Archived from the original on 15 November 2022. Retrieved 19 November 2022.
    141. ↑ Samuel, Sigal (16 November 2022). "Effective altruism gave rise to Sam Bankman-Fried. Now it's facing a moral reckoning". Vox. Archived from the original on 18 November 2022. Retrieved 19 November 2022.
    142. ↑ Todd, Benjamin (28 July 2021). "Is effective altruism growing? An update on the stock of funding vs people". 80,000 Hours. Archived from the original on 4 April 2022. Retrieved 19 November 2022.
    This page is based on this Wikipedia article
    Text is available under the CC BY-SA 4.0 license; additional terms may apply.
    Images, videos and audio are available under their respective licenses.