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🪙 FTX collapse

FTX collapse story -- November 2022 to the 2023 verdict

How FTX halted withdrawals in November 2022, entered Chapter 11, and ended with Sam Bankman-Fried's 2023 Manhattan fraud conviction and 2024 sentence.

The public story is compressed: a leaked balance sheet, a run, a bankruptcy, cooperating pleas, and a one-month trial.

The beats below follow CoinDesk, the Delaware petitions, and the SDNY docket.

Beats

  1. Exchange, token, trading firm

    FTX grew as a crypto exchange with a related token (FTT) and a sibling trading firm, Alameda. Celebrity marketing and political donations made the founder a public figure.

  2. A balance sheet goes public

    CoinDesk's 2 November 2022 article on Alameda's holdings made the concentration of FTT and related assets a market fact. Binance's response accelerated withdrawals.

  3. Chapter 11 and a new CEO

    On 11 November 2022 FTX entities filed bankruptcy. John J. Ray III took control and told Congress the record-keeping was among the worst he had seen.

  4. Arrest and cooperators

    Bankman-Fried was arrested in the Bahamas in December 2022. Ellison, Wang, and Singh pleaded guilty and aligned with the government.

  5. Verdict and 25 years

    The jury convicted on 2 November 2023. Kaplan imposed 25 years on 28 March 2024. The estate continued a separate recovery process.

The story on the public record is a completed fraud conviction plus a bankruptcy that later surprised many on recovery -- two ledgers, one verdict.

Public-record encyclopedia. Not legal advice. Not a how-to. Graphic detail is withheld. Wars belong in a separate atlas.

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