• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

FTX Collapse and Its Impact on the Crypto Market

user avatar

by Giorgi Kostiuk

8 months ago

In late 2022, the rapid collapse of FTX, once a leading crypto exchange, shocked the entire digital currency sector.

FTX's Rise

Founded by Sam Bankman-Fried in 2019, FTX quickly became one of the most renowned crypto exchanges due to aggressive marketing and unique financial products. The platform was known for its innovative products, low fees, and user-friendliness.

Crisis Emergence

In November 2022, a leaked balance sheet from Alameda Research, FTX's sister firm, revealed that much of its assets were concentrated in FTX's native token (FTT). This sparked concerns about liquidity and the interdependence between FTX and Alameda.

Collapse and Its Impact

The announcement by Binance's CEO about liquidating its FTT holdings caused panic. FTX suspended withdrawals and filed for Chapter 11 bankruptcy. Investigations revealed FTX had used billions in customer funds to cover Alameda's losses. The founder of FTX was charged with fraud, money laundering, and conspiracy.

The collapse of FTX became a significant event in crypto history, highlighting trust issues and the risks of centralization in a decentralized world.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

HYPE Revenue Strength Supports Market Interest

chest

HYPE generated significant revenue, placing it among the top-performing chains and supporting trader interest.

user avatarFilippo Romano

HYPE Trades Near Structural Pivot Amid Revenue Strength

chest

HYPE is currently trading near a crucial structural level, with traders analyzing its recent correction and projected recovery path.

user avatarEmily Carter

Peter Schiff Challenges President Trump to a Debate on the Economy

chest

Financial commentator Peter Schiff publicly challenged President Trump to a debate on the US economy after Trump attacked him for discussing the affordability crisis.

user avatarTomas Novak

GeeFi Offers Unique Utility-Driven Features

chest

GeeFi is attracting investors with its unique utility-driven features, offering a comprehensive platform for asset management, token swapping, and chain bridging across more than 14 networks.

user avatarKaterina Papadopoulou

OpenAI's Strategic Shift to Retain AI Market Dominance

chest

OpenAI's recent strategic shift focuses on core product enhancements to maintain its dominance in the AI market.

user avatarLeo van der Veen

Coinbase's Custom M2 Index Indicates Positive Trends for Bitcoin

chest

Coinbase's Custom Global M2 Index shows a significant upward trend, suggesting a potential recovery for Bitcoin as liquidity expands.

user avatarMaya Lundqvist

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.