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Euronews – FTX's collapse: a timeline of how the crypto giant imploded
webTangentially relevant to AI safety as the FTX collapse intersects with the effective altruism community, which has historically funded AI safety research; useful background for understanding broader institutional trust and governance failures.
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Importance: 18/100news articlenews
Summary
This article provides a chronological timeline of the collapse of FTX, the cryptocurrency exchange founded by Sam Bankman-Fried, covering key events from its rise to its bankruptcy filing and subsequent legal proceedings. It documents the rapid unraveling of one of the largest crypto exchanges and the fraud that underpinned it. The piece contextualizes the collapse within the broader crypto industry and regulatory landscape.
Key Points
- •FTX was once one of the world's largest crypto exchanges, valued at $32 billion, before its sudden collapse in November 2022.
- •The collapse was triggered by revelations that FTX customer funds had been misappropriated by its sister trading firm Alameda Research.
- •Sam Bankman-Fried was arrested, tried, and convicted of multiple fraud and conspiracy charges related to the collapse.
- •The FTX failure prompted renewed calls for stricter cryptocurrency regulation and oversight globally.
- •The timeline illustrates systemic governance failures, lack of oversight, and ethical misconduct at the highest levels of the organization.
Cited by 1 page
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| FTX Collapse and EA's Public Credibility | -- | 50.0 |
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FTX's collapse: A timeline of how the crypto giant imploded | Euronews
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By  Euronews and AP
Published on 09/05/2024 - 10:54 GMT+2 • Updated
10:54
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FTX has announced it will be paid back most of its customers two years after it collapsed. Here's how we got to that point.
Once one of the largest cryptocurrency exchanges in the world before its monumental collapse two years ago, FTX said this week that nearly all of its customers will receive the money back that they are owed.
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FTX said in a court filing in the United States late on Tuesday that it owes about $11.2 billion (€10.4 billion) to its creditors.
The exchange estimates that it has between $14.5 billion (€13.5 billion) and $16.3 billion (€15.1 billion) to distribute to them.
How did we get to this point? Here is a timeline of what led up to this week's announcement after an implosion at FTX kicked off what many had expected to become a "crypto winter".
Related
FTX crypto 'king' Bankman-Fried guilty of 'one of the biggest financial frauds in American history'
2022
November 2: Coindesk reports Alameda Reseach, Sam Bankman-Fried's cryptocurrency trading firm, holds a large amount of FTT, a token issued by FTX, suggesting the finances of the two are intertwined and Alameda faces a cash crunch. The report spooks participants in the crypto market.
November 6: Rival cryptocurrency exchange Binance announces that the firm plans to sell all its holdings in FTT. The price of FTT tanks.
November 8: Binance founder and CEO Changpeng Zhao said his company had signed a letter of intent to buy FTX because the smaller exchange was experiencing a "significant liquidity crunch". That deal would be contingent, however, on a look at the books at FTX.
The price for Bitcoin tumbles 13 per cent.
November 9: Cryptocurrency prices plunge and after getting a closer look at the finances of FTX, Binance retreated and said there would be no acquisition. "In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to he
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