In November 2022, FTX — once the world’s third-largest cryptocurrency exchange — collapsed, leaving more than one million investors trapped and billions of dollars missing.
Investigations revealed that FTX secretly funneled customer deposits to its sister company, Alameda Research, which used the funds for risky trades, political donations, and luxury spending. When users rushed to withdraw their money, the exchange faced a massive liquidity crisis and halted withdrawals.
- Estimated customer losses: $8–10 billion.
- More than 1 million users unable to access their funds.
- Founder and CEO Sam Bankman-Fried was later convicted of fraud and money laundering in the United States.
The FTX scandal stands as one of the largest financial frauds in history and a stark reminder that even the most trusted exchanges can betray retail investors.
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