Bahamas-based FTX filed for bankruptcy on Friday after a rush of customer withdrawals earlier this week. A rescue deal with rival exchange Binance fell through, precipitating crypto’s highest-profile collapse in recent years.
According to the myth, before the age of thirty, Bankman-Fried made himself one of the world’s richest people by building the second largest cryptocurrency exchange, FTX, as well as its American arm, FTX.US, while simultaneously running Alameda Research, his ostensibly lucrative trading firm.
Summary of the FTX Ponzi Scheme in 99 Seconds
FTX, one of the world’s largest cryptocurrency exchange platforms, is in major financial turmoil. At its peak, FTX was valued at $32 billion. The company filed for bankruptcy on Nov. 11 after competing offshore crypto exchange, Binance, backed out of a deal to acquire it and users withdrew around $6 billion in funds.
FTX began within Alameda Research, a trading firm founded by Bankman-Fried and others in 2017 in Berkeley, California. FTX is an abbrevation of “Futures Exchange”. Changpeng Zhao of Binance purchased a 20% stake in FTX half a year after Bankman-Fried and Wang started the firm.