Which cryptocurrency exchange collapsed in November 2022? FTX. The Bahamas-based exchange entered bankruptcy after a rush of customer withdrawals exposed an approximately $8 billion shortfall in its accounts.
FTX had been one of the world’s largest crypto exchanges, with more than one million users and a reputation for rapid growth. The crisis intensified after reporting showed that affiliated trading firm Alameda Research held a large amount of FTX’s exchange token, FTT. Customers then rushed to withdraw funds, but the exchange could not meet the demand.
On November 11, 2022, FTX, Alameda Research, and more than 100 related companies filed for bankruptcy. Founder and CEO Sam Bankman-Fried resigned and was later convicted in the United States on fraud-related charges. The collapse became a landmark example of risks involving customer funds, related-party dealings, and weak corporate controls.
A common mix-up is confusing FTX with other major exchanges such as Binance, Coinbase, or Kraken. Binance helped trigger the withdrawal crisis by announcing plans to sell its FTT holdings, but Binance itself did not collapse in November 2022.