FTX filed for bankruptcy in November 2022 after customer withdrawals surged.
FTX Trading and affiliated companies filed for Chapter 11 bankruptcy protection on November 11, 2022. The filing followed a rapid loss of confidence in the cryptocurrency exchange, a surge in withdrawal requests, and revelations about the financial relationship between FTX and Alameda Research.
John J. Ray III became chief executive during the bankruptcy process. The proceedings involved locating assets, examining customer claims, and investigating how company funds and digital assets had been managed. FTX founder Sam Bankman-Fried was later convicted in the United States on fraud and conspiracy charges.
FTX is often confused with Celsius Network and Voyager Digital, which were crypto businesses that also entered bankruptcy in 2022. FTX was primarily a cryptocurrency exchange, while Celsius was a lending platform and Voyager was a broker.