FTX filed for Chapter 11 bankruptcy in the United States on November 11, 2022.
FTX Trading Ltd. and affiliated companies sought bankruptcy protection after a rapid loss of customer confidence and a liquidity crisis. The crisis followed reports about the relationship between FTX and Alameda Research, a trading firm founded by FTX co-founder Sam Bankman-Fried.
Customers rushed to withdraw funds, but the exchange could not meet all requests. John J. Ray III became chief executive during the bankruptcy proceedings and described serious problems with corporate controls and record-keeping.
FTX had been one of the world’s largest cryptocurrency exchanges and had sponsored major sports and entertainment properties. Its collapse became a major event in the history of digital-asset regulation and risk management. In 2024, Bankman-Fried was sentenced to 25 years in prison for fraud and related crimes.