What Happened to FTX? ⚠️ Scandal

FTX was a cryptocurrency exchange that operated from 2019 to 2022. Backed by venture funding and aggressive marketing, it promoted spot and derivatives trading and its native FTT token, quickly becoming one of the most visible brands in digital assets.

Headquartered in the Bahamas, FTX served retail and institutional traders with leverage products and perpetual futures, plus staking and tokenized exposures. By January 2022, private-market reports placed FTX’s peak valuation at about $32 billion.

On November 11, 2022, FTX and related entities filed for Chapter 11 bankruptcy, following a severe liquidity crisis and allegations concerning customer funds. Withdrawals were halted and operations wound down under court supervision as new management began restructuring and recovery efforts.

After the collapse, many users moved to alternative exchanges or to self-custody. The event intensified discussion of risk controls, transparency, and consumer protection in crypto, and it remains a touchpoint in debates over exchange governance and regulation.