FTX collapse: how an exchange failed in nine days
The essentials in 30 seconds
- The FTX collapse ran from a CoinDesk report on 2 November 2022 to a Delaware bankruptcy filing on 11 November 2022.
- CoinDesk reported that 40% of Alameda Research’s $14.6 billion in assets was FTT, a token created by FTX.
- More than 100 affiliates filed together with FTX, and reports cite an $8 billion hole.
- A jury convicted Sam Bankman-Fried on 7 counts on 2 November 2023.
- 5 pages cover dates, causes, people, customer funds and Alameda Research.
The FTX collapse is the fastest large exchange failure in crypto crash history: 9 days separate the first public report on 2 November 2022 from the bankruptcy filing on 11 November 2022. This guide sits under the crypto collapses overview and gives the sequence, the causes in brief, and the court outcome as of October 2026. 5 detailed pages follow. This page is general information, not investment advice.
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How did the FTX collapse unfold from start to finish?
On 2 November 2022, CoinDesk reported that 40% of Alameda Research’s $14.6 billion in assets was FTT, the token created by FTX. Confidence fell within hours, and customers asked for their money in large numbers. On 8 November, FTX and Binance announced a nonbinding letter of intent for a purchase, and on 9 November Binance stepped back.
FTX stopped processing withdrawals on 9 November. Reports cite $6 billion in customer withdrawals during those days. On 11 November 2022, FTX, FTX US, Alameda Research and more than 100 affiliates filed for bankruptcy in Delaware. John J. Ray III replaced Sam Bankman-Fried as chief executive after the filing.
Where can you find every date of the FTX collapse?
A short sequence hides many dated events: the token sell-off, the Binance letter, the withdrawal stop, the filing, and the later arrest and trial. A reader who needs the exact order will find each step listed with its date.
The page When did FTX collapse? A dated timeline gives that list day by day. It answers the question of the exact date, and this guide keeps to the main arc so you can see the whole event first. Use that page when you need a date for a report, a course or a due diligence file.
Why did the FTX exchange fail, in brief?
The sources point to 3 linked causes. Customer deposits moved to a related trading firm. A large part of that firm’s assets sat in a token that FTX itself created. When the token fell and customers asked for withdrawals, the cash to repay them was missing.
The page Why did FTX collapse? Customer funds, Alameda and missing controls separates these causes and shows the control gaps behind them. A control is a rule that stops one person or one team from moving customer money alone.
What did a court decide about Sam Bankman-Fried and FTX?
Federal prosecutors charged Sam Bankman-Fried with 7 criminal counts, including wire fraud, commodities fraud, securities fraud and money laundering. He was arrested in the Bahamas on 12 December 2022. A jury found him guilty on all 7 counts on 2 November 2023, and he received a 25 year prison sentence in March 2024.
Caroline Ellison, who led Alameda Research, pleaded guilty on 21 December 2022 and testified at the trial. The page on Sam Bankman-Fried and FTX keeps to documented court facts, and the case in brief explains each charge in plain words. His appeal and a petition to the US Supreme Court followed, and the page reports their status as of October 2026.
How much customer money did the FTX collapse put at risk?
The New York Times reported that the exchange owed as much as $8 billion at the time of the filing. The Financial Times reported about $9 billion in liabilities against $900 million in liquid assets. These are press reports of early figures, and later court filings refined them.
The page on FTX customer funds and the $8 billion hole explains what such a hole shows about custody. The lesson for any reader is the same: ask where the money sits before you deposit it, and ask who can move it without a second signature.
What role did the FTT token and Binance play in the FTX collapse?
FTT was the token created by FTX. Binance held 23 million FTT, worth about $529 million, in early November 2022, and FTT lost 80% of its value on 8 November. A falling token matters when a firm counts that token as an asset, because the asset shrinks at the moment cash is needed.
Binance announced a nonbinding letter of intent on 8 November, then withdrew on 9 November, citing reports of mishandled customer funds and pending investigations. The episode shows how fast a rescue can disappear once a firm lists its own token as collateral and customers start to withdraw.
What role did Alameda Research play in the FTX collapse?
Alameda Research was a trading firm founded in November 2017, and FTX opened in 2019 under the same founder. The Wall Street Journal reported on 10 November 2022 that Alameda owed FTX some $10 billion. Close ties between a trading firm and an exchange put customer money one step from risk trading.
The page Alameda Research and FTX looks at that shared balance sheet. It explains why exchanges separate their own trading from customer deposits, what a reader can check in an exchange’s published reports, and which questions a customer can put to the platform in writing.
What did the FTX collapse change for crypto users?
Users now ask exchanges for audited proof of reserves, clear custody rules and a named regulator. Lenders that had dealt with FTX, such as BlockFi, stopped withdrawals within days. Exposure to one exchange reached firms far from its customers, and that is why a lender or a bank that never listed FTX still felt the shock. Reading counterparties is now part of basic diligence.
The EQOS Asia method page shows how a structured score reads such exposure, and the contact page lets you bring a concrete case. For other failures of 2022, return to the overview of crypto collapses.
See also in this guide
Frequently asked questions
When did the FTX collapse happen?
The FTX collapse ran from 2 November 2022, when CoinDesk published its report on Alameda Research, to 11 November 2022, when FTX filed for bankruptcy in Delaware. FTX stopped processing withdrawals on 9 November. The dated timeline page lists every step, with the source for each date, and it separates the corporate events from the legal ones.
Why did FTX collapse?
Customer deposits moved to a related trading firm, and a large share of that firm’s assets was a token created by FTX. When the token fell and customers asked for withdrawals, FTX lacked the cash to repay them. Control gaps allowed this, and the causes page explains them in order.
What happened to Sam Bankman-Fried?
He was arrested in the Bahamas on 12 December 2022. A jury found him guilty on all 7 counts on 2 November 2023, and he was sentenced to 25 years in prison in March 2024.
How much money did FTX customers lose?
The New York Times reported that FTX owed as much as $8 billion at the filing. Later court filings refined the numbers, so a reader should check the date of any figure before quoting it. The dedicated page on customer funds explains what the hole shows about custody.
Test your knowledge
1. What did CoinDesk report on 2 November 2022?
- Alameda held 40% of its $14.6 billion assets in FTT
- Binance bought FTX
- FTX was approved by the SEC
Show the answer
Alameda held 40% of its $14.6 billion assets in FTT.
2. Where did FTX file for bankruptcy?
- London
- Delaware
- Tokyo
Show the answer
Delaware.
3. Who replaced Sam Bankman-Fried as chief executive?
- Caroline Ellison
- Mark Karpeles
- John J. Ray III
Show the answer
John J. Ray III.
4. How many counts did the jury find against Sam Bankman-Fried?
- 7
- 2
- 12
Show the answer
7.
5. Which document do users now ask exchanges for?
- A price forecast
- Audited proof of reserves
- A logo file
Show the answer
Audited proof of reserves.
About the author
Stéphane Jambu
President, EQOS Forecast Asia
Stéphane Jambu leads EQOS Forecast Asia and works as a consultant in e-commerce, search visibility, and AI. LinkedIn profile
Sources: EQOS Asia method page (eqos-asia.com/method.html) and contact page (eqos-asia.com/contact.html), en.wikipedia.org/wiki/Collapse_of_FTX, en.wikipedia.org/wiki/Sam_Bankman-Fried, en.wikipedia.org/wiki/BlockFi, consulted on 23 October 2026. Page updated on 23 October 2026.