What happened to FTX & Sam Bankman-fried?

The bankruptcy of the crypto giant FTX and the resignation of its founder, Sam Bankman-Fried, has left customers in limbo and investors writing off what once looked like the next big thing in tech. And it happened in a matter of days. But in the complex world of crypto, such a collapse can be hard to parse. Here’s the basics of what went down:

Why did FTX collapse?

In November, a series of revelations and Machiavellian chess moves by Binance, FTX's biggest competitor, led to the collapse of FTX, the dethroning of Bankman-Fried as a leader in not only the crypto world, but also the philanthropic niche known as effective altruism.

Is FTX a reputable cryptocurrency exchange?

Over the past three years, FTX has come to be widely regarded as a reputable exchange, despite not submitting to U.S. regulation. Bankman-Fried has himself become globally influential, thanks to his thoughts on cryptocurrency regulation and his financial support for U.S. electoral candidates – not necessarily in that order.

How much cryptocurrency has FTX & Alameda secured?

Ray wrote that the company has thus far secured $740 million of cryptocurrency held by the various companies that made up FTX and Alameda, a number that is only a “fraction” of what they hope to recover.