What is the purpose of FTX?

FTX is one of the world’s largest cryptocurrency exchanges. It enables customers to trade digital currencies for other digital currencies or traditional money, and vice versa. It is based in the Bahamas and was run by Mr. Bankman-Fried. It has spent millions of dollars lobbying U.S. legislators to institute crypto-friendly regulation.

How much money is missing from FTX?

At least one billion dollars of customer funds are missing from failed crypto exchange FTX, according to reporting by Reuters. Sam Bankman-Fried —the founder and CEO of FTX—covertly transferred $10 billion of customer funds from FTX to his own trading company Alameda Research, the outlet reported.

What caused FTX to collapse?

FTX, backed by elite investors like BlackRock and Sequoia Capital, rapidly became one of the biggest crypto exchanges in the world. Its collapse was preceded by the decision to lend billions of dollars’ worth of customer assets to fund risky bets by Alameda, Bankman-Fried’s crypto hedge fund, The Wall Street Journal reported on Thursday.

What happened to FTX?

The cryptocurrency exchange FTX has filed for bankruptcy amid revelations that it lent billions in customer assets to an affiliated trading firm called Alameda Research. Now its owner—a prominent Democratic donor and supporter of cryptocurrency regulation—is reportedly under criminal investigation.