In November 2022, cryptocurrency exchange FTX suddenly collapsed, marking one of the biggest scandals in the industry’s history.

 In November 2022, cryptocurrency exchange FTX suddenly collapsed, marking one of the biggest scandals in the industry’s history. Founder Sam Bankman-Fried (SBF) was found to have secretly funneled customer funds to his affiliated trading firm, Alameda Research, resulting in massive losses. The total damage is estimated to exceed $8 billion, with millions of users losing access to their assets. Initially hailed as a promising entrepreneur, SBF’s downfall dealt a major blow to trust in cryptocurrencies. The incident triggered a global push for stricter regulations and highlighted the risks of centralized exchanges and the need for transparency. It also reignited interest in decentralized finance (DeFi) as a safer alternative. FTX’s collapse has been called the “Lehman Shock” of the crypto world, with lasting impacts on regulatory frameworks and efforts to restore market confidence.


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