FTX

FTX was a Bitcoin company in the Exchanges category, founded in 2019 by Sam Bankman-Fried (SBF), Gary Wang.

The Idea

A digital asset derivatives exchange with advanced trading products, leverage, and tokenized stocks. SBF left Jane Street Capital to found Alameda Research. Later, SBF launched FTX out of his trading firm Alameda Research in 2019.

Early Traction

FTX grew fast into a top exchange behind blue-chip VC backing and celebrity endorsements, but it was fraudulent from the start: sister firm Alameda was secretly exempt from FTX's risk controls and traded with customer deposits, against FTX's own users.

Peak Stats

At its peak FTX reached a $32B valuation, SBF's net worth hit roughly $26B, and Alameda managed billions and ranked among the largest trading firms in digital assets, though much of that rested on FTX customer funds.

Status Today

Failed. Filed for bankruptcy November 11, 2022 alongside Alameda Research and 100+ affiliated entities. Up to $9B in customer deposits were missing, secretly funneled to Alameda. SBF arrested December 2022, convicted of wire fraud, conspiracy, and money laundering, sentenced to 25 years in prison.