Collapse of FTX and the Fall of Crypto’s “King”

Once hailed as the “crypto king,” Sam Bankman-Fried saw his reputation shattered when his company, FTX, abruptly collapsed in November 2022. Customers worldwide found themselves unable to access their funds as the cryptocurrency exchange suddenly failed.

One investor from Canada recounted trying to withdraw money late at night, only to see the transaction hang indefinitely: “I tried to withdraw an amount, and it would spin and say, your withdrawal is pending. I checked again and again, but it never went through.”

Meanwhile, inside FTX, employees were overwhelmed by chaos. Caroline Papadopoulos, who was part of the company’s accounting team, described the internal panic: “All we knew was there was a run on the bank, and suddenly, money was missing. Nobody knew who to trust.”

This week, an investigation on Reveal offers an in-depth look into FTX’s rapid decline through prison interviews with Bankman-Fried, his parents, insiders, and affected customers. The episode uncovers details of the frantic week that led to the company’s bankruptcy, which has been estimated to cost nearly $1 billion—a figure making it one of the most expensive collapses in history.

For more detailed information, read the FTX bankruptcy estate’s official statement.

FTX founder Sam Bankman-Fried arriving at federal court in New York in February 2023.