FAQs
On 31 January, FTX announced it would not reopen its exchange and would instead liquidate all its assets. It has promised to pay its account holders the value of the deposited crypto in dollars.
Who is investigating FTX? ›
Unabomber Prosecutor Tapped to Lead Fresh FTX Investigation
The US Justice Department's bankruptcy unit has picked a former federal prosecutor who led the government's case against the Unabomber to conduct a new outside investigation of FTX and its bankruptcy law firm.
Did the SEC charge Sam Bankman-Fried with defrauding FTX investors? ›
filed Dec. 13, 2022) The Securities and Exchange Commission charged Samuel Bankman-Fried with orchestrating a scheme to defraud equity investors in FTX Trading Ltd. (FTX), the crypto trading platform of which he was the CEO and co-founder.
How much did FTX investors lose? ›
Kaplan found that FTX customers lost $8 billion, FTX's equity investors lost $1.7 billion, and that lenders to the Alameda Research hedge fund Bankman-Fried founded lost $1.3 billion. He imposed an $11 billion forfeiture order and authorized the government to repay victims with seized assets.
Where did all of FTX money go? ›
So where did all the money go? FTX spent big on investments in technology startups. For example, FTX paid $1.15 billion to acquire around 20% of Genesis Digital Assets, a crypto miner that ran a number of mining facilities in Kazakhstan. The firm spent $243 million on real estate in the Bahamas…
How many victims were there of FTX? ›
Even as the bankruptcy estate promises to pay back customers in full, many of FTX's thousands of victims (reportedly up to a million) argue that their crypto stakes have been significantly undervalued by the exchange's new leadership team.
Who stole money from FTX? ›
The government relied heavily on the testimony of three former members of Bankman-Fried's inner circle, his top executives including his former girlfriend, Caroline Ellison, to explain how Bankman-Fried used Alameda Research to siphon billions of dollars from customer accounts at FTX.
Who lost money on FTX? ›
Evan Luthra, an app developer, entrepreneur and angel investor, told CNBC he lost $2 million in the collapse of FTX. Luthra said he knew when FTX filed for bankruptcy protection in late 2022 that he wouldn't have “access to any of this money for the next few years.” He continues to speak at crypto conferences.
What celebrities were involved with FTX? ›
Larry David starred in an FTX Super Bowl ad that framed crypto as a world-historical innovation on par with the wheel or the lightbulb. Shaquille O'Neal asked would-be investors: “I'm all in. Are you?” Other household names — Steph Curry, David Ortiz, Shohei Ohtani, Naomi Osaka, Kevin “Mr.
Who went to jail for FTX? ›
Sam Bankman-Fried sentenced to 25 years in prison for orchestrating FTX fraud. The former cryptocurrency guru was convicted on seven criminal counts in November. Sam Bankman-Fried was sentenced Thursday to 25 years in prison for his role in defrauding users of the collapsed cryptocurrency exchange FTX.
NEW YORK (AP) — Crypto entrepreneur Sam Bankman-Fried was sentenced Thursday to 25 years in prison for a massive fraud that unraveled with the collapse of FTX, once one of the world's most popular platforms for exchanging digital currency.
How did Sam Bankman defraud? ›
“He stole money from customers who entrusted it to him; he lied to investors; he sent fabricated documents to lenders; he pumped millions of dollars in illegal donations into our political system; and he bribed foreign officials.
Did everyone using FTX lose their money? ›
Rees is one of more than an estimated 1 million customers potentially facing losses after FTX, one of the largest crypto exchanges at the time, suddenly collapsed and filed for bankruptcy in November. It soon emerged that customer funds had gone missing.
How much of FTX money is recovered? ›
A progress report at the end of August put the amount recovered since the bankruptcy filing at $7.8 billion, compared with $9 billion claimed by the platform's creditors.
What caused FTX to collapse? ›
What happened to FTX? FTX and FTX.US crashed due to a lack of liquidity and mismanagement of funds, followed by a large volume of withdrawals from rattled investors. The value of FTT plummeted, taking other coins down with it including Ethereum and Bitcoin, which reached a two-year low on Nov. 9, 2022.
Can people get their money out of FTX? ›
If you lost funds to FTX when it declared bankruptcy, you are eligible to file a customer claim. The easiest way to file a claim is by using the online portal that FTX and its debtors have established at claims.ftx.com. The FTX claims portal has a multistep process that you must complete to submit your claim.
How to claim FTX money? ›
FILE A CLAIM VIA MAIL
Please file proof(s) of claim and/or interest via US Mail or other hand delivery system. Submission of claim and/or interest forms via email and/or facsimile transmission is not permitted. You must file an originally executed proof of claim and/or proof of interest.
How will FTX repay? ›
FTX said in January that it expects to pay customers "in full," but that statement came with a major caveat: It will value customer claims based on the price of crypto in November 2022, and customers will receive no benefit from a significant rise in crypto prices since that date.
