Wire fraud Securities fraud Misappropriation
FTX collapse and Alameda misuse of customer funds
FTX rapidly became a major crypto exchange before a liquidity crisis revealed alleged misuse of customer funds and accounting gaps.
May 1, 2019 - Nov 11, 2022
Summary
FTX presented itself as a regulated, risk-managed exchange. Investigations later alleged that customer assets were diverted to Alameda Research for trading and venture investments without customer consent.
In November 2022, a run on withdrawals exposed a shortfall and led to bankruptcy filings. Multiple agencies charged executives and initiated civil enforcement.
Timeline
Dec 13, 2022
CFTC Charges FTX and Alameda Research
U.S. Commodity Futures Trading Commission
Nov 2, 2023
U.S. Department of Justice: FTX founder convicted of fraud
U.S. Department of Justice
Sources
U.S. Department of Justice: FTX founder convicted of fraud
U.S. Department of Justice - 2023-11-02
CFTC Charges FTX and Alameda Research
U.S. Commodity Futures Trading Commission - 2022-12-13
Key facts
Date range
May 1, 2019 - Nov 11, 2022
Countries
Bahamas, United States
Fraud types
Wire fraud, Securities fraud, Misappropriation
Estimated amount
$8,000,000,000
Who is involved