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What was the FTX collapse?
FTX was a crypto exchange that collapsed in November 2022 after customers found their deposits had been used elsewhere. Its founder, Samuel Bankman-Fried, was convicted of fraud and conspiracy in 2023 and sentenced in 2024 to 25 years in prison.
What it means for you
Coins left on an exchange are a claim on that company, not coins you hold. When an exchange fails, customers wait on a bankruptcy process to get back what they can.
How it works
The US Justice Department says Bankman-Fried misappropriated billions of dollars of FTX customer deposits and defrauded FTX investors and lenders to his trading firm, Alameda Research. A jury found him guilty on seven counts after a one-month trial. He was sentenced to 25 years and ordered to forfeit $11 billion, which the court allowed to be used to compensate victims.
Source: US DOJ: Samuel Bankman-Fried sentenced to 25 years · checked 5 October 2026
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