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Good Morning America – Timeline of FTX's historic collapse
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Tangentially relevant to AI safety as the FTX collapse impacted Effective Altruism funding networks that had supported AI safety research, and raised broader questions about governance and accountability in emerging technology sectors.
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Summary
This Good Morning America article provides a chronological timeline of the collapse of FTX, the major cryptocurrency exchange founded by Sam Bankman-Fried. It covers key events from the initial concerns about FTX's balance sheet to its bankruptcy filing and the subsequent legal consequences. The collapse became a landmark case in crypto governance failures and financial fraud.
Key Points
- •FTX's collapse in November 2022 was one of the largest financial fraud cases in history, wiping out billions in customer funds.
- •The crisis began when reporting revealed FTX's balance sheet was heavily dependent on its own FTT token, raising insolvency concerns.
- •Competitor Binance initially agreed to acquire FTX but withdrew after due diligence revealed massive financial holes.
- •FTX filed for bankruptcy and Sam Bankman-Fried resigned as CEO, later facing criminal charges for fraud and conspiracy.
- •The collapse raised major questions about oversight, governance, and trust in crypto exchanges and the broader digital asset ecosystem.
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# A timeline of cryptocurrency exchange FTX's historic collapse
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Timeline: FTX's historic collapse
Tom Williams/CQ-Roll Call via Getty Images, FILE
By[Max Zahn](https://www.goodmorningamerica.com/author/Max_Zahn)
March 28, 2024, 12:08 PM
[Sam Bankman-Fried](https://abcnews.com/Business/sam-bankman-fried-ftxs-embattled-founder/story?id=93499631), the former CEO of FTX, was a 30-year-old crypto wunderkind who for years garnered goodwill as a philanthropist and leading proponent of industry regulation. Now, his ex-firm is bankrupt and he has been [convicted](https://abcnews.com/Business/sam-bankman-fried-trial-verdict-reached-federal-fraud/story?id=104520346) of defrauding investors out of billions of dollars.
On Thursday, a federal judge sentenced Bankman-Fried to 25 years in prison.
Some crypto traders, who deposited their savings on the platform, may never get their money back.
[**Related Articles** \\
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MORE: What FTX's bankruptcy filing means for the future of digital currency](https://www.goodmorningamerica.com/news/story/32b-crypto-company-ftx-collapsed-digital-currency-reeling-93051079)
Below is a timeline of the series of events that explains exactly how the company and its founder fell so far and so fast.
## 2024
**Jan. 31** – A lawyer representing the bankruptcy estate of FTX said the firm expects to fully repay customers. "There is still a great amount of work and risk between us and that result, but we believe the objective is within reach, and we have a strategy to achieve it," FTX attorney Andrew Dietderich said at a court hearing.
**Feb. 27** – Attorneys for Bankman-Fried filed a memo saying he should receive a prison sentence of between 5.25 and 6.5 years.
**March 15** – Prosecutors said Bankman-Fried should receive 40 to 50 years in prison due to the "enormous scale of the fraud."
**March 28** – A federal judge sentenced Bankman-Fried to 25 years in prison. "This was a very serious crime," U.S. District Judge Lewis Kaplan said.
## 2023
**Jan. 3** – In a New York courtroom, Bankman-Fried [pleaded](https://abcnews.com/US/ftx-crypto-ceo-sam-bankman-fried-expected-plead/story?id=96107918) not guilty to criminal charges that he defrauded investors. U.S. District Judge Lewis Kaplan announced that the trial would take place in October.
**Jan. 12** – Bankman-Fried [published](https://abcnews.com/Business/5-takeaways-sam-bankman-frieds-surprising-substack-blog/story?id=96392606) a 2,300-word blog post rebuking the fraud and conspiracy charges, replete with charts and graphs. He said that he didn't steal customer funds, instead blaming the company's woes on a sharp downturn in the cryptocurrency market.
**Aug. 11** – Bankman-
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