FTX Collapse Timeline - Changelly

# Sam Bankman-Fried and FTX: The Timeline of the Collapse

**Written by** [Daria Morgen](https://changelly.com/blog/author/dariam/)

April 17, 20245 m

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In recent years, the meteoric rise and the catastrophic fall of FTX have captured the attention of many people worldwide and created some urgent questions about the stability and regulation of the cryptocurrency industry. Central to that whole saga was Sam Bankman-Fried, the founder of FTX, whose actions and subsequent legal entanglements have had profound implications for the market.

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## Who Is Sam Bankman-Fried and What Is FTX?

Sam Bankman-Fried, commonly referred to as SBF, is a significant figure in the cryptocurrency world. He is the founder of FTX, a cryptocurrency exchange that quickly became one of the largest and most influential platforms in the crypto space. Known for his curly hair and often seen wearing shorts and T-shirts, Bankman-Fried used to have quite a good reputation in the past: he was famous not just for his casual demeanor but also for his sharp intellect and ambitious plans in the crypto industry.

FTX, launched in 2019, was designed to offer innovative products, including derivatives, options, and other sophisticated trading products, which appealed to a global base of customers. The platform gained fame for its user-friendly interface, powerful trading features, and strong emphasis on security. FTX stood out in the crowded marketplace by venturing into sports and esports sponsorships, carving out a mainstream presence that few other crypto entities managed to achieve.

### What Did Sam Bankman-Fried Do?

The story took a dramatic turn in late 2022, when FTX collapsed under the weight of financial mismanagement and allegations of using customer funds to cover debts from other ventures within Bankman-Fried’s crypto empire, primarily the trading firm Alameda Research. This downfall not only affected millions of investors but also sent shockwaves across the financial markets, leading to broader discussions about the regulation and stability of the cryptocurrency market. Now, let’s take a closer look at how it all went down.

## Early Warning Signs and the Initial FTX Collapse

- **November 2, 2022:** The first public sign of trouble emerged when Coindesk reported that Alameda Research, Bankman-Fried’s trading firm, held a significant amount of FTT, a native token of FTX, indicating potential financial instability. This revelation spooked the market, leading to a rapid decline in FTT’s value.
- **November 6, 2022:** The situation escalated when Binance, a rival crypto exchange, announced it would liquidate i

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