This refers to the downfall of Sam Bankman-Fried (SBF), the founder of the cryptocurrency exchange FTX. Once considered a crypto prodigy and philanthropist, SBF built a $32 billion empire with FTX, which became one of the largest crypto exchanges globally. However, in 2022, the company collapsed spectacularly due to alleged fraud, mismanagement, and mishandling of customer funds.
SBF is accused of using customer deposits to fund risky bets through his trading firm, Alameda Research, leading to FTX's bankruptcy. After a wave of investigations and legal battles, he was arrested and charged with fraud, conspiracy, and money laundering. If convicted on all charges, he could face up to 25 years in prison.
The collapse of FTX shook the entire cryptocurrency industry, wiping out billions in market value and eroding trust in the sector.
