FTX Cryptocurrency Fraud

FTX’s implosion wiped $32 billion in value overnight after Sam Bankman-Fried misappropriated at least $8 billion in customer deposits to fund Alameda Research and political donations, making it the fastest collapse of a major exchange in history. This single fraud exceeded the entire valuation of #10 BP’s Deepwater Horizon cleanup costs, with a direct theft that dwarfed the 4.9 million barrels spilled by BP. Over 1 million users lost assets, and the ensuing bankruptcy revealed a $9 billion liability hole, 70% larger than the typical crypto fraud case. Its ripple effects crashed the entire crypto market by $200 billion within days, cementing its status as the worst financial scandal since Enron.