November 11, 2022
FTX files for bankruptcy after liquidity collapse
CryptocurrencyDigital money secured by cryptography — transactions recorded on distributed ledgers such as blockchains. exchange FTX and over 130 affiliated entities filed for Chapter 11 bankruptcyLegal process when a company cannot pay debts — often follows rapid collapse in crypto or dot-com busts. on November 11, 2022 — wiping out billions in customer deposits and triggering a crypto industry reckoning.
What it was for
FTX had been a top-tier exchange and venture investor; its collapse froze developer grants, killed sponsorship deals, and spurred global calls for exchange custody rules. The fallout accelerated regulatory scrutiny of stablecoins, proof-of-reserves audits, and decentralized exchange design — ending the era of lightly regulated crypto banking.
Why it's here
FTX's failure was the defining crypto scandal of the 2022 bear market.
Why it mattered
It forced exchanges and DeFiDecentralized finance — lending, trading, and derivatives on blockchains without traditional banks. projects to prove custody, audits, and governance.
What it solved
Users lacked transparency into whether centralized exchanges actually held their assets.
Media
ImageCryptocurrency Apps screenshotjoncutrer, CC0 1.0, via flickr
Related
- Bitcoin genesis block minedJanuary 3, 2009
- Coinbase foundedJune 2012
- Ethereum Merge completesSeptember 15, 2022