FTX, four years later: A look back at the three days that precipitated bankruptcy

Sad birthday. On November 11, 2022, FTX and Alameda Research filed for Chapter 11 bankruptcy protection. In the preceding days, customers withdrew nearly $6 billion in 72 hours, Binance renounced a buyback and FTX's financing need was then estimated at up to $8 billion. Four years later, creditors received several billion dollars, based on claims valued at November 2022 prices. Flashback.

The key points of this article

An investigation into Alameda Research’s balance sheet revealed its exposure to FTT, the token issued by FTX.

Binance offered to buy FTX.com on November 8, 2022, then withdrew the next day.

The first distributions to creditors began in February 2025, based on dollar-denominated claims.

Sam Bankman-Fried, convicted of fraud and conspiracy, was sentenced to 25 years in prison in March 2024.

From Alameda's balance sheet to FTX's bankruptcy filing

On November 2, 2022, CoinDesk reveals that a significant portion of Alameda Research's assets are tied to FTT. The trading company thus depends in part on the value of a token issued by FTX, a company controlled by the same founder. On November 6, Changpeng Zhao announced that Binance would liquidate its remaining FTTs. Distrust is accelerating and requests for withdrawal are increasing.

On November 8, Binance signed a non-binding letter of intent to buy FTX.com, then withdrew the next day. On November 11, FTX, Alameda and numerous affiliated entities open bankruptcy proceedings in the United States. Sam Bankman-Fried steps down as director and John J. Ray III takes his place. The criminal trial will then establish that billions of dollars of customer funds were misappropriated, notably for the benefit of Alameda.

Reimbursements calculated at November 2022 prices

Distributions began in February 2025. For customers who had left cryptocurrencies on FTX, the amount of the claim is based on their dollar value on the date of the bankruptcy filing. At the time, bitcoin was worth less than $17,000. The announced repayment percentages apply to this reference value, with interest for certain categories of creditors.

On the criminal side, a jury convicted Sam Bankman-Fried on seven counts in November 2023. In March 2024, a federal judge sentenced him to 25 years in prison. The bankruptcy process follows a separate timetable, with installment payments as assets are liquidated and debts are processed.