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The collapse of cryptocurrency exchange FTX sent shockwaves throughout global crypto markets, and the unfolding developments involving founder and onetime CEO Sam Bankman-Fried have drawn the attention of Washington lawmakers. From a $32 billion empire to a bankrupt company, the saga persists.
But it might be important to take a step back to understand what exactly occurred.
The Early Days of FTX
In May 2019, Bankman-Fried and former Google employee Gary Wang launched FTX. Within two years, it had become the third-largest crypto exchange by volume with more than a million users. That allowed the company to raise $900 million in July 2021 during a single funding round as the firm was valued at $18 billion. For months, FTX raised hundreds of millions of dollars from dozens of investors amid elevated valuations.
