In July 2021, FTX Exchange was the world&#8217;s 3rd-largest centralized coin exchange, focusing on derivatives and leveraged goods. FTX was established in 2018 by Sam Bankman-Fried, a former Jane Street Capital global ETFs trader, and offered a variety of trading products such as volatility goods, options, derivatives, and tokens with leverage. 
In addition, it provided spot markets in over three hundred digital trading pairs, including ETH/USDT, USDT/BTC, FTT/USDT (FTX’s native coin), and XRP/USDT.
The exchange and the businesses in its orbit started a precipitous decline from grace in early November 2022. On Nov 11, 2022, FTX applied for Chpt. 11 bankruptcy protection, and Bankman-Fried quit. 
According to its bankruptcy declaration, FTX, which had a market capitalization of $32 billion and has $8 billion in obligations, is unable to pay as many as 1 mln creditors.
In conformance with John J. Ray III, the court-appointed CEO of FTX, the exchange&#8217;s demise was caused by &#8220;a complete breakdown of corporate control.&#8221; 
FTX turned out to be an example of &#8220;old-fashioned embezzlement,&#8221; according to Ray, who has experience with significant business failures like the collapse of energy trader Enron in an accounting controversy in 2001. Ray also stated that creditors and investors are unlikely to receive their money back.
<h2 style="text-align: center;">FTX in the Beginning: Key Products &amp; Fees</h2>
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FTX&#8217;s broad variety of goods and simple PC and mobile trading applications initially attracted crypto investors of all tiers and experience levels. The FTX platform supported a wide variety of order classes, from simple market orders to more complicated trailing stop orders.
FTX accepted nine foreign currencies for bank transfers: EUR, AUD, USD, GH₵, CAD, BRL, GBP, CHF, and Arg$. The usage of JPY and TRY was limited, with ZAR, SGD, and the Hong Kong dollar capabilities guaranteed shortly.
<img class="size-full wp-image-2218 aligncenter" src="https://winz-blog.s3.eu-central-1.amazonaws.com/ftx_crypto_exchange_df8d47da03.jpg" alt="FTX Crypto Exchange" width="800" height="400" srcset="https://winz-blog.s3.eu-central-1.amazonaws.com/ftx_crypto_exchange_df8d47da03.jpg 800w, https://winz-blog.s3.eu-central-1.amazonaws.com/ftx_crypto_exchange_300x150_b210cf724e.jpg 300w, https://winz-blog.s3.eu-central-1.amazonaws.com/ftx_crypto_exchange_768x384_6b35cfbd66.jpg 768w" sizes="(max-width: 800px) 100vw, 800px" />
MOVE, futures, options, tokens with leverage, and spot markets were among FTX&#8217;s key offerings:
<ul>
<li style="font-weight: 400;" aria-level="1">Futures: Utilizing 100+ quarterly and permanent futures combinations with margins of up to x101, traders might place both long and short wagers on major cryptocurrencies. To establish and keep positions, stablecoins such as USD and USDT were used as collateral.</li>
<li style="font-weight: 400;" aria-level="1">Options: Using different call and put options, which provided the holder with the right to purchase or sell at a future goal price, traders could wager on future price movement and protect themselves against open contracts.</li>
<li style="font-weight: 400;" aria-level="1">MOVE: These contracts enabled traders to wager on how far the price of a digital currency would shift in a given time frame, regardless of direction, effectively making them a gamble on volatility. The contract produced a profit as long as the price of the underlying cryptocurrency went above a certain dollar number, either up or down.</li>
<li style="font-weight: 400;" aria-level="1">Tokens with Leverage: FTX gave ERC20-based tokens with up to 3x leveraged risk against the fundamental trading pair. For instance, if an investor purchased a BULL/USD &#8211; 3x long Bitcoin token and BTC rose 10% since the acquisition, the leveraged token would rise 30%. There was no margin limit for FTX&#8217;s leveraged coins.</li>
<li style="font-weight: 400;" aria-level="1">Spot Markets: FTX proposed over 100 distinctive spot trading pairs, allowing users to gain exposure to major cryptocurrencies such as Ethereum, Bitcoin, Chainlink, Binance Coin, and Ripple&#8217;s XRP. The US FTX provided more than 50 digital currency/currency spot trading pairs and options contracts in 0.01 Bitcoin and 0.1 Ether, altcoin exchanges, and BTC mini futures. It also ran a non-fungible currency (NFT) platform.</li>
</ul>
As of September 2022, FTX spot market trading and competitive futures costs varied from 0.04% to 0.075% for market takers, depending on the maker and taker paradigm. Meanwhile, leveraged coins had a 0.10% creation and redemption charge as well as a 0.03% daily administration fee.
For most digital currencies, there were no commissions for refills or withdrawals at FTX. All bitcoin withdrawals larger than 0.01 BTC were free, as was one less than 0.01 bitcoin cash-out per day. A 0.1% fee was applied to additional minor bitcoin transfers. Fiat money withdrawals of more than $5,000 were free, as was one cash-out of less than $5,000 per week.
As of September 2022, the US FTX trading costs for market takers were in the range of 0.05% to 0.2%. Fiat currency transfers could be made via ACH, bank transfer, Silvergate Exchange Network, and debit/credit card, all of which could be used to withdraw fixed currency (except for bank cards). Withdrawals of more than $5,000 USD via wire transfer were gratis. One weekly cash-out under that amount was also free, but additional bank transfers cost $25. 
For cryptocurrency transactions, there were no deposit costs. With the exception of ERC20/ETH and insignificant BTC transfers, the US FTX paid the withdrawal blockchain costs for all currencies.
Fees for NFTs differed depending on the site and location of the transaction. It costs $1 for FTX US customers to advertise an NFT utilizing its self-service tool, and the seller is charged 2% on each transaction or exchange. Contrariwise, FTX (the non-US site) assessed 5% of costs on both sides of the transaction.
<h2 style="text-align: center;">The Aftermath of the FTX Crash</h2>
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The FTX crash shook the highly volatile market of cryptocurrencies, which lost billions of dollars in worth, plummeting below $1 trillion.
On November 16, a class-action complaint was brought in a federal court in Florida, claiming that Sam Bankman-Fried devised a bogus cryptocurrency plan to take advantage of inexperienced investors from across the country. Steph Curry, Kevin O&#8217;Leary, Larry David, Shaquille O&#8217;Neal, Shohei Ohtani, and Naomi Osaka are among the celebrities mentioned in the lawsuit as having assisted Bankman-Fried in carrying out the scheme.
The FTX insolvency has had an impact on Genesis Global Capital, the Gemini cryptocurrency exchange, and BlockFi, a crypto financing network with substantial exposure to FTX. Due to the failure of FTX on November 16, the lending arm of bitcoin investment bank Genesis halted redemptions and new loans. 
Following the news, Gemini, the Winklevoss brothers&#8217; crypto exchange, revealed withdrawal delays from its Earn product, in which Genesis is a lending partner. BlockFi, a cryptocurrency lending network with substantial exposure to FTX, halted payouts and declared insolvency on November 28.
<h2 style="text-align: center;">The Indictment of a Former FTX CEO</h2>
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On December 13, 2022, Bankman-Fried was charged with 8 counts of fraud by the Southern District of New York&#8217;s US Attorney, Damian Williams, who also claimed that the former CEO had defrauded FTX&#8217;s clients, investors, and lenders to the hedge fund Alameda Research, which is connected to FTX, and broken campaign finance laws. It was one of the &#8220;largest financial frauds in history,&#8221; he continued.
The US District Court for the Southern District of NY charged Bankman-Fried on 8 charges, including structuring money and securities fraud. Following a court session on December 22, a judge of the United States decided to free Bankman-Fried after his lawyers and federal officials consented to the highest bail in history of $250 million.
<img class="size-full wp-image-2219 aligncenter" src="https://winz-blog.s3.eu-central-1.amazonaws.com/sam_bankman_fried_77f2331533.jpg" alt="Sam Bankman-Fried" width="400" height="400" srcset="https://winz-blog.s3.eu-central-1.amazonaws.com/sam_bankman_fried_77f2331533.jpg 400w, https://winz-blog.s3.eu-central-1.amazonaws.com/sam_bankman_fried_300x300_4a9b0ee77b.jpg 300w, https://winz-blog.s3.eu-central-1.amazonaws.com/sam_bankman_fried_150x150_61903e525b.jpg 150w" sizes="(max-width: 400px) 100vw, 400px" />
The former crypto executive will be restricted to Northern California, residing with his parents in Palo Alto, wearing an electronic tracking device, and being subject to mental health and drug abuse therapy.
Bankman-Fried did not plead guilty to all counts in the national court in New York on January 3. His hearing date has been scheduled for October 2.
In early 2023, a number of inquiries and lawsuits are ongoing. Regulatory authorities are investigating whether FTX utilized client money to support Alameda Research, a trading company that Bankman-Fried started and almost completely owns. 
During the interview with New York Times writer Andrew Sorkin at the DealBook Summit on November 30, the former CEO pretended to be unaware of what was going on between Alameda Research and FTX, its trading branch, and claimed he neither supervised nor nominated an officer to do so.
In response to Sorkin&#8217;s query about whether Bankman-Fried commingled FTX and Alameda Research funds, the former CEO stated that he did not &#8220;knowingly commingle&#8221; funds. 
After the interview, the editor at large at CoinDesk, Lawrence Lewitinn, questioned the truth of Bankman-Fried&#8217;s answer, saying that when funds are commingled, it is a purposeful action that does not happen by chance.
In another interview with a Vox reporter, Bankman-Fried said that he regretted declaring insolvency and that authorities &#8220;make everything worse.&#8221;
<h2 style="text-align: center;">Conclusion</h2>
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FTX was a popular cryptocurrency exchange that enabled users to purchase, trade, and engage in derivative contracts for currencies and tokens. FTX also pushed NFT and collectible trades. 
Though not available to American citizens due to crypto regulations, the platform allowed traders from all over the globe to exchange numerous digital currencies for moderately low commissions &#8211; until it went bankrupt, was hacked, its CEO resigned and was arrested, and investigations into the exchange as a Ponzi scheme began.

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FTX was a centralized coin exchange that specialized in leveraged goods and derivatives before declaring insolvency in the United States in November 2022. Find out what’s going on with the company and its prior CEO Sam Bankman-Fried at the moment!

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