FTX US
⚠️ DEFUNCT: FTX enabled cryptocurrency spot and derivatives trading (collapsed November 2022).
⚠️ DEFUNCT COMPANY - FTX was a cryptocurrency derivatives exchange founded in 2019 that collapsed in November 2022. Prior to collapse, it was the second-to-third largest crypto exchange by volume with over 1 million users, offering spot and derivatives trading with native token (FTT) incentives. The company imploded due to misuse of customer funds by sister company Alameda Research, revealing severe internal control failures. This profile is provided for historical reference only.
Problem solved
⚠️ DEFUNCT: Previously addressed cryptocurrency derivatives trading needs, but operated fraudulently by diverting customer funds to risky sister-company trades.
Target customer
Retail cryptocurrency traders and institutional investors (historical; company no longer operational)
Founders
S
Sam Bankman-Fried
CEO & Founder
Born 1992, Stanford. Worked at quantitative trading firm Jane Street Capital before co-founding Alameda Research in 2017 with Gary Wang, then FTX in 2019.
G
Gary Wang
CTO & Co-Founder
MIT graduate (mathematics & computer science), former roommate of Sam Bankman-Fried. Previously worked at Google Flights building ticket price aggregation systems before joining Alameda Research (2017) and co-founding FTX (2019).
Funding history
Series A
$8M
August 6, 2019
Led by Unknown
· Unknown
Series B
$900M
July 20, 2021
Led by Paradigm
· Temasek, Multicoin Capital, SoftBank
Series B-1
$420M
October 2021
Led by Unknown
· Unknown
Series C
$400M
January 31, 2022
Led by Paradigm
· Temasek, Multicoin Capital, SoftBank
FTX US Series A
$400M
Unknown
Led by Unknown
· Unknown
Total raised:
$1.73B
Pricing
Not publicly disclosed. Exchange offered trading discounts for users conducting trades with native FTX Token (FTT).
Notable customers
Not publicly disclosed. Served over 1 million retail users before collapse.
Website
Competitors
Binance
Largest crypto exchange by volume; CEO Changpeng Zhao publicly announced sale of FTT holdings during FTX's collapse crisis.
Coinbase
US-regulated crypto exchange with SEC compliance; no known connection to fraudulent trading activities.
Kraken
Peer cryptocurrency exchange; survived 2022 industry collapse with operational integrity.
Crypto.com
Alternative crypto exchange with different market positioning and regulatory approach.
Gemini
Regulated US crypto exchange with institutional focus.
Why this matters: ⚠️ HISTORICAL CASE STUDY: FTX represents one of the most significant collapses in crypto history and a major cautionary tale about corporate fraud in fintech. Despite raising $1.73B from top-tier investors and achieving a $32B valuation, the company's lack of internal controls and misuse of customer funds led to bankruptcy and criminal charges against its founders.
Best for: ⚠️ NOT RECOMMENDED - Company is defunct and cannot be used. Profile provided for historical/educational reference only.
Use cases
Cryptocurrency Derivatives Trading (Historical)
⚠️ DEFUNCT USE CASE: Previously enabled retail and institutional traders to execute spot and derivatives trades on cryptocurrencies with incentivized native token usage. This functionality is no longer available.
Alternatives
Binance
Largest operational crypto exchange by volume; no bankruptcy or fraud allegations.
Coinbase
SEC-regulated US exchange with transparent compliance and institutional backing.
Kraken
Established crypto exchange with operational continuity and proven risk management.
FAQ
What was FTX? +
⚠️ DEFUNCT: FTX was a cryptocurrency derivatives exchange founded in 2019 by Sam Bankman-Fried and Gary Wang. It grew to become the second-to-third largest crypto exchange by volume with over 1 million users before collapsing in November 2022.
Why did FTX collapse? +
⚠️ BANKRUPTCY REASON: FTX's bankruptcy stemmed from misuse of customer funds. The exchange illegally diverted customer deposits to its sister company, Alameda Research, to cover risky trades. This revealed severe internal control failures and lack of risk management practices.
What happened to investors? +
⚠️ INVESTOR LOSSES: Institutional investors lost significant capital. Notable affected investors include Tiger Global Management, Ontario Teachers' Pension Plan, SoftBank Group, BlackRock, Lightspeed Venture Partners, Temasek, and Sequoia Capital. Total losses exceeded $1.73B raised.
What are alternatives to FTX? +
Binance (largest crypto exchange), Coinbase (SEC-regulated US exchange), Kraken (established crypto platform), Crypto.com (alternative exchange), Gemini (institutional crypto trading).
Can I still use FTX? +
⚠️ NO: FTX is permanently closed and cannot be used. The exchange filed for bankruptcy on November 11, 2022, and has not resumed operations. User funds were frozen during the collapse.
Tags
cryptocurrency
exchange
trading
derivatives
defunct
fraud
bankruptcy
crypto-exchange
fintech-fraud
cautionary-tale