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Business News/ News / World/  Timeline: How FTX, the world’s second-largest crypto exchange, blew up

Timeline: How FTX, the world’s second-largest crypto exchange, blew up

Recently, the second-largest crypto exchange collapsed. Here is the timeline , what lead the company to the verge of collapse

How FTX, the world’s second-largest crypto exchange, blew up (REUTERS)Premium
How FTX, the world’s second-largest crypto exchange, blew up (REUTERS)

Cryptocurrency exchange FTX was on the verge of collapse on Friday after a bailout from its rival Binance failed and there appeared to be little chance of receiving additional rescue funding. Sam Bankman-Fried, the company's chief executive, said he was looking at every possibility for his firm.

Here is a history of FTX since its foundation in 2019:


May - Former Wall Street trader Sam Bankman-Fried and ex-Google employee Gary Wang founded FTX, the owner and operator of FTX.COM cryptocurrency exchange.


August - FTX acquired the mobile portfolio tracking application, Blockfolio for $150 million.


July - A $900 million funding round valued FTX at $18 billion.

September - FTX signed a sponsorship deal with Mercedes' Formula 1 team.

October - FTX raised capital at a valuation of $25 billion from investors including Singapore's Temasek and Tiger Global.


January 27 - FTX's US arm said it was valued at $8 billion after raising $400 million in its first funding round from investors including SoftBank and Temasek.

January 31 - FTX raised $400 million from investors including SoftBank at a valuation of $32 billion.

June 4 - FTX signed a reportedly $135 million sponsorship deal for naming rights of the Miami Heat's home court. July 1 - FTX signed a deal with an option to buy embattled crypto lender BlockFi for up to $240 million.

July 22 - FTX offered a partial bailout of bankrupt crypto lender Voyager Digital. Voyager called it a "low-ball bid".

July 29 - FTX said it won full approval to operate its exchange and clearing house in Dubai.

August 19 - A US bank regulator ordered FTX to halt "false and misleading" claims it had made about whether funds at the company are insured by the government.

September 9 - FTX's venture capital fund said it would buy a 30% stake in SkyBridge Capital.

November 2 - Crypto news website CoinDesk reported a leaked balance sheet that showed Alameda Research, Bankman-Fried's crypto trading firm, was heavily dependent on FTX's native token, FTT. Reuters was unable to verify the report.

November 6 - Binance CEO Changpeng Zhao said his firm would liquidate its holdings of FTT due to unspecified "recent revelations". Nov. 7 - Bankman-Fried said "FTX is fine. Assets are fine".

November 8 - FTT collapses by 72% as clients swamp the exchange with withdrawal requests.

November 9 - Binance decided against pursuing a nonbinding agreement to bail out FTX.

Binance announced on Twitter that it was backing out of the deal with FTX. It said, "As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX. In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help."

November 10 - FTX suspended on-boarding of new clients as well as withdrawals until further notice

- Bankman-Fried told staff in a memo that he was seeking a capital raising and had held talks with Justin Sun, founder of the crypto token Tron

- Reuters reported that Bankman-Fried is seeking to put together a rescue package of up to $9.4 billion for FTX Nov. 10 - Securities Commission Of the Bahamas said it had frozen assets of FTX Digital Markets, a subsidiary of FTX

- US Senate Agriculture Committee Chair Debbie Stabenow said the US Congress needs to pass legislation in the wake of the collapse of FTX

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Published: 11 Nov 2022, 11:51 AM IST
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