FTX & Alameda Research

admin 9 min read

FTX founder Sam Bankman-Fried secretly started shifting his customers’ deposited Bitcoins to his sister trading firm, Alameda Research, for fund management.

FTX & Alameda Research

Launch
2019
Death / Exploit
November 2022
Total Loss
$8 Billion

When Alameda drowned in risky trades, FTX had no Bitcoin left to fulfill customer withdrawals. Within a single week, a $32B valuation dropped to zero.

Lesson

Verify reserves via cryptographic proof: Only trust platforms that provide clear Proof-of-Reserves (PoR) to guarantee they actually hold your deposited Bitcoin.

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