Was FTX a fraud?

FTX was a fraud “from the start,” the Securities and Exchange Commission alleged — with a “multi-billion-dollar deficiency caused by his own misappropriation of customer funds.” Follow along for all the latest news and regular updates from the trial. First of all, what exactly is FTX? FTX is a cryptocurrency exchange based in the Bahamas.

How much money does FTX owe?

(AP Photo/Rebecca Blackwell, File) FTX, once among the largest cryptocurrency exchanges in the world, said this week that nearly all of its customers will receive the money back that they are owed, two years after its monumental collapse. FTX said in a court filing late Tuesday that it owes about $11.2 billion to its creditors.

How has the collapse of ftx eroded confidence in the digital asset market?

The sudden collapse last week of FTX and Bankman-Fried’s trading shop Alameda Research, once viewed as pillars of the industry, has severely eroded confidence in the digital asset market. FTX had less than $1bn in easily sellable assets against $9bn in liabilities before it went bankrupt on Friday, the Financial Times reported on Saturday.