Sovereignty incident · inc-2022-xx-ftx
FTX: exchange insolvency and chapter 11 proceedings
In early November 2022 customers of the FTX exchange withdrew their assets in large numbers. On 11 November 2022 FTX Trading Ltd. and affiliated companies filed for relief under chapter 11 in the United States Bankruptcy Court for the District of Delaware (case 22-11068), and customers filed claims for the value of the digital assets held by the debtors. On 12 November 2022 the Securities Commission of The Bahamas, under an order of the Supreme Court of The Bahamas, directed the transfer of all digital assets of FTX Digital Markets Ltd. to a wallet it controls. In December 2022 the U.S. Commodity Futures Trading Commission alleged in a complaint that the conduct of the defendants caused the loss of over USD 8 billion in FTX customer deposits.
- When
- Since (ongoing or open-ended)
- Jurisdictions
- Bahamas, United States
- Kinds
- Loss
What happened
The incident begins.
- Open
No end date: ongoing or open-ended.
Forms of money
Who was affected: Customers with balances on the FTX exchanges. Assets that customers held in their own wallets, outside the exchange, were not held by FTX.
Forms of money affected
- Balances held at a custodial exchange
Forms of money not affected
Each form of money links to the Money in everyday life matrix, which compares their properties with sources.
Sources
Sources: United States Bankruptcy Court for the District of Delaware, In re FTX Trading Ltd., et al., Case No. 22-11068 (JTD): Memorandum Opinion and Order regarding Estimation of Digital Asset Claims (26 June 2024); Securities Commission of The Bahamas, Media release: Securities Commission of The Bahamas Assumes Control of Assets of FTX Digital Markets Ltd. (17 November 2022); U.S. Commodity Futures Trading Commission, Release 8638-22: CFTC Charges Sam Bankman-Fried, FTX Trading and Alameda with Fraud and Material Misrepresentations (13 December 2022)