FTX

FTX is not an operating firm. It filed for Chapter 11 bankruptcy protection in November 2022. The entity is now a debtor-in-possession managed by restructuring professionals, led by CEO John J. Ray III, with a mandate to recover assets and distribute proceeds to creditors. No new investment activity or trading occurs under the FTX name.

Both FTX and Alameda Research were founded by Sam Bankman-Fried and were closely related entities. Federal prosecutors established that FTX customer deposits were secretly funneled to Alameda Research through a backdoor in the exchange's code, bypassing risk controls. The commingling of funds between the two was the central fraud that led to criminal convictions for Bankman-Fried and several associates.

The FTX bankruptcy estate has recovered over $16 billion in assets — including cash, crypto, real estate, and venture investments — as of early 2025. The estate's plan estimates that a majority of creditors will eventually receive over 100% of their allowed claims in dollar terms, based on November 2022 petition-date valuations, though the process remains ongoing with distributions expected through 2025 and beyond.

John J. Ray III, an experienced restructuring specialist who previously managed the Enron wind-down, was appointed CEO of FTX Trading Ltd. immediately after the Chapter 11 filing in November 2022. He oversees all asset recovery, litigation, and creditor repayment efforts. The estate operates under the jurisdiction of the U.S. Bankruptcy Court for the District of Delaware.

In November 2023, a federal jury in the Southern District of New York found Bankman-Fried guilty on all seven counts, including wire fraud, securities fraud, and conspiracy to commit money laundering. He was sentenced to 25 years in federal prison in March 2024 and ordered to forfeit over $11 billion in assets. He is currently incarcerated and appealing the conviction.