Who Is the Killer in 56 Days
The phrase "killer in 56 days" refers to the rapid collapse of the cryptocurrency exchange FTX and its affiliated entities, including FTX.US, FTX Digital Markets, and Alameda Research, which unfolded over roughly 56 days in late 2022. The central figure identified as the primary driver of the collapse is Sam Bankman-Fried, founder and former CEO of FTX and controlling shareholder of Alameda Research. The timeline began with a CoinDesk research report on November 2, 2022, that revealed Alameda's balance sheet was heavily dependent on FTT tokens, triggering a liquidity crisis that led to Binance CEO Changpeng Zhao announcing on November 6 that Binance would sell its FTT holdings. Within days, FTX faced a massive customer withdrawal run, and on November 11, FTX filed for Chapter 11 bankruptcy protection in the Southern District of New York, with John J. Ray III appointed as restructuring trustee. The collapse wiped out an estimated $8 billion in customer deposits and triggered regulatory actions across multiple jurisdictions. For background on FTX's structure and the bankruptcy filing, see the company's official bankruptcy overview page at https://www.ftx.com.
Key Entities and Leadership
FTX Trading Limited, FTX US, FTX Digital Markets, and Alameda Research were the core entities in the collapse, with Sam Bankman-Fried as the controlling personality across the group. Gary Wang, co-founder and former CTO of FTX, and Caroline Ellison, former CEO of Alameda Research, have pleaded guilty to fraud charges in the U.S. and provided testimony detailing the misuse of customer funds. The U.S. Bankruptcy Court for the Southern District of New York oversees the FTX bankruptcy estate, with John J. Ray III leading efforts to recover assets and maximize returns for creditors. The U.S. Securities and Exchange Commission filed civil fraud charges against Bankman-Fried, alleging a multi-year scheme to steal billions from FTX customers, while the Commodity Futures Trading Commission separately charged FTX and Bankman-Fried with illegal commodity trading and fraud. For the SEC's complaint details, see https://www.sec.gov.
What Happened in 56 Days
The 56-day collapse sequence started with the November 2, 2022 CoinDesk report that showed Alameda's balance sheet was largely composed of illiquid FTT tokens and that Alameda had borrowed heavily against customer deposits on FTX. On November 6, Binance CEO Changpeng Zhao announced Binance would liquidate its FTT holdings, causing FTT's price to crash and triggering panic withdrawals from FTX. FTX attempted a bailout from Binance that fell apart within hours, and by November 8, FTX halted withdrawals, exposing a liquidity shortfall estimated at billions of dollars. On November 11, FTX, FTX US, and over 100 affiliated entities filed for Chapter 11 bankruptcy, with customer assets frozen and the company's headquarters in the Bahamas entering administration proceedings. The collapse led to arrests of Bankman-Fried in the Bahamas on December 12, 2022, extradition to the United States, and a series of criminal indictments in the Southern District of New York. For a timeline of the bankruptcy process and court filings, see the U.S. Bankruptcy Court for the Southern District of New York at https://www.nysb.uscourts.gov.
Financial and Market Impact
The FTX collapse erased an estimated $8 billion in customer deposits and triggered a broader crypto market downturn, with the total cryptocurrency market capitalization falling from roughly $1.1 trillion in early November 2022 to around $830 billion by mid-November. FTX's own valuation had peaked at $32 billion in 2021 before falling to zero in the bankruptcy proceedings. The collapse also led to the failure of FTX's $2 billion venture fund, FTX Ventures, and