/ Conviction Index / FTX / FTT (Defunct 2022)

FTX / FTT (Defunct 2022)

Defunct · FTT · Launched 2019; collapsed Nov 2022
F

Critical (F) — Conviction Grade

FTX was the second-largest cryptocurrency exchange before its collapse in November 2022. Founder Sam Bankman-Fried convicted of seven counts of fraud and conspiracy; sentenced to 25 years in federal prison (Mar 2024). Approximately $8B in customer funds were misappropriated. FTX bankruptcy estate has been progressing customer reimbursement at par + interest.

8
Composite / 100
/ Subscore Breakdown · 5 Dimensions

Where this grade comes from.

Protocol Security
F
Governance Decentralization
F
Liquidity
F
Adoption & Utility
F
Regulatory Posture
F
/ Public-Record Events

Key events & disclosures.

  • Founded 2019
  • Collapse Nov 2022
  • SBF conviction Nov 2023
  • SBF 25-year sentence Mar 2024
  • Customer recovery at par + interest ongoing

/ Best for

Not relevant. Cautionary example.

/ Watch out for

Centralized-exchange counterparty risk demonstrated. Default to regulated US exchanges (Coinbase, Kraken) or self-custody.