It’s official: There will be no further attempts to salvage FTX. The once popular but now defunct crypto exchange that “misplaced” billions of dollars in user assets before collapsing in a heap of scandal is officially headed to the corporate graveyard.
The Guardian reports that FTX lawyers say that attempts to revive the exchange have been scrapped and that, instead, its assets will be liquidated and that funds will be returned to customers. Those close to the company had previously implied the beleaguered exchange could still somehow, make a comeback.
Thank God that won’t be happening. FTX was a walking disaster of a company and any attempt to rehabilitate its image would be the equivalent of trying to turn a flaming dumpster into a functional commuter vehicle. Best to let it die a natural death and let it stand as a warning to would-be crypto criminals to never try anything remotely resembling this scheme again.
FTX was formerly headed by crypto wunderkind Sam Bankman-Fried, a fuzzy-headed math nerd who took the world by storm in just a few short years. Between 2019 and 2022, FTX went from an unknown startup to a world-renowned company—one that swelled with billions in crypto assets and that enjoyed established relationships with droves of politicians and celebrities.
All of that came to an unfortunate end in November of 2022 when the company abruptly filed for bankruptcy and Bankman-Fried suddenly stepped down. In the weeks and months that followed, allegations of widespread misconduct at the company grew, and not long afterward, SBF was arrested. Subsequent reports from the exchange’s restructuring team have alleged cartoonish levels of incompetence and malfeasance at the company. The company is said to have misallocated and “lost” billions of dollars worth of customer funds.
In December of 2022, Bankman-Fried was charged by authorities with a massive illegal financial scheme. After a short trial, the young former crypto exec was convicted of seven federal charges related to his defrauding of FTX customers. He is currently awaiting sentencing, which is scheduled to occur on March 28. He faces a maximum penalty of 115 years in prison.