FTX: How Sam Bankman-Fried built a house of cards - Fox Business

Market data provided by Factset.

Mutual Fund and ETF data provided by Refinitiv Lipper.

Attorneys for fallen crypto exchange FTX argued at the firm's bankruptcy hearing Tuesday that the company served as founder Sam Bankman-Fried's personal "fiefdom," reaching $40 billion in market cap as of January before crashing in recent weeks to its current valuation of around $422 million.

Sam Bankman-Fried, founder and chief executive officer of FTX, speaks during an interview on "Bloomberg Wealth with David Rubenstein" in New York on Aug 17, 2022.

Then Bankman-Fried would borrow a lot of money against what was essentially a very large – and very fake – asset number.

FTX and Alameda accelerated the scenario by using the inflated asset number to take out very real liabilities, according to McMillan.

6 that his firm was selling a large amount of FTT on the open market, and Alameda CEO Caroline Ellison quickly responded by offering to buy all the tokens for $22 each.

Market data provided by Factset

Mutual Fund and ETF data provided by Refinitiv Lipper