FTX collapse

Conditions at the time

Exchange users depended on confidence that the platform could fulfill customer asset withdrawals.

How events unfolded

The international platform stopped withdrawals on 11/8, and the FTX group filed for bankruptcy protection on 11/11.

Stakeholders and impacts

Customers, creditors, affiliates and bankruptcy administrators faced asset-recovery issues.

Information available at the time

Withdrawal suspension timing and responses differed across platforms, making generalization from a single exchange’s experience difficult.

Findings confirmed later

Bankruptcy records revealed the risk that customers must participate in asset-recovery proceedings as creditors of the exchange.

Alternative interpretations and limitations

Distinguish digital-asset price risks from custody and counterparty risks; recovery rates are treated as a separate event.

Source-based context and interpretation

Louisiana's regulator described bankruptcy proceedings across FTX entities and explained that the treatment and recovery of customer crypto remained uncertain at filing. Chicago Fed researchers compared withdrawal suspensions and bankruptcies across platforms. ASSETCASTING interpretation: Price losses and inability to withdraw are distinct risks. Examine custody arrangements, contractual rights and creditor status before treating an exchange balance as readily available cash.

Evidence coverage through 2023-05 · Sources checked 2026-10-14

• FTX Files Chapter 11 Bankruptcy ↗
• A Retrospective on the Crypto Runs of 2022 ↗

Related events and periods1

• Inflation response and interest-rate adjustment →

  An event or period whose recorded start falls within this editorial interval. This does not establish that it caused or represents the characteristics of the era, nor guarantee that the entire period falls within the interval.