FTX collapse (November 2022)
FTX, one of the world's largest crypto exchanges, collapsed in November 2022 after revelations that customer funds were diverted to cover losses at its trading arm. The exchange filed for bankruptcy, and founder Sam Bankman-Fried was later convicted of fraud.
FTX filed for bankruptcy, leaving customers unable to access funds.
The collapse intensified calls for crypto regulation and highlighted the need for proof-of-reserves requirements.
The CFTC's proposed proof-of-reserves obligation for crypto asset markets is a direct response to the FTX collapse, which Chairman Selig referenced in his remarks.
