Bankruptcy Filings Show Where All of FTX's Money Went: Unraveling the Crypto Collapse
The bankruptcy of FTX, a Bahamas-based cryptocurrency exchange, began in November 2025. The collapse of FTX, caused by a spike in customer withdrawals that exposed an $8 billion, shook the crypto world. Investors’ assets are now gone from the misdealings of a platform once valued at $32 billion. But where did all that money go? Subsequently, the bankruptcy filings give a better look at where all of FTX's money went, providing crucial insights into the financial catastrophe.
On March 2, FTX published a press release detailing a presentation filed for the exchange’s Chapter 11 bankruptcy case, citing a “massive shortfall” in assets. These filings are the key to understanding the complex web of transactions and investments that led to the downfall.
The ensuing chaos from the FTX collapse rippled through the industry. Several major industry players including Three Arrows Capital and Voyager Digital filed for bankruptcy as a result of TerraUSD and Luna’s crash, highlighting the interconnectedness and vulnerability within the crypto ecosystem.
Recent filings show that it is $5.5 million worth of liquid assets that include cash and digital assets. In documents filed Friday, it was revealed that out of the total, $1.7... Where is the rest? The bankruptcy proceedings aim to recover and distribute these assets to creditors, including those who lost their investments.
According to a plan presented in bankruptcy court, nearly all account holders of the bankrupt cryptocurrency exchange FTX are in line to receive cash worth more than 100 per cent of their official claims. This is a promising development, though the process of recovering assets and compensating creditors is ongoing and complex.
Beyond the immediate financial losses, the bankruptcy filings have also shed light on the political activities of FTX's leadership. According to data at the Federal Election Commission, Bankman-Fried sluiced $36 million on the campaign coffers of Democrats during the latest campaign cycle. This raises questions about the influence of FTX and its executives in the political arena.
Stay updated on the latest developments in the FTX bankruptcy case as we continue to analyze the filings and uncover where all the money went.