FTX collapse exposes how crypto industry used regulatory capture to block SEC oversight for years

FTX, the cryptocurrency exchange run by Sam Bankman-Fried, filed for bankruptcy on November 11, 2022, revealing an $8 billion gap between customer deposits and actual holdings. Federal prosecutors charged Bankman-Fried with wire fraud, securities fraud, and campaign finance violations. The collapse exposed years of industry lobbying that had kept cryptocurrency outside SEC jurisdiction while FTX operated without basic financial controls.