The Secret Story of FTX’s Rise and Ruin Part 2

When the cryptocurrency exchange FTX imploded, customers around the world lost access to their money. Founder Sam Bankman-Fried was convicted of fraud and sent to prison. But the story didn’t stop there. For the past three and a half years, FTX has been in bankruptcy, a legal process that determines who will be paid back and how much they’ll receive. 

From the start, some customers and FTX insiders have criticized the bankruptcy. Legal experts and a bipartisan group of senators objected to the law firm tapped to run it, raising concerns about potential conflicts of interest. But the bankruptcy court and an independent examiner signed off on the firm’s appointment as lead counsel.  

Customers are now receiving compensation for their losses, but many say they’re being shortchanged. Instead of being paid in cryptocurrency, they’re receiving cash, with their claims pegged to the value of crypto when the market was at an all-time low. 

“Under this plan, my contractual rights and my ownership rights have been trampled; my property rights have been disregarded,” says Lidia Favario, an Italian artist who argued in court that customers should be repaid in crypto, not cash.

This week on Reveal, in the second part of our series on FTX, we examine the decisions that shaped what’s become one of the most expensive bankruptcies in US history. 

Read the FTX bankruptcy estate’s on-the-record statement to Reveal. 

This is an update of a show that originally aired in October 2025.

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