In November 2022, the cryptocurrency world was rocked by the sudden collapse of FTX, once the third-largest crypto exchange by volume. The downfall was triggered by a surge in customer withdrawals that exposed an $8 billion deficit in FTX's accounts. Investigations revealed severe mismanagement, including the misuse of customer funds and lack of proper oversight. Founder and CEO Sam Bankman-Fried resigned and was later convicted of fraud and conspiracy. The FTX collapse sent shockwaves through the crypto market, leading to significant losses and a reevaluation of regulatory standards within the industry.