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Originally Published: Nov 10, 2022
Originally Published: Nov 10, 2022 Last Updated: Nov 11, 2022 6 min read

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Close-up of cryptocurrency coins
Money; Shutterstock

Crypto markets are notoriously unpredictable, but volatile prices pale in comparison to this week's chaos.

The crypto exchange FTX, one of the largest crypto exchanges in the world, has filed for bankruptcy, according to a statement from the company posted to Twitter Friday morning. Less than a year ago, FTX was valued at more than $30 billion.

“The events of the last 48 hours have been a huge shock to the system and will have broader reach than some of the other crypto winter events that we've digested over the past 12 months,” Madeline Hume, senior research analyst at Morningstar, told Money Thursday.

The implosion of FTX could have wide-ranging ramifications for the entire industry. Here’s everything you need to know.

What happened to the FTX crypto exchange?

FTX was founded in 2019 by Sam Bankman-Fried, a well-known and highly respected figure in the crypto space. The platform lets investors buy and sell crypto assets.