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THE WEEKLY REVEAL
Saturday, October 4, 2025
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The Secret Story of FTX’s Rise and Ruin Part 2
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Timothy A. Clary/AFP/Getty
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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 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.
This year, customers are 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.
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Catch Up First: Listen to The Secret Story of FTX’s Rise and Ruin Part 1
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Sam Bankman-Fried was once called the “crypto king.” But in November 2022, his company, FTX, imploded within a matter of days. All around the world, customers of the cryptocurrency exchange were suddenly cut off from their money.
Meanwhile, inside the company, employees were panicking.
Through prison interviews with Bankman-Fried, his parents, FTX insiders, and customers, we take you through the frantic week of FTX’s collapse and the controversial and less well-known bankruptcy that followed. At a cost of nearly $1 billion, it has become one of the most expensive in history.
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🎧 Other places to listen: Spotify, Overcast, iHeartRadio, or wherever you get your podcasts.
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So You Don’t Understand Crypto. Buckle Up.
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The growth of crypto—decentralized digital currency that doesn’t rely on the backing of a bank or government—is one of the most transformative financial developments of the 21st century. And yet cryptocurrencies still baffle so many. How risky of an investment is it? Where do I buy it? And, wait, what is crypto again?
On this week’s More To The Story, host Al Letson sits down with independent journalist Molly White for some answers.
She examines the growth of cryptocurrency in the US, how digital currencies have begun permeating American politics, and the extreme risks and rewards of investing in crypto as the Trump administration is deregulating the industry.
White also recounts the epic rise and fall of FTX, the cryptocurrency exchange started by Sam Bankman-Fried, who was convicted of fraud in 2023. FTX’s collapse and ensuing bankruptcy is the focus of Reveal’s new two-part series, The Secret Story of FTX’s Rise and Ruin.
Check out the latest More To The Story here.
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Find this episode wherever you listen to Reveal, and don’t forget to subscribe:
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