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How One Of The Largest Crypto Exchanges Went From Banking Billions To BankruptcyExchange reserves were depleted, exacerbating the risk of insolvency, after FTX management allegedly misappropriated at least $8 billion in customer deposits. FTX, the bankrupt cryptocurrency exchange that was run by Sam Bankman-Fried, said it expects to fully repay its customers, according to a. The Earn program was halted during a crypto market crash in November , and its failure has spurred litigation between Genesis, Gemini, and.