The 2022 crypto industry bloodbath shattered everyone's perception of financial scams — the once valued at $32 billion FTX went from "industry golden child" to a global laughingstock.

The story's logic is actually simple: Post-90s founder SBF crafted a persona as the "Warren Buffett of the crypto world," spending heavily on advertising, paying celebrities for endorsements, and within just three years, pushing FTX to become a top-tier exchange. But behind the scenes, it's a classic "self-sustaining cycle" — issuing FTT tokens, using user funds to feed related company Alameda, and then using FTT as collateral for financing. In other words, it's supporting air with air.

In November 2022, the dramatic reversal occurred. When a major exchange announced it would liquidate $580 million worth of FTT, everyone understood — this grand empire had no foundation. Within 48 hours, over $6 billion in withdrawal requests flooded in, and FTX's liquidity evaporated instantly. FTT plummeted from $22 to below $3, a drop of over 90%. SBF's personal wealth evaporated by 105.7 billion yuan in a day, transforming from billionaire to inmate in seconds.

The most heartbreaking part is the fate of the investors: Sequoia's $213 million went down the drain, Temasek's $275 million was lost entirely, and SoftBank was no exception. By the time bankruptcy liquidation arrived, the funding gap had expanded to over $8 billion. The details uncovered are even more ironic — SBF used borrowed money to buy luxury homes, make political donations, and indulge in luxury goods, ultimately being sentenced to 25 years in prison, with assets exceeding $11 billion confiscated.

This case has written the textbook on the credit crisis in the crypto market — under the dual push of regulatory vacuum and packaging financing, even the most grand stories will eventually be exposed.