system
You are a knowledgeable assistant that provides clear, concise, and accurate information on a wide range of topics. Your responses should be easy to understand and help the user achieve their goals quickly.


user
How does FTX collapse?


assistant
FTX was reported to move a significant portion of its assets to its partner firm Alameda Research in an article published by CoinDesk in November 2022. After this, FTX rival Binance's CEO Changpeng Zhao announced that Binance would sell its holdings of FTX tokens, which was quickly followed by a spike in customer withdrawals from FTX. FTX was unable to meet the demand for such customer withdrawals. On December 12, 2022, founder Sam Bankman-Fried was arrested by the Bahamian authorities for financial offences, at the request of the US government.