News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Hedge Funds

Hedge funds made a killing on FTX — then it got complicated

Investors allege former FTX customers reneged on selling claims to their accounts and are suffering from seller’s remorse

FTX founder Sam Bankman-Fried, center, leaving court in New York last year during his financial fraud trial.
FTX founder Sam Bankman-Fried, center, leaving court in New York last year during his financial fraud trial. Photo: ed jones/Getty Images

The FTX bankruptcy was looking like a hedge fund trade for the ages, set to make hundreds of millions of dollars for intrepid vulture investors. That was before things got messy.

Hedge funds and other distressed investors rejoiced last month when bankruptcy managers said the corporate carcass of FTX, Sam Bankman-Fried’s collapsed crypto exchange, had enough assets to more than make its creditors whole

WSJ Logo