The collapse of cryptocurrency exchange FTX amid reports at least $1 billion in client funds disappeared has prompted comparisons to notorious financial scandals in recent decades.
Kraken incoming CEO Dave Ripley addresses the FTX hack, telling"The Claman Countdown" that the customer who tried to use a Kraken wallet has been identified.Lehman Brothers collapse
The failure of Lehman Brothers at the peak of the 2008 financial crisis remains the largest bankruptcy in U.S. history to date, as the investment bank had more than $600 billion in assets on its books at the time of its implosion. It had invested heavily in mortgage-backed securities that included subprime and lower-rated mortgage assets.Lehman's failure prompted a financial contagion that affected several other major financial institutions, which in turn led to a global recession.
. Trustee James W. Giddens was ultimately able to return more than $115 billion to customers and creditors.Enron pursued bankruptcy protection in 2001 after it was discovered the massive energy firm had engaged in shady off-the-books accounting practices. The company ultimately collapsed, costing $74 billion in shareholder funds and sending thousands of employees to the unemployment line.Enron's bankruptcy filing was the largest in U.S. history at the time.
Disgraced financier Bernard Madoff leaves U.S. District Court in Manhattan, New York, Jan. 5, 2009. AP Photo/Kathy Willens, FileMadoff's scheme came to light in 2008 when investors who were unnerved by deteriorating financial conditions rushed to withdraw funds they had invested with his firm, leaving it unable to meet their requests. Madoff was ordered by a court to pay $170 billion in restitution and was sentenced to 150 years in federal prison, where he died at the age of 82 in 2021.
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