What caused the FTX collapse In the world of crypto, the collapse of FTX stands as a stark reminder of the inherent risks in the digital industry. Once a towering figure in the crypto landscape, FTX's rise and downfall serve as a cautionary tale, exposing the signs of financial red flags. If you’re curious about how one of the top exchanges in the world saw its demise, here’s a guide on everything you need to know about the fall of FTX: FTX and its rise in the crypto market Before the FTX crypto collapse, the platform was known to be one of the most popular crypto exchanges worldwide.