The online gaming industry has faced a significant setback after the FTX collapse, and the shutdown of Storybook Brawl is one of its latest casualties. Good Luck Games LLC, the studio responsible for developing Storybook Brawl, was acquired by the U.S. division of FTX in March 2022. The now-defunct exchange had previously desired to incorporate the studio into its games development division.
On behalf of everyone on the SBB team, we’d like to thank you for your support. We’ve explored different options, and unfortunately there is no path forward. We’ll be shutting down the servers on May 1st – please enjoy SBB until then, and thanks for all the memories ♥️
— Storybook Brawl (@StorybookBrawl) April 25, 2023
Sam Bankman-Fried (SBF), the co-founder of FTX, expressed his fondness for the game and mentioned his desire to set a higher standard for the ethical integration of gaming and Bitcoin transactions.
However, things took a turn for the studio when FTX collapsed in November 2022. Following the bankruptcy announcement, Storybook Brawl canceled their World Championship match, initially scheduled to hold in The Bahamas.
Meanwhile, after the exchange’s collapse, a new management team was appointed to spearhead the attempt to recover all missing investor funds. Recently, FTX’s new team attempted to gain control of over $440 million in Robinhood Markets shares linked to Alameda Research. The exchange’s new CEO, John J. Ray III, stated that the 56 million Robinhood shares purchased by SBF rightfully belong to FTX and should be secured until the competing creditors’ claims are resolved.
Earlier this week, rumours began circulating that FTX may have another opportunity to revive its cryptocurrency exchange following Tribe Capital’s proposal to acquire the exchange for $250 million. Since the news broke, the value of the FTX token (FTT) has increased, although negotiations are ongoing, and no official decision has been made yet.
Also Read: Taiko Halts Bridge Operations After $1.7 Million Exploit
Attempts were made to bring the studio back
Court documents filed during the FTX bankruptcy proceedings show that Good Luck Games co-founder Matthew Nass attempted to repurchase the studio in November 2023 and again in October 2024.
According to the filing, the proposals sought to acquire Good Luck Games for a fraction of the amount paid when FTX acquired the company in 2022. The FTX estate did not agree to the proposals. The filing also said Storybook Brawl’s servers had already been shut down in May 2023.
Storybook Brawl’s shutdown became one of the clearest examples of how the FTX collapse affected companies outside cryptocurrency trading. The bankruptcy did not only affect customers, creditors and crypto businesses. The exchange had also invested in companies across sectors including gaming, and those businesses were subsequently caught up in the bankruptcy process.
As of 2026, Storybook Brawl remains offline. The game’s servers were permanently decommissioned on May 1, 2023, and there is no confirmed relaunch of the original online service.
Enjoyed this? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads, and CoinMarketCap Community for seamless access to high-quality industry insights
Take control of your crypto portfolio with DEFI PLANET PRO, DeFi Planet’s suite of analytics tools.
