Another week and it seems almost guaranteed that another fraud, failure, or disaster will emerge in the cryptocurrency world. The latest is the bankruptcy of FTX, a cryptocurrency exchange and trading business founded by Sam Bankman-Fried (SBF for short) and said to be the second or third largest in the space, depending on who you listen to. At last count, the $32 billion FTX was valued at, based on the last time it raised capital from investors (it was privately held) has gone up in smoke. Then there’s an apparent $10 billion in customer assets or deposits on FTX, with potentially $8 billion needed to make them whole.
What went wrong? There’s many and varied allegations flying around. Fraud, theft, ponzi scheme, massive money laundering operation. FTX also had a sister hedge fund called Alameda Research and the links between the pair are important.
Read the full Lessons From the Fall of FTX post.
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