The Friday/FTX Focus: Issue 59

Arguably the worst hit to the crypto industry ever took place this week. FTX, one of the largest crypto exchanges in the world, collapsed. A week full of rumors, wild accusations, and crashing prices, but don’t worry; we’re here to summarize it for you.

The FTX Collapse

This situation is a mess. Some of the information here might be outdated by the time you read this, and we might have missed today’s breaking news, but this is our attempt to give you some sort of overview of the situation.

So:

  • FTX reportedly used customers’ funds to prop up Alameda Research and has now filed for Chapter 11 bankruptcy.

  • Yes, one of the largest crypto companies in the industry was playing with customers’ money. An embarrassment for the industry, but it also reminds us of what an unregulated wild west this still is.

  • The beloved CEO of FTX, Sam Bankman-Fried, a self-proclaimed supporter of effective altruism, friend of politicians in Washington, and the world’s richest 30-year-old just a week ago, went from hero to zero.

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