>1. Is that actually what happened? Yes, this is our best guess based on all current facts. https://www.bloomberg.com/opinion/articles/2022-11-09/bankman-frie

>1. Is that actually what happened? Yes, this is our best guess based on all current facts. https://www.bloomberg.com/opinion/articles/2022-11-09/bankman-fried-s-ftx-had-a-death-spiral-before-binance-deal https://www.bloomberg.com/opinion/articles/2022-11-09/bankma... "The problem is that FTX took its customers’ money and traded it for a pile of magic beans, and now the beans are worthless and there’s a huge hole in the balance sheet." >2. If the answer to #1 is yes, why does this still keep happening? We're in 2022, how many times has this played out, already? This is a common occurrence during bear markets. The non-US crypto exchanges are (self|minimally|un)regulated. FTX is the biggest blow-up, and surprised many experienced people. As Warren Buffet says: “It's only when the tide goes out that you learn who's been swimming naked.” It's also rumored that FTX/Alameda were hit hard by the LUNA/Terra collapse early this year. They may have tried to cover it by manipulating the tokens they control, and trading with customer deposits. It's not unique to crypto. LME (London Metals Exchange) had an issue this year with someone short nickel that didn't want to payout. Also, Archegos capital ran up much more leverage than they should, which resulted in loses at several prime brokers. This was due to the brokers not margin calling them sooner. Credit Suisse had to close their broker services unit afterwards.