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Is there a good start-to-finish summary of this? I don’t really pay attention to crypto at all, but this keeps coming up.
by teeray 4y ago
Is there a good start-to-finish summary of this? I don’t really pay attention to crypto at all, but this keeps coming up.
- justapassenger 4y agoFTX was one of a biggest crypto exchanges (think - stock market), ran by bunch of smooth talking friends/lovers, who were more interested in playing games and Harry Potter than running a company. They amassed hundreds of millions of dollars in investments, from serious companies (who were impressed by their recklessness) and billions of dollars in deposits from customers. They donated millions to politicians and spent even more on ads (including Super Bowl). They stole those money, and partially pocketed it/moved it to their hedge fund (which they managed on a principle of “you don’t need to know math or finance” and “risk management is dumb”) that lost majority of it and triggered their fall. They did all of that, while being run with less financial and corporate discipline than a neighborhood dog walking business by a teenager.
- justusthane 4y agohttps://en.wikipedia.org/wiki/FTX_(company) https://en.wikipedia.org/wiki/FTX_(company) does a pretty good job, I think.
- kyawzazaw 4y agohttps://newsletter.mollywhite.net/ https://newsletter.mollywhite.net/
- hackerlight 4y agoFTX embezzled customer's deposits by giving it ("loan") to Alameda. Alameda then lost it.