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No, it was also a cryptocurrency problem: 1. FTX got away with this for so long, in part because they weren't subject to the auditing and scrutiny of tradition
by eiirv33 3y ago
No, it was also a cryptocurrency problem:
1. FTX got away with this for so long, in part because they weren't subject to the auditing and scrutiny of traditional finance.
2. Volatile crypto prices exacerbated the issues caused by alameda's borrowing.
3. Sam could pretend that FTX had more assets than it really did thanks to FTT, a crypto coin with no inherent value, and an artificially inflated price.
This was a banking problem, sure. But most banks didn't have this problem. The manipulated nature of cryptocurrency markets and the legal gray area it operates in facilitated this scam.