FTX was supposed to be the future – a safe, reliable and innovative way to trade digital currency. Instead it has unleashed a financial meltdown
FTX seemed to be a shining example of a cryptocurrency exchange that was doing everything right. Run by Sam Bankman-Fried – a multibillionaire, believed by many to be a once-in-a-generation genius, who rubbed shoulders with congresspeople and called for “thoughtful regulatory leadership” – FTX and its sister companies were bringing crypto to the mainstream. They spent millions on a Super Bowl ad comparing crypto to the invention of the wheel and the lightbulb, urging customers not to “miss out” on “the next big thing” and touting FTX as “a safe and easy way to get into crypto.” During the crypto downturn this past year, Bankman-Fried was compared to JP Morgan for the seemingly endless pile of cash he had to offer floundering crypto firms as he swooped in as a savior.
In the span of one week, his empire came crashing down.
Molly White is a researcher, software engineer, and the creator of the website Web3 is Going Just Great