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The Collapse of FTX and the Crisis of Sam Bankman-Fried

 
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SBF co-founded Alameda Research & FTX, a cryptocurrency exchange, in 2017. Recently, FTX filled for chapter11

FTX crypto

Sam Bankman-Fried co-founded Alameda Research, a quantitative trading firm, in 2017. A few years later, Bankman-Fried decided to start a cryptocurrency exchange, FTX, in order to fund Alameda Research's initiatives. In time, FTX became one of the world's top three crypto exchanges. However, the misuse of its customers' funds led to a serious crisis that has been compared to the notorious Enron scandal.

The collapse of FTX has stunned the crypto world and left its supporters, including celebrity athletes, red-faced. It also shook confidence in the technology and left many to wonder why bad people happen to good things. Conservative media has seized on the opportunity to criticize Bankman-Fried, who was a Democrat super-donor and had funded progressive media outlets.

Bankman-Fried had made multi-million dollar donations to progressive media firms and causes favored by the left through what he called "effective altruism". However, his comments on being a "woke westerner" playing a "dumb game" in a recent interview with Vox, one of the outlets whose work he had helped to fund, has put in question the statements he had made on issues such as social justice and fighting climate change.

The FTX crisis has put a twist on an age-old question: why do bad people happen to good things? Although its collapse has shaken confidence in the technology and left supporters embarrassed, many still believe that cryptocurrency will transform the way people pay each other. The future of cryptocurrency remains uncertain in the wake of this scandal, but it is clear that its success or failure will be heavily influenced by the actions of its most prominent figures.

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ftx chapter 11tom brady ftx investmentalmeda researchcrypto collapse
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