Why did one of the world’s biggest cryptocurrency exchanges just collapse? | Molly White

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