News Analysis
The cryptocurrency industry is imploding at a shocking rate.
FTX, which a few weeks ago was considered a “lender of last resort” and a crypto industry stalwart, filed for bankruptcy. Its charismatic founder and (former) CEO, Sam Bankman-Fried, lost a $16 billion fortune in a matter of days. Bankman-Fried, whom a few months ago was compared to John Piermont Morgan and Warren Buffett, is turning out to be an inexperienced operator at best, and a fraud at worst.
We won’t rehash the events that led up to FTX’s bankruptcy and collapse. Suffice to say, the speed of its demise has caught industry leaders, regulators, and investors off guard. FTX’s customers are bracing for the worst. Customers of other crypto platforms that FTX previously bailed out—such as Voyager—are also bracing for the worst. …