Lessons from the Crypto Exchange FTX Crash

Lessons from the Crypto Exchange FTX Crash
FTX founder Bankman Fried

After the bankruptcy of his crypto exchange, several executives have kept him in their sights.

(Photo: Getty Images (2))

Frankfurt, Jerusalem This is arguably one of the biggest crypto scandals in history: the bankruptcy of what was once the world’s third largest crypto exchange, FTX. The US Securities and Exchange Commission, the Department of Justice and several other agencies have targeted FTX and its founder, Sam Bankman-Fried. Bankman-Fried – the scene’s former star – is suspected of being a big thief. Among other things, he has been accused of misappropriating billions in his hedge fund Alameda Research with FTX’s client funds.

This is the third major crypto crisis of the year: in mid-May, the TerraCrypto project crashed, wiping out nearly $50 billion in investor assets. And in July, crypto platform Celsius Network filed for bankruptcy. But what lessons can investors, crypto platforms and regulators learn from the new crisis now?

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