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What FTX’s collapse means for crypto
Podcast

What FTX’s collapse means for crypto



Editorial Rating

8

Qualities

  • Eye Opening
  • Background
  • Hot Topic

Recommendation

Is crypto done, once and for all? Cryptocurrencies have collapsed before, but not on the scale of FTX or with so grandiose an individual at the head of the table as Sam Bankman-Fried. The fact that he could be at ease in the regulatory as well as investor space – and that he had a traditional finance background – seduced investors, note journalists Michela Tindera, Josh Oliver and Katie Martin in this informative episode of the Behind the Money podcast. Opaque financial statements and a lack of disclosure cratered FTX into bankruptcy, bringing digital assets to a crossroads.

Take-Aways

  • FTX founder and CEO Sam Bankman-Fried (SBF) had star power, appealing to various constituencies and embodying what looked to be crypto’s bright future.
  • The firm’s undoing was sudden and rapid.
  • While FTX’s collapse will have a limited effect on the wider financial system, the future of crypto itself remains an open question.

About the Podcast

Behind the Money is a podcast of The Financial Times, where Michela Tindera, Joshua Oliver and Katie Martin are journalists.