The Crypto Exchange That “Accidentally” Lost $8 billion

Source: Financial Times
by Joshua Oliver & Nikou Asgari

“It was all an $8bn accident. Or so says Sam Bankman-Fried. As FTX, the crypto business led by the 30-year-old, quickly collapsed at the end of last week, many of its employees fled the Bahamas, the Caribbean country where the company was based. Some simply abandoned their cars at the airport. Within the space of a few days, FTX had gone from being the vanguard of a new crypto economy, with a valuation of $32bn and celebrated by celebrities and politicians, to a humiliating bankruptcy. … the focus of the investigations and legal battles is now on the gaps in the crypto exchange’s balance sheet — and especially $8bn of missing customer deposits. The most innocent version of events that Bankman-Fried can present is that the missing customer funds were simply an oversight.” (11/19/22)