After his cryptocurrency exchange went bankrupt, many authorities put him in their sights.
(Photo: Getty Images (2))
Frankfurt, Jerusalem It is arguably one of the biggest crypto scandals in history: the bankruptcy of what was once the third largest crypto exchange in the world, FTX. The US Securities and Exchange Commission, the Department of Justice and a host of other agencies have targeted FTX and its founder, Sam Bankman-Fried. Bankman-Fried – the former star of the scene – was suspected of being a major con man. He is accused of, among other things, piling billions in losses at his Alameda Research hedge fund with FTX clients’ money.
It’s the third major crypto crisis of the year: In mid-May, the Terra crypto project collapsed, wiping out about $50 billion of investors’ assets. And in July, cryptocurrency platform Celsius Network filed for bankruptcy. But what lessons can investors, crypto platforms and regulators learn now from the resurgence of the crisis?
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