The FTX Collapse, Explained | WSJ What Went Wrong

Former CEO Sam Bankman-Fried was hailed as a savior of crypto before FTX’s implosion.

Cryptocurrency exchange FTX was seen as a survivor in a struggling industry, but over the course of six days the exchange collapsed due to a sudden liquidity crunch. WSJ explains the factors that drove FTX’s growth and what led to its downfall. Illustration: Alexandra Larkin

What Went Wrong explores the challenging conditions and decisions that led to a company's downturn.

#WSJ #FTX #crypto

[wsj]

FTX’s new CEO says he’s never seen “such a complete absence of trustworthy financial information…” in his career.

[Briguy]

I've never invested in crypto because I've never understood it. Even if this didn't happen, I still wouldn't understand anyway.

[xxyanlixx]

This could be the fastest hero-to-zero in history.

[lyubovmatyushkina]

Deymon spend hours each day to ensure that something of value is released into the world that has impact on those with an interest and desire to be a part of this platform.

[Swagface]

As J.P. Morgan’s father, Junius Morgan, once declared: “In making haste to be rich, how many fall, slow and sure should be the motto of every young man.”

[southernfriedkiwi]

It's called money laundering and kick back money to politicians, people.

[OPTICXPROTOTYPE]

They have to make an example of SBF and give him the maximum penalty for this kind of violation of trust.

[kekw]

Great work 𝗨𝗣𝗙𝗥𝗢𝗡𝗧𝗛𝗔𝗖𝗞𝗘𝗥𝗦 so glad you are out there fighting these lowlifes. We need to do all we can to spare the elderly and the general public from these despicable scammers!

[paulamcminn]

Hi

Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of it. Not surprising negative market sentiment is so high now, We really need help to survive in this Economy. The fin-Market;s have underperformed the U.S economy as fear of inflation hammers the prices of stock;s and bonds. My portfolio of $250k is down to $172k any recommendation;s to scale up my return;s during this crash will be highly appreciated.

[thecalebgibbs]

I love the "nobody could have seen this." Everyone with a brain has said this is exactly what would happen many times.

[bauttiet.h.u.g.]

It appears giving someone a label/labeling someone a genius is easier than actually being a genius.

[abdulsamar]

When it comes to investment, diversification is key. That is why I have my interests set on key sectors based on performance and projected growth. They range from the EV sector, renewable energy, Tech and Health.

[ExxonMobilCompany]

Several of the biggest market experts have been voicing their opinions on exactly how awful they think the next downturn would be, and how far equities may have to go, as recession draws closer and inflation continues well above the Fed's 2% objective. I'm trying to build a portfolio of at least $850k by the time I'm 60, therefore I need suggestions on what investments to make.

[dayneamyx]

The funny part about crypto, is its basically repeating problems the financial institutions went through. Bank runs, how to classify assets on the BS etc.

[jbone]

"No one could have foreseen -" he literally described what he was doing, on a podcast, more than six months ago.

[velayuthman]

A round of applaud for the great analysis and breakdown of personal perspective. I woke up to the sad news by FTX. The market circumstances are driving me insane, my portfolio has lost almost $18500 this month alone, my earnings are tanking, and I can't see how my retirement will go smoothly when I can't even increase my stagnating reserve. I wonder whether those who lived through the 2008 crash had it

[macdaknife]

When this whole crypto thing got started, I warned everyone I knew to stay away. You’re investing in nothing, and nothing is what you’re gonna get in the end!

[chessdad]

Those investing channels really bowed to him. He wasn't JP Morgan, he was Bernie Madoff. LOL.

[gra-yan]

Eh, after I lost 40% on the FTX drop I decided to keep a closer eye on crypto and my portfolio. So I downloaded the crypto portfolio app. I advise you to do the same

[unnatijani]

I'm DCAing in LibertonCorp as well. ETH heavier DCA and ALGO. I'm taking your advice and starting Google tomorrow with a 50 dollar purchase and continuing Microsoft and Apple. VTI and VOO on another app and longterm portfolio. Here we go family!