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The downfall of FTX
Description
The crypto world is in shock after FTX, a major cryptocurrency exchange, declared bankruptcy. We discuss what led to the company’s collapse and how its 30-year-old founder went from a philanthropic darling to disgraced CEO.
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What led to the ruin of FTX, one of the world’s biggest cryptocurrency exchanges? It’s the question confounding Silicon Valley — and Washington.
After the collapse, founder and CEO Sam Bankman-Fried stepped down amid claims of mismanagement. Newly appointed CEO John J. Ray III — who oversaw Enron’s bankruptcy proceedings — said in FTX’s bankruptcy filing: “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.” Meanwhile, federal regulators and politicians in Washington have soured on Bankman-Fried, whose millions in campaign donations previously earned him audiences with top lawmakers.
Post economic policy reporter Tory Newmyer unpacks FTX’s downfall and tracks the rise and fall of Sam Bankman-Fried, from his massive political donations and lobbying efforts in Washington to his apology campaign.