FTX’s stunning collapse: what really happened
Join Our Telegram channel to stay up to date on breaking news coverage The scenario of what transpired in this case seems somewhat of a classic: one rival, Binance, saw a chance to try to eliminate another, FTX, and took it. One definitely won and one clearly lost in this economic battle between the two founders of cryptocurrency exchanges. In reality, however the story is much more convoluted. It turns out that the main reason why Binance was able to do that were the big mistakes FTX did and the ponzi-style gambles it did with investors’ money. Binance was established in 2017 and has since grown to become the largest cryptocurrency exchange in the world by Changpeng Zhao, a Canadian citizen of Chinese descent. In 2017, Bankman-Fried established the quantitative trading company Alameda Research, which specialized in digital assets. In 2019, he established the FTX exchange. Bankman-Fried stopped overseeing Alameda’s daily operations, although the two organizations re...