Samuel Bankman Fried files for bankruptcy
Who is Samuel Bankman Fried?
An entrepreneur and a multi-billionaire from the US is literally fried now as his cryptocurrency exchange FTX has fallen flat in November 2022, FTX now faces an insolvency crisis as its own cryptocurrency FTT has collapsed.
FTX exchange was founded by Samuel Bankman Fried in 2019.
Bankman left no stone unturned for the promotion of his crypto exchange FTX, FTX bought the sports sponsorship of formulae one racing car, Politically Democrats were funded hugely by Bankman fried, and influential people were invited as guests and speakers in FTX conferences, even ex-president Bill Clinton spoke at FTX conference, FTT investor includes big name like football star Tom Brady.
Samuel Fried fortune of $29 billion is now reduced to just 990 million in November 2022.
Under Bankman Fied FTX had grown to be the third largest crypto exchange by volume, the sudden collapse of FTX has put all the crypto invetors and lovers in shock.
The reason for the Collapse is said to be the possibility of Bankman Fried using the customer investment of FTX in BACKMAN-FRIED’S hedgefund at ALAMEDA RESEARCH, it’s a violation of US Securities law.
FTX’s downfall started when Coindesk published the leaked balance sheet of Almeda research, it came in open about the FTX relation with Almeda, and that FTX is lending its token FTT in high quantities to Almeda to help it build cash, this resulted in retail and other investors panicking and then the mass withdrawal of funds from FTX which ultimately led to its collapse.
Binance founder and CEO Changpeng Zhao is said to have triggered the withdraw when he said that binance would sell its holding in FTX crypto FTT
November 23rd 2022-Two of the senators Elizabeth Warren and Sheldon Whitehouse from US senate have appelaed with the Attorney General Merrick Garland to investegate the fall of crypto exchange FTX with utmost scrunity, in the letter they say that they suspect that fall of FTX was not because of poor management but was deliberately done and it was a intentional and fraudalant tactic
Lesson we should learn from FTX crypto exchange fall
The collapse of the FTX crypto exchange was a reminder of the importance of being aware of the risks associated with investing in cryptocurrency. It’s essential to be aware of the underlying factors that can impact the value of a crypto asset, and to always keep in mind that crypto markets can be extremely volatile. Additionally, it’s important to diversify investments across different crypto exchanges and to ensure that you’re only investing in assets that you understand. Finally, it’s important to do your own research and develop an understanding of the underlying technology and the associated risks before investing. By understanding the risks involved and keeping these lessons in mind, investors can make smarter decisions when it comes to their investments.
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