of its value was locked up in its own token. so, ftx had created this token called ftt. turns out a lot of their value was just based on the value of ftt, which is not really backed by anything. well, this is the issue, isn t it? and it is extraordinary how quick this all happened, isn t it? i suppose itjust shows how vulnerable it is. yeah, it happens so fast, and it goes to show i mean, nothing is ever as it seems in crypto. this happened seemingly overnight and sam bankman fried, the ceo and founder of ftx, was held in very high regarding the crypto industry. he was lobbying in washington. he was seen as a figurehead for the entire sector and so, to see his company fall from grace so quickly and to know that they have these underlying issues this whole time and didn t reveal that to the public is very troubling. so, what was it? did he just stretch himself too thin, then? did he try to do too much? what was the problem? i believe that there was a little bit more intent behind it t
theirjourney for now may be over, but the storm between two eu allies is whipping up. mark lowen, bbc news, rome. the cryptocurrency platform ftx has gone bust and its chief executive sam bankman fried has resigned. worries about ftx have caused huge problems for crypto investors recently. ftx is one of the biggest and has gone under, despite attempts by another huge exchange, binance, to rescue it. tom brada reports. once a star of the crypto world, its reputation is now in tatters. the crypto currency exchange ftx is filed for bankruptcy in the us. shaking confidence in the sector and leaving thousands of customers worried about their money. i think it s undeniable that worried about their money. i think it s undeniable that this is a black eye on the crypto industry. this was seen as an incredibly established, blue chip company to the extent
building codes were introduced. the cryptocurrency platform ftx has gone bust and its chief executive sam bankman fried has resigned. worries about ftx have caused huge problems for crypto investors recently. ftx is one of the biggest and has gone under despite attempts by another huge exchange, binance, to rescue it. tom brada reports. once a star of the crypto world, its reputation is now in tatters. the cryptocurrency exchange ftx has filed for bankruptcy in the us, shaking confidence in the sector and leaving thousands of customers worried about their money. i think it s undeniable that this is a black eye on the crypto industry. this was seen as an incredibly established, blue chip company to the extent they exist in crypto. the problems began last week with questions raised about the compa ny s financial structure. that uncertainty led to a run on the exchange similar to a run on a bank,
at is contagion. how far will this spread? now, it may, luna was a big crypto that came crashing down and brought a lot of big players. this industry is very matched in one another. ironically, the company that really tempt down on that was ftx and sam bankman-fried who started buying all these distressed assets. people compared him to jpmorgan during the great depression. well, now it is ftx and spf, that he is known, sbf sam bankman-fried has collapsed. so, how bad will this go? i talked to one former sec official who told me it s a death spiral and a blood bath all in one. the contagion has just begun to spread and nothing can slow it down. as john reads, former as you see official. so how far will this go? stay tuned. i just have to wonder, is this going to shape up, as just another one of those, i don t want to call it a ponzi scheme, but a get rich quick scheme. i mean, a lot of people thought for that. oh, i think it s hard not to