Why did FTX collapse?

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Markets & News

Bankman-Fried explains why FTX collapsed in new letter to employees (3 minute read)FTX founder Sam Bankman-Fried apologized to his former colleagues and explained why the crypto exchange failed in a new letter. The letter, sent Tuesday and reviewed by The Block, says that a series of events resulted in the collapse of FTX. It started with the market's crash in Spring, followed by credit "drying up" and ending with customers withdrawing their funds en masse, Bankman-Fried said.

Two Estonian Citizens Arrested in $575 Million Cryptocurrency Fraud and Money Laundering Scheme (4 minute read)Two Estonian citizens were arrested in Tallinn, Estonia, yesterday on an 18-count indictment for their alleged involvement in a $575 million cryptocurrency fraud and money laundering conspiracy. Sergei Potapenko and Ivan Turõgin, both 37, allegedly defrauded hundreds of thousands of victims through a multi-faceted scheme. They induced victims to enter into fraudulent equipment rental contracts with the defendants’ cryptocurrency mining service called HashFlare.

Bankman-Fried's FTX, senior staff, parents bought Bahamas property worth $300 mln (4 minute read)Sam Bankman-Fried's FTX, his parents and senior executives of the failed cryptocurrency exchange bought at least 19 properties worth nearly $121 million in the Bahamas over the past two years, official property records show. Separately, attorneys for FTX said on Tuesday that one of the company's units spent $300 million in the Bahamas buying homes and vacation properties for its senior staff, and that FTX was run as a "personal fiefdom" of Bankman-Fried.

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Tech

Ethereum supply on trend to drop below pre-Merge levels (3 minute read)The supply of Ethereum's native asset ether (ETH) appears on trend to deflate to pre-Merge levels as a result of more coins being burned than created for the last few weeks, on-chain data shows.

Could Payin3 be the next big thing in crypto? Interview with Uquid CEO Tran Hung (3 minute read) Over the past few years, the BNPL (buy now, pay later) financing option has taken online retail shopping by storm. In nearly all sectors, consumers now have a number of options allowing them to pay for goods and services in installments without having to break the bank. Now, one project is trying to do the same with crypto. 

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