Cryptocurrency exchange platform FTX experienced a liquidity crisis that led to the company’s bankruptcy and erased the fortune of Sam Bankman-Fried, its young billionaire founder.
FTX, which is headquartered in the Bahamas, was launched in 2019 and had accrued more than one million users by 2022. Users suddenly demanded $6 billion in withdrawals after an article published by CoinDesk revealed last week that the two arms of Bankman-Fried’s cryptocurrency empire, FTX and Alamada Research, had significant overlap on their balance sheets in the form of the cryptocurrency FTT, which FTX invented. Rival firm Binance, which had been planning to purchase FTX, announced that it would discharge all holdings in the coin and eventually reversed course on the acquisition.
“Every time a major player in an industry fails,