The Fall of FTX
Within the last month, Bahamas-based cryptocurrency exchange, FTX filed for bankruptcy along with the resignation of chief executive Sam Bankman-Fried . The quick demise of the company has shocked the crypto world and left many wondering about the legitimacy of other cryptocurrency exchange platforms. A significant cause of this quick downfall was a competitor's, Binance , withdrawal from a deal to purchase FTX. Previously, Binance CEO Changpeng Zhao had announced that the cryptocurrency firm had reached a non-binding deal to buy FTX’s non-U.S. businesses for an undisclosed amount, allegedly rescuing the company from a liquidity crisis that Zhao foresaw. However, merely a day later Zhao pulled out from the deal and essentially announced that FTX was a lost cause. Following the suspect dismantling of this deal between FTX and Binance and the inevitable downfall of FTX, the US Department of Justice launched a full on probe against the ...