Why did FTX collapse?

FTX, backed by elite investors like BlackRock and Sequoia Capital, rapidly became one of the biggest crypto exchanges in the world. Its collapse was preceded by the decision to lend billions of dollars’ worth of customer assets to fund risky bets by Alameda, Bankman-Fried’s crypto hedge fund, The Wall Street Journal reported on Thursday.

Did FTX steal $473 million in crypto assets?

The Bahamas probe came a day after the bankrupt exchange said it was launching an investigation of its own. On Saturday, FTX said it was looking into whether crypto assets were stolen. Crypto risk management firm Elliptic said $473 million in crypto assets appear to have been nabbed from FTX.

How will the FTX fiasco affect cryptocurrencies?

The broader consequences of the FTX fiasco for the cryptocurrency industry will take time to unfold. As the largest collapse in the short history of cryptocurrencies, FTX may further deter investors, who already are cautious because of concerns about stability and security.

Will Sam Bankman-fried's FTX collapse be a financial debacle?

The collapse of Sam Bankman-Fried’s FTX looks set to go down as one of the great financial debacles of all time. Photograph: Stefani Reynolds/AFP/Getty Images T he epic collapse of wunderkind Sam Bankman-Fried’s $32bn (£27bn) crypto empire, FTX, looks set to go down as one of the great financial debacles of all time.