“House of Cards”
Headlines swirl about FTX founder Sam Bankman-Fried, his arrest in the Bahamas, and the downfall of his cryptocurrency company.
Here's What To Know:
"We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto."
U.S. Securities and Exchange Commission Chair Gary Gensler on a civil lawsuit filed against Bankman-Fried on Tuesday. The SEC (oversees financial exchanges, trading, mutual funds, etc.) alleges Bankman-Fried “improperly diverted” FTX customer funds into his crypto hedge fund company, Alameda Research, and then used those funds to make investments, political donations, and purchase real estate without telling investors.
The Fall of FTX
Why It Matters
Who is SBF?
What is cryptocurrency? Crypto is a type of digital currency that has no central authority, meaning it does not follow the rules of a central authority like a bank or government. It can be used to buy many everyday goods and services and is also an investment, like stocks. Bitcoin and Ethereum are two of the largest cryptocurrencies.
FTX was a cryptocurrency exchange which promoted “the liquidity and transacting of coins and tokens. FTX allowed users to connect their wallets, place trades, exchange digital currencies, enter into derivative contracts, or buy/sell NFTs” (Investopedia).
FTX founder charged in scheme to defraud crypto investors (The Associated Press)
FTX Founder Sam Bankman-Fried Led Yearslong Faud at Company, SEC says (The Wall Street Journal)
The Parents in the Middle of FTX’s Collapse (The New York Times)
by Jenna Lee,