Understanding FTX’s Crash

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The FTX collapse wasn’t a one-day event. Instead, it spanned almost two weeks, seeing twists at every turn. We might not have seen the end of it yet. Currently, the once-second-largest crypto exchange by volume seems to be breathing its last after experiencing irreparable damage. And with the collapse comes several questions: how did FTX even get there, what will happen to the customer funds stuck in FTX, and when will these FTX-driven shockwaves cease to have any effect on the market, and so on and so forth? More here.

This guy spotted the problem

“Nothing here fits. Everything reads like it’s a complete scam. This thing is dirty and rotten to the core.” Watch Marc Cohodes’ blistering, excoriating attack of FTX to Hedgeye CEO Keith McCullough MADE ON OCTOBER 11… a month before the shit hit the fan.

https://app.hedgeye.com/insights/122943-marc-cohodes-ftx-is-dirty-rotten-to-the-core-hedgeye-investing-s?

The celebrities who shilled for FTX are being sued for failing to perform due diligence and pitching a Ponzi scheme.

The class action suit alleges Bankman-Fried and certain celebrities promoted and encouraged others to invest in FTX, which the lawsuit describes as a “fraudulent scheme.” The lawsuit claims FTX was “designed to take advantage of unsophisticated investors from across the country, who utilize mobile apps to make their investments.”

Going after these celebrities makes sense as they have known assets.

So where’s the money?

Birds of a feather