Sam Bankman-Fried’s crypto exchange files for bankruptcy

It is over. ftx, once the third-largest cryptocurrency-trading platform and crown jewel in the empire of Sam Bankman-Fried, the firm’s enigmatic founder, has filed for bankruptcy. Mr Bankman-Fried, who was an advocate for better crypto regulation, mixed with the high and mighty in Washington and had long been perceived as one of the most trustworthy people in an untrustworthy industry, has resigned as its chief executive and is reportedly being investigated by American regulators. He is also winding down his proprietary trading firm, Alameda, and his American exchange, ftx.us. A week ago Mr Bankman-Fried was estimated to be worth $15.6bn, thanks to the success of these businesses. Now all are worthless. His empire, wealth and reputation have been eviscerated.

It was only on November 2nd that CoinDesk, a news website, published Alameda’s balance-sheet, revealing the incestuous nature of its relationship with ftx. It later emerged the exchange had lent $10bn of the $16bn of…

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This article was written by and originally published on www.economist.com