FTX Founder Sam Bankman-Fried is facing a world of criticism and debt to be paid, since the company began enduring its failures and investigations. Now that FTX has filed for bankruptcy, likely owing money to over one million creditors, Bankman-Fried’s trials of desperation are just getting started.
Arguably one of the biggest phenomenons in tech-financial history, the company’s collapse overnight is certainly a model for disbelief. But the hardest thing to watch, for frequent crypto investors, is the U.S. Securities and Exchange Commission’s (SEC) unscrambling of all of FTX’s problems.
Starting with the offshore accounts that Bankman-Fried opened, each deposit draws more attention to the company’s risky mishandling of customer’s investments. Since FTX was never registered in the U.S. for the extraneous borrowing that the company used to fund its Alameda Research fund, many investors pulled away from the company to save their own funds.
The quick exits from customers around the globe caused a massive and destructive influx of withdrawal alerts to FTX, rushing them into bankruptcy overnight.
As the SEC begins their FTX investigations, talks of regulation being a necessity have made their rounds throughout the White House again. And especially after the recent assessments of fallen prices of Bitcoin, Ethereal and the market price of gold, investors and the government have grown fearful of throwing more money into the crypto pit.
“SBF” has vanished from the billionaire’s tables and FTX looks to have no upside as of now, even after an attempt to sell its assets to rival company Binance.
Binance CEO Changpeng “CZ” Zhao tweeted on Nov. 9, “As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged U.S. agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com.”
With FTX’s challenges growing, and many other companies falling, the good in crypto currency is certainly unclear to the majority of major investors.