The downfall of FTX
The crypto world is in shock after FTX, a major cryptocurrency exchange, declared bankruptcy. We discuss what led to the company\u2019s collapse and how its 30-year-old founder went from a philanthropic darling to disgraced CEO.
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What led to the ruin of FTX, one of the world\u2019s biggest cryptocurrency exchanges? It\u2019s the question confounding Silicon Valley \u2014 and Washington.
After the collapse, founder and CEO Sam Bankman-Fried stepped down amid claims of mismanagement. Newly appointed CEO John J. Ray III \u2014 who oversaw Enron\u2019s bankruptcy proceedings \u2014 said in FTX\u2019s bankruptcy filing: \u201cNever in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.\u201d Meanwhile, federal regulators and politicians in Washington have soured on Bankman-Fried, whose millions in campaign donations previously earned him audiences with top lawmakers.
Post economic policy reporter Tory Newmyer unpacks FTX\u2019s downfall and tracks the rise and fall of Sam Bankman-Fried, from his massive political donations and lobbying efforts in Washington to his apology campaign.