FIN: The Fast Forward on Fintech

FIN: The Fast Forward on Fintech

Share this post

FIN: The Fast Forward on Fintech
FIN: The Fast Forward on Fintech
The FTX Bankruptcy Is Crypto's Biggest Scandal Ever

The FTX Bankruptcy Is Crypto's Biggest Scandal Ever

Plus, "Bitcoin tourists" flee the market.

James Ledbetter's avatar
James Ledbetter
Nov 13, 2022
∙ Paid

Share this post

FIN: The Fast Forward on Fintech
FIN: The Fast Forward on Fintech
The FTX Bankruptcy Is Crypto's Biggest Scandal Ever
Share

Number of the Week: 2 million (explanation below)

The FTX Bankruptcy Is Crypto’s Biggest Scandal Ever

On January 1, 2022, if you had asked anyone in the crypto world what the most earth-shattering event this year would be, the most likely answer would have been how long the crypto winter would last, or perhaps the Ethereum merge, which simultaneously was a big deal yet so far has changed very little.

By contrast, very few people’s crypto bingo cards had an entry reading “The world’s second-largest, and one of its most-respected, crypto exchanges will buy up a bunch of bankrupt crypto companies in the spring, only to find itself bankrupt in November with very serious allegations of embezzlement surrounding its once-prestigious founder and CEO.”

With the possible exception of Elizabeth Holmes and Theranos, it’s hard to think of a harder corporate downfall than that of Sam Bankman-Fried and FTX. And even Holmes’s ultimate descent took months of investigative and prosecutorial investigation before the company evaporated; FTX fell apart in a couple of days, almost entirely as a result of a single news story and some skeptical tweets (plus, you know, being bankrupt, which became official on November 11).

Moreover, while of course Holmes had her high-octane board of directors and prestigious investors, no one could match the reach by which FTX and Bankman-Fried attempted to influence American life, finance and public policy over a very short time period. Consider:

This post is for paid subscribers

Already a paid subscriber? Sign in
© 2025 Holly Sraeel
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share