Key Takeaways
- The collapse of FTX is already going down as one of the most severe crypto-related frauds in history.
- Over the course of a week, Sam Bankman-Fried’s carefully-curated empire was shattered along with his reputation.
- While it’s not know how many have been hurt by the scam, we do know who some of the biggest victims are so far.
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FTX and its affiliated trading firm Alameda Research have been exposed. A November 2 CoinDesk article revealing Alameda’s troubled finances put a series of events in motion that eventually exposed FTX as insolvent.
Former FTX CEO Sam Bankman-Fried secretly used customer funds to bail out FTX’s sister company Alameda Research, resulting in an estimated $10 billion hole in the exchange’s books. To make matters worse, Bankman-Fried covered up his fraudulent activities for months, leaving investors, customers, and even his own employees in the dark right up until FTX declared bankruptcy on November 10.
In the aftermath of arguably the most earth-shattering deception in crypto history, Crypto Briefing takes a look at who and what has lost the most from Sam Bankman-Fried’s monumental grift.
Venture Capital
During its heyday, FTX attracted huge investments from some of the most prominent and well-funded venture capital firms in the world.
In July 2021, the exchange raised $900 million at an $18 billion valuation from over 60 investors, including crypto heavyweights such as Coinbase Ventures, Sequoia…
