• The new report details what really led to the collapse of FTX: hubris and greed.
• It is charged that SBF utilized customer funds to purchase luxury real estate in the Bahamas.
• There was also no cybersecurity department and no controlled framework or oversight of business dealings.
What Led To The FTX Collapse?
A new report has emerged talking about what it was that really led to the destruction and collapse of the FTX digital currency exchange. According to the report, it was merely “hubris and greed” which were responsible for its downfall. Hubris is described as arrogance before the gods, while greed is simply aiming to get their hands on money they didn’t necessarily need. In addition, an incredible lack of competence underlined the many mishaps that occurred behind the FTX walls.
Charges Against SBF
It is said that Sam Bankman-Fried – former head executive of FTX – utilized customer funds to purchase luxury real estate in the Bahamas, where the company was stationed. This was among a few charges faced by SBF for his involvement with FTX’s fall from grace.
FTX Lacked Necessary Precautions
FTX failed to create key executive roles to ensure specific duties were tackled in due time, had no cybersecurity department to keep customer funds safe should mishaps have occurred, and lied to third parties about its funds and business dealings. Lastly, there was also no controlled framework or oversight of business dealings within FTX which accelerated its downfall quickly as it rose through ranks just a few years prior.
The Rise Of FTX
Founded in 2019 (merely four years ago), FTX quickly rose through ranks becoming one of the top three crypto exchanges in world by summer 2021 with people thinking it could not possibly collapse so quickly again – yet here we are today with reports detailing what really happened behind doors at this once promising exchange platform.
In conclusion, hubris and greed combined with other issues such as lack of necessary precautions being taken as well as incompetence within departments at FTX all added up together leading up to its eventual fall from grace – something which will likely be remembered for a long time within digital currency space going forward…