Inside the FTX Collapse: A First-Hand Account

The recent collapse of FTX sent shockwaves throughout the cryptocurrency industry, signifying a critical moment in its evolution. Witnessing the chain reaction of failures among major players like BlockFi and Celsius, the calamity spoke to a fragile ecosystem. Sam Bankman-Fried's (SPF) vision crumbled as his former empire collapsed, dragging numerous centralized lending institutions down with it. Founders like myself, having directly engaged with SPF and raised funds from him, were especially attuned to the implications of this fallout. Being at the forefront of the crypto news scene allowed for insight into the dramatic trial that followed. Observing Bankman-Fried's defense strategies and the eventual sentencing of 25 years served as a reflective moment—demonstrating not just his disregard for consequences but a broader warning sign for the market. The court highlighted a calculated method of operation that resembled game theory, bringing to light the need for ethical transparency in the industry. As the dust settles, the crypto community begins to assess long-term impacts and reforms necessary to restore trust and ensure stability, moving forward from this chaotic chapter.