The star of the popular television programme Shark Tank is a well-known bitcoin trader.
An earthquake shock has been felt throughout the industry and beyond as a result of the unexpected collapse of the FTX bitcoin exchange.
Several were taken aback by the financial struggles of the company, which had a valuation of $32 billion in February. In the summer, many failing crypto firms had looked to the company and its CEO.
As a result of the rapid collapse of sibling cryptocurrencies Luna and UST, or TerraUSD, well-known crypto lenders including BlockFi, Voyager Digital, Celsius Network, and Robinhood (HOOD).
Nobody appeared to be aware that Bankman-Fried and the corporation were lying about FTX's business procedures and financial sheet.
As a cryptocurrency exchange, FTX carried out orders on behalf of its customers, taking their money and purchasing virtual currencies. As a custodian, FTX kept the clients' digital currencies.
Then, through the trading division of its sister company, Alameda Research, FTX used the cryptocurrency assets of its clients to generate money through borrowing or market making.
In the summer of 2022, FTX bailed out other crypto institutions with the money it had borrowed.
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