• The new report about FTX states that the cause of its collapse was “hubris and greed”.
• The company failed to create key executive roles, had no cybersecurity department, and lied to third parties.
• FTX rose to become the third largest crypto exchange in 2021 but quickly collapsed due to these issues.
What Really 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” that caused this downfall – arrogance before the gods (everyone at FTX had tremendous egos) and people seeking money they didn’t necessarily need (customer funds being used for luxury real estate in Bahamas).
Incompetence Behind Mishaps
The debtors‘ report also suggests that an incredible lack of competence underlined the many mishaps that occurred behind the FTX walls. For example, there were no executive roles created to ensure specific duties were tackled in due time and no cybersecurity department set up should mishaps have occurred. There was also no controlled framework or oversight of business dealings which undoubtedly played a role in their rapid fall from grace.
FTX: A Brief History
Founded in 2019 (merely four years ago), the company quickly rose through the ranks to become the third largest crypto exchange in the world by summer 2021 – much to everyone’s surprise. Unfortunately, this rise did not last as long as expected and due to their reckless behavior, they soon collapsed as quickly as they had grown.
Charges Against Former Head Executive Of FTX
The former head executive of FTX – Sam Bankman-Fried – is now facing charges related to this incident including using customer funds for personal gain (luxury real estate). This further proves how little regard he had for his customers‘ funds which ultimately led him down this path of destruction.
Conclusion
The fall of FTX is likely to go down as one of the most embarrassing occurrences within the digital currency space – proving how hubris and greed can lead even an empire such as theirs toppling over so easily if left unchecked.
