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Crypto crisis.

 


The digital assets industry has been shaken by the near-collapse of Sam Bankman-Fried’s FTX, one of the largest crypto exchanges, which was rescued by arch-rival Binance after a surge in customer withdrawals sparked a liquidity crisis. In an industry that has been called the «wild west» by Wall Street’s top regulator, FTX was widely considered one of the better-managed players, with its founder Bankman-Fried regularly lobbying lawmakers in Washington. Known as SBF and for his unofficial uniform of shorts and T-shirt, Bankman-Fried had a paper fortune of an estimated $24bn only six months ago. He is among the best-known crypto players, often appearing at conferences where he has interviewed the likes of Bill Clinton and Tony Blair.

The deal with Binance ends an explosive and public row between Bankman-Fried and Zhao and will combine two of the world’s biggest crypto exchanges. «This elevates Zhao as the most powerful player in crypto,» said Ilan Solot, co-head of digital assets at Marex Solutions. The crypto industry has struggled over the past year, with the price of flagship tokens bitcoin and ether plunging while several big companies collapsed. The rescue deal is also a setback for Bankman-Fried, long viewed as a relatively stable and ambitious figure in the often shaky world of crypto.
In the wake of this year’s crypto market collapse, he earned a reputation as an industry saviour after aiding failing companies.
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  1. Marcus9 November 2022 at 13:02

    It was a shock to see FTX fall like this but it just goes to show us that anything can happen, with any company. We are living in troubled times and you can't be sure about anything lately. I don't think it's good that Zhao has gotten even stronger in the market. We need more players, not less.

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