A number of institutional investors suffered heavy losses as cryptocurrency exchange FTX unexpectedly went bankrupt last week.
The cryptocurrency platform, which had been controlled by 30-year-old multibillionaire Sam Bankman-Fried, filed for bankruptcy two weeks ago after users discovered that trading firm Alameda Research, a company run by former love interest Caroline Ellison, had allegedly been using consumer holdings from FTX to make investments.
Bankman-Fried and his colleagues were treated as wunderkinder by lawmakers and journalists, as well as multiple celebrities who set the power of their brands behind the now-defunct overnight success. Several venture funds and pension plans, which had previously graced FTX with investments implying a valuation above $30 billion, were caught in the mayhem. Read more…
