November 18, 2022
On November 6, all hell broke loose when the founder of crypto exchange Binance Changpeng Zhao, known as CZ, said he would sell all the tokens the company owned from FTX, a rival crypto exchange in which he had invested. The value of the FTT token plummeted, essentially creating a bank run, as FTX customers started withdrawing their funds. Only a few days later, mop-top, non-book reading Sam Bankman-Fried, the co-founder of FTX, once the world’s third-largest cryptocurrency exchange, resigned. Not only that, but he announced that FTX would be filing for Chapter 11 bankruptcy. SBF, as he is known to colleagues, tweeted at the time, “I’m really sorry, again, that we ended up here. Hopefully, things can find a way to recover. Hopefully, this can bring some amount of transparency, trust, and governance to them. Ultimately hopefully it can be better for customers.”
So how did we get here?