It’s time to regulate crypto
Explain It to Me
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Alameda's Bankruptcy Turned Into a Debacle
CZ: In finance, people sell all the time, but they don't announce it. And so having somebody this prominent with this large of a position in FTT announced that he was selling, essentially what he did was like kneecap the company. The value of FTT begin to really fall. Couple days later, CZ is like, hey, I've signed a letter of intent to buy FTX and stop what is essentially a bank run. It turns out that there's this enormous hole in the balance sheetThat customer funds have been lent explicitly against the terms of service of FTX, by the way, to Alameda.
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