The FTX Collapse: A Crypto Crisis

This chapter examines the dramatic downfall of the cryptocurrency exchange FTX, detailing the $8 billion liquidity crisis and the consequences of risky lending practices to its affiliated firm, Alameda. It highlights key events, including Binance's withdrawal from a potential acquisition and regulatory scrutiny over both firms. The chapter underscores the repercussions of FTX's collapse on the wider cryptocurrency industry, leading to significant price declines and increasing skepticism from institutional investors.