FTX has filed for bankruptcy In federal court and that will be a pretty traditional Process of figuring out where the money went. A lot of people who aren't investing in crypto feel like it's all smoke and mirrors And this story sort of confirms it but you're telling us that these are like the two biggest players in crypto How is this all so fake? It is like a tale as old as finance This is exactly what happened with liman brothers when liman brothers collapsed 26,000 employees lost their jobs and millions of investors lost all or almost all of their money. The way that this unraveled is just very basic financial stuff which is why the story is interesting to me.
With the collapse of one of its largest exchanges, crypto’s having its very own Lehman Brothers moment. Semafor’s Liz Hoffman explains the repercussions for the real world.
This episode was produced by Miles Bryan and Amanda Lewellyn, edited and fact-checked by Matt Collette, engineered by Paul Robert Mounsey, and hosted by Sean Rameswaram.
Transcript at vox.com/todayexplained
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