2min chapter

Clearer Thinking with Spencer Greenberg cover image

The FTX catastrophe (with Byrne Hobart, Vipul Naik, Maomao Hu, Marcus Abramovich, and Ozzie Gooen)

Clearer Thinking with Spencer Greenberg

CHAPTER

The Credit Crunch - What Happened to FTX Ventures?

FTX Ventures was a large money sink. Luna crashed to zero, sending reverberations across the crypto world as they wiped out – negative 800 BB in market value. Alameda lost a lot from giving out loans to firms who defaulted. SPF had two choices at this point, let Alameda get liquidated, or send user money from FTX to ensure Alameda's survival. As you read online, SPF chose the latter. From this point onwards, it was just a ticking time bomb before the truth was found out and both FTX and Alameda liquidated.

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