Technology reporter David Yaffe-Bellany discusses the improbable resurgence of crypto, focusing on FTX's collapse and recovery, the mainstream shift of Bitcoin, regulatory debates, and the need for the crypto industry to address critical issues beyond price.
FTX customers recover losses with interest after founder's legal troubles
Bitcoin ETF approval signals mainstream financial integration and regulatory battles
Deep dives
FTX Founder's Legal Troubles and Remarkable Recovery
FTX founder, Sam Bankman-Fried, faced legal issues after billions were lost in his cryptocurrency exchange. Despite being sentenced to 25 years in prison, a team managed to recover assets, allowing full repayment with interest to customers. The surprising reversal in FTX's fortune aligns with the crypto industry's unexpected resurgence.
Investments and Solana's Surge in Value
Sam Bankman-Fried invested in AI companies like anthropic and cryptocurrencies, aiming to safeguard against financial risks. Investments in AI firms yielded profitable returns, notably with anthropic amassing substantial value. The sale of Solana, a cryptocurrency retained by FTX, surged in worth, contributing to the billion-dollar repayment.
Cryptocurrency Market Resurgence and Bitcoin's Inclusion in US Economy
Bitcoin's integration into mainstream financial systems via ETFs marked a significant shift. The approval of Bitcoin ETFs facilitated mass market investment and inflow of funds, with Bitcoin price hitting record highs. The battle between the federal government and crypto industry for regulatory control could shape the future of digital currencies in the US.
This month, customers of FTX — Sam Bankman-Fried’s cryptocurrency exchange, which collapsed in 2022 — were told that they would get their money back, with interest.
David Yaffe-Bellany, our technology reporter, explains what was behind this change in fortune and what it says about the improbable resurgence of crypto.
Guest: David Yaffe-Bellany, a technology reporter for The New York Times, covering the crypto industry from San Francisco.
For more information on today’s episode, visit nytimes.com/thedaily. Transcripts of each episode will be made available by the next workday.
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