FT News Briefing FTX founder’s mega mea culpa
Nov 11, 2022
US stocks experienced their strongest surge in over two years following a dip in inflation. The founder of a major crypto exchange publicly apologized for its collapse, revealing financial misjudgments that hurt many clients. Meanwhile, a breakaway firm from PwC is navigating the tricky waters of Western sanctions, offering services to clients with ties to Russia, raising ethical questions about their practices. These developments illustrate the ongoing challenges in both the stock market and the world of cryptocurrency.
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Market Euphoria
- U.S. stocks had their best day in over two and a half years after lower-than-expected inflation data.
- Investors are highly sensitive to economic data, which influences Federal Reserve decisions on interest rates.
SBF's Apology
- FTX founder Sam Bankman-Fried apologized on Twitter for the exchange's collapse and inability to meet customer withdrawals.
- He admitted to misunderstanding FTX's financial position and is trying to raise funds.
Contagion Fear
- Investors withdrew $700 million from Tether due to fear stemming from FTX’s collapse.
- Tether, a key asset linking crypto to traditional currency, experienced a price dip, showing signs of strain.