The Challenge of Running a Successful Financial Firm

Running a successful financial firm can be easy at the beginning but challenging in the long run. FTX faced issues when lenders called in their loans during a crypto price decline, leading to the use of customer money. The company's downfall was accelerated by leaked information about their assets being tied to the in-house cryptocurrency token. This caused a 'run on the bank' situation where investors sought to withdraw their money, revealing a significant liquidity shortfall.