Lack of Transparency Leads to Downfall

The cryptocurrency exchange FTX, led by Sam Bankman Fried, faced downfall as it was discovered that FTX loaned all customer money to a sister company, Alameda Research, headed by Fried. The sister company's value was based on tokens issued by Fried, lacking substantial assets. This lack of transparency eroded customer confidence, leading to fund withdrawals and eventual bankruptcy with $8 billion missing. Former colleagues testified against Fried in court, admitting to fraud and pointing to his direction in the actions.