• A new report has emerged that details the fall of FTX digital currency exchange – hubris and greed were the main causes.
• Former head executive Sam Bankman-Fried is facing charges for using customer funds to purchase luxury real estate in the Bahamas.
• The company also lacked an executive team, cybersecurity department and a controlled framework or oversight of business dealings – resulting in the quick collapse of a once top crypto exchange.
What Really Led to the Collapse of FTX?
A new report has revealed that it was hubris and greed which led to the destruction and collapse of the FTX digital currency exchange. Hubris is described as “arrogance before the gods” (according to games like Far Cry 5) and it is said that everyone at FTX had tremendous egos. Additionally, many people involved with the company sought to get their hands on money they didn’t necessarily need – leading to former head executive Sam Bankman-Fried facing charges for using customer funds to purchase luxury real estate in the Bahamas.
Lack of Competence
Furthermore, there was an incredible lack of competence underlined at FTX which resulted in many mishaps occurring behind its walls. The company failed to create key executive roles, had no cybersecurity department, lied to third parties about its funds and business dealings, and had no controlled framework or oversight of business dealings. As a result, this helped contribute to its swift downfall from being one of top crypto exchanges around just four years prior in 2019.
Charges Against SBF
The debtors’ report suggests that much corruption was taking place within FTX when it comes down to Sam Bankman-Fried (SBF). It is said that SBF utilized customer funds illegally by purchasing luxury real estate in order for himself rather than keeping them safe for customers who trusted him with their money.
Lack of Security Measures
In addition, there were also some serious issues concerning security measures needed but not met at FTX such as having no executives or cybersecurity departments present as well as no controlled frameworks or oversights into how business transactions were conducted – all factors which likely contributed heavily towards why such massive amounts of money could be lost so quickly within such short periods by those running this particular exchange platform.
The fall of FTX is likely going down as one of the most embarrassing occurrences within digital currency space due mainly due hubris & greed coupled with a lack competence resulting from not having necessary security measures in place like executives & cyber departments plus controlled frameworks/oversights into how business transactions were conducted – all things which could have potentially prevented such a disaster from ever happening again elsewhere..