Crypto Crisis: The FTX bust conforms to an old pattern – economics

Clients, advertisers, investors – the founder of the crypto trading platform fooled them all. And once again it shows: people trust imposters.

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Jan Diesteldorf

Sam Bankman-Fried is out, his empire has crumbled within days, the insolvency administrator has taken over. As if the bankruptcy of the crypto trading platform FTX wasn’t spectacular enough, John J. Ray III went one better at the end of the week. The 63-year-old has many major bankruptcies in the United States behind him, he wound up the energy company Enron, which went under in 2001 in an unprecedented accounting scandal. But what he sees now, Ray writes in his first statement, is unique: “Never in my professional career have I seen such a complete failure of corporate controls and such a complete lack of trustworthy financial information.”

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