Is FTX a 'Lehman Brothers moment' for crypto?

FTX, a crypto exchange, went from being worth $32 billion to filing for bankruptcy in what many are calling the “Lehman Brothers Moment” for crypto. Sam Bankman-Fried, the founder of FTX and Alameda Research, became a prominent figure in the crypto space while becoming one of the wealthiest people by the age of 30.

Did you know FTX owns a lot of FTT tokens?

But the customers didn't know those tens of millions of tokens weren't widely distributed, which is key in having a market determine the price or value of any currency. In fact, a lot of FTT belonged to FTX and its affiliated companies, and Bankman-Fried's hedge fund, Alameda Research.

Was FTX teetering?

NEW YORK – When his cryptocurrency exchange started teetering in early November, Mr Sam Bankman-Fried went on Twitter to calm everyone down. FTX wasfine, he insisted. Nothing to worry about.

Did Bankman-fried borrow money to fund FTX?

Ellison was the head of Alameda Research — the trading firm through which Bankman-Fried moved crypto tokens in tandem with running FTX. Amidst the revelation that FTX borrowed money from customer accounts to fund bets via Alameda, Ellison has become a subject of online speculation. Ellison's virtual presence, however, is dwindling by the day.