“We thought we were going to build the best product on the market,” former cryptocurrency prince Sam Bankman-Fried, who went from bridging the traditional financial world to the digital coin space almost overnight to accused of embezzling billions of dollars, said during six hours of cross-examination in Manhattan federal court. in the case.
The biggest problem with cryptocurrencies is that, unlike currency issued by central banks, whose value is guaranteed by a country’s name of honor or, as it used to be, real wealth in gold and other assets, they themselves have no value. They are only worth what someone is willing to pay for them, and many businesses in this industry were actually built on the assumption that the cash flow would not stop. Thus, when the economic situation around the world worsened and investors began to think more carefully about where to put their money, the cryptocurrency industry saw several bankruptcies and a complete collapse of the value of the coins.
At the end of last year, it seemed that despite all the troubles, the cryptocurrency exchange FTX and its subsidiaries were unshakable. However, when news broke in November 2022 that the company was having liquidity problems and investors rushed to withdraw their money held in FTX, problems were revealed that led to the exchange’s bankruptcy and later to the indictment of its executives, led by Sam Bankman-Fried.
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2023-11-01 08:41:50
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