Class action lawsuits, bankruptcy and more

Just a few months ago, FTX seemed to be a huge success story in the cryptocurrency world.

Don’t know the name or the sector? So let’s start from the beginning.

What does FX mean?

FTX is short for “Futures Exchange”.

What is a Cryptocurrency?

It is money exchanged in digital form. It should have “safeties” on it that prevent it from being traded more than once, track it, and protect it from duplication or hacking.

FTX is one of the largest exchanges where the trading of such digital assets has taken place and has been touted by regulators and market watchers as one of the most transparent crypto operations.

What sparked the scandal?

Initially, the market believed that the implosion of FTX was the result of an old bank run on the exchange’s reserves.

Leave a Reply