FTX international had a major meltdown the past few days.
Simply put 99.99% of depositors funds (approximately $8Billion) were placed into a single illiquid token of FTX, FTT. Unethical and irresponsible leadership, took a loan on this full amount from a particular bank. Very funny how leadership spoke in congress recently about the financial collapse of 2008 indicating illiquid financial products bundled together were loaned against, having no inherent value. Sounds pretty similar!
CZ (owner of the world’s largest crypto exchange), made an offer to purchase the international arm of FTX. In the process of vetting FTX, they discovered the aforementioned illiquid loan taken on the deposits of FTX.
As this became public, FTX Int’l became bankrupt. Leadership, Sam Bankman Fried, lost 94% of his own net worth.
This is the largest implosion of a centralized exchange to date.
The age old adage being, not your keys not your coin! In other words, do not ask your Government to keep you safe, they do not care about you, do not ask the centralized exchange to keep you safe, they do not care about you, do not ask for insurance to bail you out 5 years later, you don’t have the time.
Only do what you can, to control and keep your coins in self-custody.
Bitcoin and other blockchains are here to stay, centralized bad actors are not.
