• The new report suggests that the collapse of FTX digital currency exchange was caused by hubris and greed.
• It is said that SBF utilized customer funds to purchase luxury real estate in the Bahamas, where the company was stationed.
• Additionally, there was no controlled framework or oversight of business dealings which contributed to its downfall.
A new report has emerged talking about what it was that really led to the destruction and collapse of the FTX digital currency exchange. Everyone thought the company was on top of the world and incapable of collapsing, but they were wrong… The report suggests that it was hubris and greed—and lack of competence—that ultimately led to its downfall.
Hubris & Greed
The report states that hubris is described as “arrogance before the gods” (according to games like Far Cry 5). Mere mortals like us should take that like everyone at FTX had tremendous egos; they all thought they were too smart and too capable and thus didn’t take necessary precautions. In terms of greed, it’s clear that many people involved with the company sought to get their hands on money they didn’t necessarily need – money that belonged to other people. This is among the many charges that former head executive Sam Bankman-Fried is now facing; he is accused of using customer funds to purchase luxury real estate in the Bahamas, where the company was stationed.
Lack Of Competence
The debtors’ report also suggests an incredible lack of competence underlined the many mishaps at FTX: there were no key executive roles created; no cybersecurity department; no controlled framework or oversight for business dealings; and employees joked about how quickly millions could be lost track off without any consequence.
History Of Bad Behavior
FTX had grown rapidly since its founding in 2019, becoming one of world’s third largest crypto exchanges by summer 2021. However, due to its lack of foresight when it came to protecting customers‘ funds and ensuring proper business practices were followed, it ended up falling just as fast as it rose – a reminder not only for those working within this field but any industry looking for success as well: always have checks in place!
The fall of FTX will likely go down as one of most embarrassing occurrences within digital currency space; however hopefully lessons can be learned from its mistakes so another such tragedy can be avoided in future.