I’ve been talking about blockchain and cryptocurrency for six years, really focusing on the blockchain chain technology component, including my course: Blockchain: A transformative technology.
Blockchain is the underlying technology that facilitates cryptocurrency and crypto creation, mining, distribution, and buying and selling.
FTX is a cryptocurrency exchange facilitating crypto sell and buy. However, the cryptocurrency exchange market is unregulated. It is unlike the stock exchanges that have a regulatory body on top of it.
A huge amount of trust is needed for the company that is doing the crypto transactions.
Many high-profile investors are intertwined in this story, but let’s not look at what the investors should have done but what the organization should have done.
What went wrong with FTX was governance issues, who was overseeing FTX, the company, Sam Bankman Fried actions and the actions of the Board of directors, and the audit committee.