Cryptocurrency deals have made Sam Bankman-Fried a billionaire at the age of 30. Its cryptocurrency exchange was seen as a safe haven in a volatile industry. until it crashed.
“NZZ Akzent”: FTX: The Crypto King Shattered
David Vogel, Antonia Moser
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He wanted to earn a lot of money – to do good. As a student, Sam Bankman-Fried committed himself to effective altruism. Followers of this philosophy want to earn as much money as possible to use for charitable purposes. More can be achieved through this than just doing volunteer work.
In 2017, Sam Bankman-Fried sensed the big business in the cryptocurrency industry. He became a millionaire very quickly and founded a cryptocurrency exchange that brought him billions of dollars. It seemed to have weathered the first storms of the cryptocurrency industry unscathed. His stock exchange, FTX, was considered a safe haven. Even Sam Bankman-Fried stepped in when other companies were struggling.
And then the collapse: at the end of October, rumors circulated about FTX’s dirty work. Customers started withdrawing their money. But FTX did not have enough liquidity to pay customers. The exchange had to file for bankruptcy.
In the latest episode of “NZZ Akzent,” business editor Nelly Koch tells the story of Sam Bankman-Fried and the impact of the crash on the cryptocurrency industry. We learned from the financial crisis that banks need to be regulated. It is now clear that this will also be urgently needed for cryptocurrencies.”
All episodes of “NZZ Akzent” can be found in This overview.