The Rise and Fall of Bankman-Fried's FTX

FTX, once valued at $32 billion, is now under investigation by US authorities for mishandling customer funds. The collapse of its financial ties with Alameda and the plummeting value of its FTT token have led to a liquidity crisis. Binance initially considered acquiring FTX but backed out due to the financial instability. Major investors like Sequoia have written down their investments to zero, and FTX is working to raise liquidity to repay clients and investors.

What was one of FTX's strategies to support the crypto industry?

• Investing in new blockchain technologies

• Bailing out struggling crypto firms

• Launching a new cryptocurrency

• Partnering with traditional banks

Which US authorities are investigating FTX?

• FBI and Homeland Security

• SEC, CFTC, and Department of Justice

• Federal Reserve and IRS

• CIA and NSA

What was the major concern about the financial ties between FTX and Alameda?

• Alameda's ownership of FTX

• FTT token's significant presence on Alameda's balance sheet

• Alameda's investment in other crypto exchanges

• FTX's acquisition of Alameda

What action did the CEO of Binance take regarding FTT tokens?

• He burned FTT tokens

• He transferred FTT tokens to FTX

• He started selling his FTT tokens

• He bought more FTT tokens

What was the financial impact on Sequoia's investment in FTX?

• It remained stable

• It increased by 50%

• It was written down to zero

• It doubled in value