• A new report has emerged talking about what really led to the collapse of the FTX digital currency exchange.
• The report claims that hubris and greed were at the core of the fall, with executives utilizing customer funds for luxury real estate purchases and a lack of key executive roles and cybersecurity measures.
• The company’s quick rise to become the third largest crypto exchange in the world was followed by an even quicker fall, proving it had grown too quickly without necessary precautions or oversight.

What Led To The Fall Of FTX?

A new report has emerged talking about what it was that really led to the destruction and collapse of the FTX digital currency exchange. Per the words of the report, it was merely “hubris and greed” that caused FTX’s downfall. Hubris is described as “arrogance before the gods” (according to games like Far Cry 5), suggesting everyone at FTX had tremendous egos and thought they were too capable without taking necessary precautions. In terms of greed, executives are believed to have utilized customer funds for luxury real estate purchases in Bahamas, where FTX was stationed. In addition, incompetence underlined many mishaps within FTX due to a lack of key executive roles and cybersecurity measures being taken. Lastly, other reports suggest that third parties were lied to about business dealings and millions were lost track of at a time with no framework or oversight in place.

The Quick Rise And Fall Of FTX

FTX had quickly risen through the ranks after its founding in 2019 to become one of the world’s largest crypto exchanges by summer 2021. However, this quick rise was followed by an even quicker fall due to lack of preparation or oversight on behalf of those running it – proving how quickly it grew without proper precautionary measures being taken beforehand.

Charges Facing Executives Involved With FTX

Former head executive Sam Bankman-Fried is now facing charges over allegations regarding his use of customer funds for luxury real estate purchases in Bahamas as previously mentioned. Other charges may follow suit if investigations continue into other aspects surrounding this issue including mismanagement and fraudulence amongst those involved with running this exchange platform prior to its collapse.

The Impact Of This Collapse On Cryptocurrency

The fall will likely be remembered as one of the most embarrassing occurrences within cryptocurrency space due to how quickly things spiraled out from when it first became one of biggest exchanges around. This event will likely serve as a reminder moving forward for investors not only on cryptocurrency markets but any form investing or trading that safety protocols must be established ahead of time in order ensure security against potential collapses like this one again in future marketplaces or investments opportunities presented online or otherwise..

Conclusion

To sum up, hubris and greed combined with incompetence from those running FTX along with criminal activity from certain executives all played a role in bringing down this once powerful digital currency exchange platform which had reached its peak just two years prior before ultimately collapsing due to these factors mentioned above . Hopefully lessons can be learned from this incident so similar catastrophes can be avoided moving forward whether dealing with cryptocurrency markets or any other type investment opportunity presented online or offline .