The demise of the FTX empire which transpired over the course of ten consecutive days in November of 2022, came as a tsunami for the broader crypto market. On November 11, 2022, FTX submitted a petition for protection under Chapter 11 of the United States Bankruptcy Code, while Bankman-Fried the founder resigned. According to the documents filed by FTX in its bankruptcy case, the company, which was valued at $32 billion, has $8 billion in liabilities that it cannot pay to as many as 1 million creditors.
The Positive Side Of FTX Faisco
The shocking failure of FTX can be explained by the age-old tale of managerial arrogance, excessive risk-taking, and inadequate regulation and risk management. However, the disaster has also provided us with additional material for reflection on the significance of risk management culture and leadership.
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