Part 2/10:
FTX, a cryptocurrency exchange founded by Sam Bankman-Fried, was once considered among the most trustworthy platforms available, bolstered by high-profile endorsement campaigns and backing from prestigious venture capital firms like Sequoia Capital and Tomasic from Singapore. The exchange attracted millions of users by claiming to offer a safe and reliable environment to trade digital assets.
However, FTX’s sudden collapse has been described as one of the top 10 corporate scandals of all time, comparable to the fall of Lehman Brothers in traditional finance. It is being called "crypto's Lehman moment" because of the scale and speed with which trust eroded, revealing systemic vulnerabilities within the industry.