Part 3/10:
The fallout has been devastating. Major investors have already begun to write down billions of dollars in losses. Venture capitalists, including firms such as Sequoia Capital, have reported significant losses, with a total of approximately $1.8 billion invested into FTX now at risk or lost entirely.
Institutional investors, who Vetted FTX's operations, are questioning their due diligence processes—suspicions that a lack of independent oversight and governance contributed to the disaster. Retail investors, many of whom believed in FTX’s security, are also feeling betrayed. Some have lost their entire crypto savings, exemplified by one investor who had a five-figure balance on the platform, now vanished.