HomeMarketsCurrencies & CryptoFTX Downfall: How It Fooled Crypto Investors
FTX Downfall: How It Fooled Crypto Investors

"There is behavior by an exchange to use client assets to cover a loan with risky digital investments. Because FTX put itself in a vulnerable position, it opened up for financial warfare where a rival exchange could spot a market dump and crash the collateral value. FTX had credibility in the industry, but cryptocurrency and blockchain technology as a whole still needs oversight," says Robert Viglione. He also states that FTX always portrayed itself as very liquid.

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