FTX offers a master class in crypto's flaws

17 Nov 2022 · 3 min read

Editor's Note

"The message for investors and traditional finance remains simple: Stay away." Bloomberg's opinion editors offer insight into what the unfolding crypto crisis tells them.

In one sense, investors and regulators should be grateful to Sam Bankman-Fried, the erstwhile head of the FTX cryptocurrency exchange. The spectacular flameout of his virtual empire has evolved from a cautionary tale into a master class on everything that's wrong with crypto markets.

As customers and creditors sort through what remains of the failed exchange's holdings, and as the repercussions spread throughout the crypto realm, here are four lessons that stand out:

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