FTX Collapse: Greed and Hubris Led to Digital Exchange’s Demise

• The new report suggests that the downfall of FTX was due to hubris and greed from those involved.
• It is believed that customer funds were illegally used to purchase luxury real estate in the Bahamas by former head executive Sam Bankman-Fried.
• A lack of competence from those at FTX, along with a lack of cybersecurity measures and oversight, ultimately led to its collapse.

FTX Collapse: What Really Happened?

A new report has emerged which delves into the factors leading to the destruction and collapse of digital currency exchange FTX. According to the report, it was primarily „hubris and greed“ that caused its demise.

Hubris & Greed

The term „hubris“ is defined as arrogance before the gods – implying that all those involved with FTX had an inflated sense of their own abilities. Additionally, reports suggest that many people involved with FTX sought after money they didn’t need at others‘ expense; former head executive Sam Bankman-Fried allegedly purchased luxury real estate in the Bahamas for himself using customer funds.

Lack Of Competence & Oversight

The debtors‘ report also points out a remarkable lack of competence among those at FTX. Key executive roles went unfilled, while no cybersecurity department was put in place to protect customers should something go wrong (which it did). Furthermore, there were no proper frameworks or oversight when it came to business dealings – something which likely contributed significantly to its quick collapse.

FTX’s Rise & Fall

Founded only four years ago in 2019, FTX quickly became one of the largest crypto exchanges in the world by 2021 – only for it all come crashing down soon after. This dramatic fall from grace will likely remain one of the most embarrassing occurrences within the digital currency space for some time yet.

It is clear that a combination of hubris, greed, incompetence and a lack of security measures were all contributing factors behind the fall of digital currency exchange FTX. Despite rising through ranks quickly when first founded in 2019, these issues ultimately led to its downfall – one which will be remembered for years as a cautionary tale about what can happen when such issues are not addressed adequately enough.