FTX

I am not sure what Bitcoin is but it can be purchased through a company called FTX, a company which this week filed for bankruptcy. FTX was a company where you could buy and sell crypto currency like Bitcon. The news said that $32 billion dollars just disappeared overnight. What they mean is that those who put the money in no longer have that money but somebody has it. It appears that the money came in the front door and out the back to another company. The man who founded the company, Sam Bankman Fried earlier founded a company called Alameda Research a company that evaluated crypto and gave recommendations as to what kind to purchase. Later he founded FTX a company to buy and sell crypto. Several experienced invested suggested that this was a conflict of interest since Alameda could recommend buying from FTX. Before FTX was founded the largest crypto trader was Binance and when FTX started Binance was a major investor. Later when FTX was in trouble Binance put the final nail in the coffin buy selling off all of its investment in FTX. It was then learned that FTX had been using its money to fund risky investments by Alameda. They would use customer money as collateral for loans and then invest that money. When these investments went south the company began to unwind. It was like all Ponzi schemes in that those who went in first won and those who came in later lost. In other words that $32 billion didn't disappear it just changed hands.