The FTX Collapse: Lessons from a $32 Billion Cryptocurrency Catastrophe

The FTX Collapse: Lessons from a $32 Billion Cryptocurrency Catastrophe�

1. Presentation on: The FTX Collapse: Lessons from a $32 Billion Cryptocurrency Catastrophe Course: Business Law-I Code: LLBH 207 Prepared by: Prepared for Tanusree Devi Asha Lecturer Department of Law, Green University of Bangladesh Syed Md Alamgir Hussain ID: 223011029 Department of Law, Green University of Bangladesh

2. What was FTX? Founded in 2019 by Sam Bankman-Fried (SBF). A cryptocurrency exchange valued at $32 billion at its peak. Known for quick growth and celebrity endorsements (e.g., Tom Brady, Steph Curry).

3. November 2022: Reports revealed financial mismanagement and misuse of customer funds. FTX secretly lent billions to Alameda Research, an affiliated trading firm. Customers rushed to withdraw funds, leading to insolvency. The Collapse

4. Legal Violations by FTX Fraudulent Practices : Misrepresentation of financial stability to investors. Secret transfer of customer funds to Alameda Research. Securities Law Violations : Offering unregistered securities in the form of cryptocurrency-related products. Money Laundering : Alleged use of funds to cover debts and pay personal expenses. Breach of Fiduciary Duty : Misusing customer assets without consent.

5. Lessons Learned and Future Implications Importance of regulation and transparency in crypto markets. Need for investor awareness and caution in high-risk markets. Future of crypto: Stricter rules but potential for long-term growth .

6. Thank you everyone! If you have any question, you may ask ? Contact: [email protected]