FTX’s collapse has exposed the company and founder Sam Bankman-Fried to potential U.S. criminal liability, attorneys say
The crypto exchange’s collapse likely exposed the company and its founder to potential criminal liability
Cryptocurrency exchange FTX was seen as a survivor in a struggling industry, but over the course of six days the exchange collapsed due to a sudden liquidity crunch. WSJ explains the factors that drove FTX’s growth and what led to its downfall. Illustration: Alexandra LarkinFTX’s offshore status and its willingness to keep American traders off its Bahamas-based exchange in large part shielded the company from strict U.S. laws that govern trading and how investments can be sold to the public.
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