Why the FTX collapse has plunged the crypto world into upheaval – The Washington Post
The cryptocurrency world plunged into chaos this week with the stunning fall of FTX, a crypto exchange once valued at as much as $32 billion.
Industry leader Binance backed out of a planned buyout on Wednesday after disclosing that a review of FTX’s books had unearthed “mishandled customer funds” and amid news reports that U.S. regulatory agencies were circling the smaller exchange.
The sudden collapse is being referred to as the crypto industry’s “Lehman Brothers” moment — a reference to the once-mighty investment bank whose implosion helped spark the 2008 financial crisis. One expert even described it as nearly “apocalyptic” for the sector.
Here’s what you need to know about the failed deal, the key players and what it means for consumers: