Customers trusted a polished exchange. Then billions disappeared.
FTX looked powerful, polished, and untouchable. Behind that image, customer deposits were misused. The collapse trapped users, destroyed confidence, and ended with Sam Bankman-Fried receiving a 25-year prison sentence for fraud.
The lesson
Brand recognition is not proof of solvency. Counterparty risk can erase a winning portfolio before price ever reaches the stop-loss.
Good traders question custody, concentration, and withdrawal access, not only chart direction.
#CryptoStory #FTX #RiskManagement
FTX looked powerful, polished, and untouchable. Behind that image, customer deposits were misused. The collapse trapped users, destroyed confidence, and ended with Sam Bankman-Fried receiving a 25-year prison sentence for fraud.
The lesson
Brand recognition is not proof of solvency. Counterparty risk can erase a winning portfolio before price ever reaches the stop-loss.
Good traders question custody, concentration, and withdrawal access, not only chart direction.
#CryptoStory #FTX #RiskManagement