Crypto Crisis: Elon Musk Calls FTX's Bankman-Fried "Bullsh-t"

Elon Musk, the CEO of Tesla, claims that the owner of FTX approached him about investing for Twitter.

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One of the biggest cryptocurrency exchanges, FTX, collapsed on November 8

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And was desperately looking to its fierce rival Binance for assistance in order to try to fulfill its obligations.

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After taking a deeper look at FTX's books and developing suspicions about potentially illegal operations, Binance eventually gave up trying to assist.

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In the summer of 2022, FTX bailed out other crypto institutions with the money it had borrowed.

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On its financial sheet, FTX was also utilizing the crypto currency it was issuing, FTT, as collateral.

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Due to the concentration risk and the volatility of FTT, this exposure was quite large.

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On November 6, customers withdrew a record $5 billion in withdrawals as they rushed to sell their crypto assets.

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As a result, FTX was unable to fulfill the sell orders of its clients since it lacked the crypto assets that were now being lent out or sold.

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CEO Elon Musk stated that it was evident that Bankman-Fried was more about showing off and less about substance

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when the blame game got underway and regulators started investigating.

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