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

Created By Fintech Team

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

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

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

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

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

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

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

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

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. 

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

when the blame game got underway and regulators started investigating.