November 18

Crypt-oh no, part 2

Last week, I wrote a bit about the absolute meltdown that happened at the crypto exchange, FTX. It’s probably going to soon be the subject of a Netflix limited series (and is sure to be in its Top 10 for a while once it comes out). But if you haven’t been paying attention, you can check out my first write-up from last week. So much more has happened since then, though:

First, over the weekend, FTX “was hacked” and all of the remaining funds that were locked up in the exchange were “stolen.” There were many people who thought it was an inside job. But today, it actually became clear that it wasn’t a hacker… or FTX insiders. It was actually the Bahamian government. They ordered FTX’s executives to transfer the funds over to them for “safekeeping.” Whether or not the funds will actually be kept safely and returned to its rightful owners remains to be seen.

Also, major celebrities like Tom Brady, Steph Curry, Larry David, and others got swept into the chaos by being named in a class action lawsuit against FTX. From CoinTelegraph, “The lawsuit alleged that FTX attempted to destroy incriminating emails, texts and evidence of its criminal activities. However, the recovered evidence suggests that “FTX’s fraudulent scheme was designed to take advantage of unsophisticated investors from across the country, who utilize mobile apps to make their investments.”

What happens next? Who knows. But grab your popcorn, because the story isn’t done yet. It seems like there will be more and more revealed in the weeks to come.

Mike Belsito

About the author

Mike Belsito is a startup product and business developer who loves creating something from nothing. Mike is the Co-Founder of Product Collective which organizes INDUSTRY, one of the largest product management summits anywhere in the world. For his leadership at Product Collective, Mike was named one of the Top 40 influencers in the field of Product Management. Mike also serves as a Faculty member of Case Western Reserve University in the department of Design and Innovation, and is Co-Host of one of the top startup podcasts online, Rocketship.FM. Prior to Product Collective, Mike spent the past 12 years in startup companies as an early employee, Co-Founder, and Executive. Mike's businesses and products have been featured in national media outlets such as the New York Times, The Atlantic, CNN, NPR, and elsewhere. Mike is also the Author of Startup Seed Funding for the Rest of us, one of the top startup books on Amazon.


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