Class action lawsuit, bankruptcy, and more

Just months ago, FTX appeared to be a major success story in the cryptocurrency world.

Not familiar with the name or the industry? Then let’s start at the beginning.

What does FTX stand for?

FTX is short for “Futures Exchange.”

What is a cryptocurrency?

It is money traded in a digital form. It is supposed to have “safeties” on it that keep it from being traded more than once, track it and secure it against duplication or hacking.

FTX is one of the biggest exchanges where trading those digital assets took place, and was touted by regulators and market watchers as one of the most transparent crypto operations.

What sparked the scandal?

Initially, the market believed the FTX implosion was the result of an old-fashioned bank run on the exchange’s reserves.

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