What killed FTX? Lessons in liquidity

Bloomberg ·

Bloomberg

The liquidity crisis that hobbled Sam Bankman-Fried's empire was at its heart a crisis of confidence. A breakdown of trust that wasn't unique to him or the crypto world alone. Long-Term Capital Management in 1998, Lehman Brothers in 2008. Remember them? They each in one way or another fell victim to vanishing liquidity spurred by a breakdown of trust from their counterparties and clients.