FTX Bankruptcy Impacts Swiss Crypto Valley

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Former crypto prodigy Sam Bankman-Fried is broke.

Once upon a time there was a multi-billionaire who lost his fortune overnight: Sam Bankman-Fried (30) is broke. Until recently, the American crypto-entrepreneur was still considered a child prodigy with his curly hair and short pants. It is now clear that “SBM” was juggling billions – while speculating. Last week, he filed for bankruptcy for his cryptocurrency trading system FTX. Up to 50 billion dollars disappeared.

The bankruptcy of FTX will drag other companies into the abyss. “There is a threat of a domino effect, I expect hundreds of corporate bankruptcies,” says Swiss crypto-entrepreneur Olga Feldmeierová (44). There is already talk in the industry of a “Lehman moment”, based on the 2008 bankruptcy of US investment bank Lehman Brothers in the wake of a financial crisis that sent other financial institutions stumbling.

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