The Big Picture

From hero to zero: is fall of FTX crypto’s own Lehman moment?

Sam Bankman-Fried, the brilliant young founder of FTX, was supposed to be the person who made crypto currencies respectable – but as the firm’s value plummeted from $32 billion to virtually nothing, investors were left wondering what went wrong

Every fast-growing company, or the guy who founded it, does something every so often in the pursuit of world domination that should plant a little red flag in the minds of investors. It might be the moment the founder/chief executive gives a top corporate position to a supermodel. Or the moment he buys the naming rights to a sports stadium. Or when he muses aloud about buying Goldman Sachs.

Sam Bankman-Fried, who founded the cryptocurrency ...