The FTX Collapse Says A Lot About Silicon Valley Corporate Governance
Brand name investors threw money at Sam Bankman-Fried without even looking at the balance sheet
The FTX collapse is the apotheosis of everything wrong with the cryptocurrency industry and Silicon Valley’s lax attitude toward corporate governance.
In response to FTX’s failure, Binance announced an ‘industry recovery fund’. But, in the wake of Sam Bankman-Fried’s fall from grace, we’ve learned the company was run with little to no actual institutional investor oversight, while Bankman-Fried repeatedly admitted to fraudulent behavior in the weeks leading up to the crisis. In the days following FTX's bankruptcy, Bankman-Fried took to Twitter to post a barrage of chaotic, almost conspiratorial tweets attempting to explain what happened to the company.
FTX’s leadership is now under investigation and possibly detained, in the Bahamas.
