The FTX disaster is still getting top billing in the financial press these days. The crypto exchange — which was backed by major venture capital (VC) investors — collapsed after news broke that founder Sam Bankman-Fried had been secretly moving customer money to his trading firm and blowing it on bad investments. Now thousands of FTX customers are terrified they won’t get their money back.
The bankrupt crypto exchange and its now disgraced founder are invoking memories of past financial scandals. As our own Vin Narayanan put it, the FTX collapse is one part Enron, one part Lehman Brothers and one part Theranos.
In this episode of Angel Insider, Vin and Allison Brickell discuss the lessons investors can learn from FTX and other financial disasters. Topics include VC negligence, due diligence questions and more.
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