On Nov. 11 2022, cryptocurrency exchange FTX filed for bankruptcy after users withdrew around $6 billion in funds from the exchange and Binance, a competing offshore crypto exchange, backed out of a deal to buy the company.
He publicly raised concerns about FTX's financial health about a month before the company's multibillion-dollar implosion.
At that time, the crypto craze had soared to a fever pitch and the entire crypto market was valued around $3 trillion.
However, despite the hype surrounding FTX, Bhaidani says that the numbers just weren't adding up at the time.
Since exchanges typically earn revenue by charging traders transactions fees, this would mean that revenue was down for the company as well, he says.
Persons:
FTX, Sam Bankman, Ishan Bhaidani, wasn't, Bhaidani
Organizations:
CNBC, Miami Heat
Locations:
Manhattan, FTX