FTX’s Collapse Validates Gary Gensler’s Crypto Skepticism

If you’re looking to apportion blame for the collapse of FTX, there are quite a few worthy candidates. Start with founder Sam Bankman-Fried, who under the banner of “effective altruism”—a 4chan thread of a moral philosophy—spent lavishly to lure investors onto his crypto trading platform and then, either through greed or incompetence, allowed customer funds to be used, and lost, by a hedge fund he also owned, Alameda Research. (So far, Bankman-Fried has seemed to argue that this was an honest mistake stemming from a failure to keep track of customer funds. In other words: an $8 billion oopsie.) ...