's price plummeting 39% over the past year. FTX boss Sam Bankman-Fried allegedly responded by using customers' money to prop up his trading firm Alameda Research – and now he's in the US awaiting a criminal trial on eight counts including fraud.
"Although this has been charged as fraud, you can argue that a Fed hiking cycle exposed it, as it reversed the enthusiasm for crypto, which ultimately exposed the corporate wrongdoings at the company," Deutsche Bank managing director Jim Reid said in a research note. Meanwhile, SVB collapsed last week – and rising interest rates were a huge factor in its demise. SVB lost $1.8 billion on its bond portfolio as fixed income prices plummeted, while its deposit base dried up because of tech startups' growing reluctance to list on the stock market.
Possibly SVB, but the article uses non-sequitur logic to justify that FTX’s fraud was only exposed because of fed rate hikes.
Victims of the Fed? Victims of their own recklessness. The whole economy is a house of cards built on free credit. Fed tries to start to normalize rates and those out on a credit limb suddenly die? The Fed has been complicit it propping up the economy for a decade.
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Silicon Valley Bank’s parent company files for bankruptcy protectionSVB Securities and SVB Capital were not included in the filing by SVB Financial Group.
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