FTX Fallout Continues – Brace for Impact

A Flock of Black Swans

Unless you have been off the grid for the past week, you likely are familiar with the shockingly abrupt implosion of FTX. For those just entering the fold, to make a long story short – Sam Bankman Fried (SBF) allegedly stole an estimated $4 billion of customer deposits for Alameda, the fund in which he has a significant ownership stake. Alameda subsequently lost these funds, and now due to declining prices and a run on FTX, the liquidity shortfall has expanded to an estimated $10-50 billion.