Roben Farzad:

Sure.

It should have been simple stuff. If you have an exchange, it’s capturing a spread between the bid and ask. And it’s kind of a market-maker and kind of a depository for people to put their crypto assets in, and is a toll keeper, in effect.

But when the market got wind, I think, at the beginning of November the fact that other things were in play, namely that it was siphoning, funneling money to a related hedge fund, Alameda Capital, Alameda Research, and that its underlying currency, its own token, was being sold left and right, that just left the doors open for investors to demand their money back from FTX.

And that was, as you called it, a run on the bank. It’s so difficult to explain this in normal terms, because it is, by its nature, decentralized. There isn’t a Central Bank out there. There isn’t Federal Reserve stress tests or the Treasury Department breathing down their neck. They’re based in the Bahamas.

So we’re untangling this all in real time. And it seems like, every day, another new revelation drops about what was going on behind the scenes.

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