Insolvent Crypto Exchanges

a big and soon to be much bigger problem, according to Sam Bankman-Fried, founder of FTX. About a two minute read.

Comment: regular readers of Fintech Flash News won’t be surprised, many exchanges had financial problems before pandemic. But the OTT bull market that emerged during pandemic obscured most, if not all, of the financial problems. Look at it this way: I can deposit 1 Bitcoin, current market value about $20K on some of these exchanges, but am allowed to borrow $more than $20K — something is wrong. And yet this is the norm at many crypto exchanges.