[pjc50]

1) FTX had a token they issued, but were booking this as an "asset". This is like issuing yourself an "IOU 1 billion" note and claiming you're a billionaire.

2) To obfuscate this slightly, they lent "$10bn" of tokens to Alameda Research, which was a "hedge fund" run by his girlfriend on the exchange

3) Alameda made huge trading losses, as often happens to novice traders. A Nick Leeson event.

4) Changpeng Zhao of Binance noticed there was a problem: https://fortune.com/2022/11/07/crypto-billionaires-cz-binanc...

5) This triggered a "bank run" on FTX

6) FTX are now insolvent: https://twitter.com/SBF_FTX/status/1591089317300293636

7) That was the last we heard from SBF. There are now reports that the exchange has been "hacked" and coins stolen. It is not yet clear by whom, or where SBF is.