"The entire $16 billion fortune of FTX co-founder Sam Bankman-Fried has now been wiped out, one of history’s greatest-ever destructions of wealth."
@juddlegum hi Judd! Since I don’t understand any of this, can you just let me know what effect this would have on the real economy with real money? Serious question. Like with the real economy ever fall because of crypto mismanagement or losses?
@kathygriffin @juddlegum At the moment, it's unlikely a crypto crash would induce a larger market crash.
Last month the Financial Stability Oversight Council urged more oversight of the area for this very reason, but noted "the level of involvement by the banking system in crypto-asset activities
remains relatively low" and "current interconnections are unlikely to cause banks
to bear losses in response to a shock in the crypto-asset ecosystem."
https://home.treasury.gov/system/files/261/FSOC-Digital-Assets-Report-2022.pdf#page=17
@maxkennerly In other words, it's just the rubes who bought into it who will pay.
