FTX’s Collapse Was a Crime, Not an Accident

FTX’s Collapse Was a Crime, Not an Accident
Bitcoin_Maximalist
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FTX, like other crypto platforms and some conventional equity or commodity services, offered users “margin,” or loans, that they could use to make trades. However, these loans are generally collateralized – that is, users put up other funds or assets to back their borrowing. If the value of that collateral drops, or a margin trade loses enough money, the user’s collateral will be sold and the exchange will use that money to pay off the initial loan.