Good news: the downstream impacts should be nominal and contained within more aggressive firms dealing in crypto and that don’t do due diligence.

Fraud, fraud is what happened. They misappropriated customer funds for their own trading via Alameda, a subsidiary. FTX had no cfo, no regulatory compliance department, etc. it was a bunch of math nerds who did well during bull market and thought they were invincible. Google Caroline Ellison of Alameda, pick the video of your choice - says it all.