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Crypto Is Not Too Big to Fail, Even With Help From FTX

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Billionaire Sam Bankman-Fried has extended a $250 million credit line to lending platform BlockFi. FTX Trading Ltd. has made an additional $200 million of credit and a separate 15,000-Bitcoin revolving facility available to Voyager Digital Ltd. FTX is headquartered in the Bahamas because, as the New York Times puts it, 80% of its revenue stems from a trading instrument that remains illegal Stateside. While FTX’s $1 billion-a-year in revenue carries huge weight in crypto-land, in terms of credit, counterparty risk this exchange is nothing like a regulated Wall Street firm. But strip away the hype, and it still looks like turtles all the way down, writes Andrew Keen. Source

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