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The collapse of the 'Crypto King'

How a cryptocurrency exchange promoted by Tom Brady and Larry David collapsed — and why its billionaire founder is now effectively worth nothing.
Sam Bankman-Fried, founder of cryptocurrency exchange FTX, is shown during an interview with Bloomberg Wealth on Aug 17, 2022. (Jeenah Moon/Bloomberg)

In the last two years, cryptocurrency exchange FTX spent millions of dollars on advertisements with the likes of NFL quarterback Tom Brady and Curb Your Enthusiasm's Larry David.

FTX also sponsored Major League Baseball, the Mercedes Formula One racing team and Canadian businessman Kevin O'Leary. Earlier this month, Bloomberg ranked the platform's founder, Sam Bankman-Fried, as one of the world's 100 richest people. He was sometimes referred to as the "King of Crypto."

But now, after financial leaks triggered mass withdrawals and a halt in trading, Bankman-Fried is worth effectively nothing. FTX has gone from a recent $32-billion US valuation to bankruptcy. Today, CBC News senior business writer Pete Evans returns to explain how one of the world's three biggest crypto exchanges was brought down so quickly. 

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