Since the stunning FTX collapse, investors in the company have been pushing the narrative that this was a business that looked rock-solid from the outside—so solid, they couldn’t possibly have predicted its downfall.
But from day one, FTX offered deeply risky products that fell well outside the norm of typical financial risk—so much so that those products weren’t allowed in the U.S. And on Thursday new details emerged about how flagrantly the company flouted its own safeguards.
