The FTX bankruptcy saga has ignited a wave of questions about the company’s financial dealings, specifically concerning the alleged misuse of customer funds by its founder, Sam Bankman-Fried. Accused of misappropriating billions of dollars in customer deposits, Bankman-Fried allegedly funneled these funds to his affiliated trading firm, Alameda Research. This has raised concerns about transparency and governance within the cryptocurrency exchange landscape. FTX Creditor Representatives are now demanding answers regarding the specific methods behind these transactions, leading to a significant investigation into the potential misappropriation of funds by Bankman-Fried and his associates. The market reaction has been swift and harsh, with billions in losses impacting various exchanges and investors alike. This incident has prompted government scrutiny on crypto exchanges, increasing pressure for stricter regulations to prevent similar instances of illicit activity. Regulatory bodies are working towards implementing protocols that foster transparency and accountability within the cryptocurrency sector, aiming to restore investor confidence and stability to the market.