FTX

Crypto entrepreneur Sam Bankman-Fried was sentenced to 25 years in prison for a massive fraud that unraveled with the collapse of FTX, the massive crypto exchange.

Nishad Singh, former head of engineering at FTX, took the stand this week in the fraud and conspiracy trial against Sam Bankman-Fried.

"There were red flags all over FTX," said the New York Times' David Yaffe-Bellany. "Even in the kind of renegade world of crypto, these sort of lessons from traditional finance still apply."

The founder of bankrupt cryptocurrency exchange FTX faces fraud allegations in New York.

Recent scandals involving FTX and Frank leave some wondering if enough research was done on the startups, and who was supposed to do it.

Despite a raft of prosecutions and losses to investors in the billions, some say the industry has what it takes to find its feet.

"Interest in the crypto space, generally speaking, tends to track the price of bitcoin," a UCLA professor says of his computer science students.

The industry is trying to distance itself from the collapsed exchange. Can it?

FTX operated outside the confines of traditional regulations, and its customers are unlikely to recover their funds, says Semafor's Liz Hoffmann.

Binance cited a due-diligence check, saying the issues at FTX were "beyond our control or ability to help."