Risk Management at crypto firms is in focus following FTX collapse

wsj

5 min read . Updated: 09 Jan 2023, 07:13 PM IST Mengqi Sun, The Wall Street Journal

FTX Chief Executive Sam Bankman-Fried told several investors on a call Wednesday that he needed emergency funding to cover a shortfall of up to $8 billion. Photo: Reuters

Recent turmoil has prompted questions about what the nascent industry is doing to manage risks and how to identify red flags that signal a firm is in trouble

Cryptocurrency companies are disclosing more information about their internal controls and risk management following the collapse of FTX, but a level of transparency in the industry that would make many investors feel comfortable remains far off.