Assignment task:
Respond this question in 300-450 words: Analyze the causes for the collapse of FTX and identify the red flags of counterparty risk related to investing in crypto companies.
Review Case Study: THE FTX COLLAPSE: DUE DILIGENCE AND COUNTERPARTY RISK MITIGATION WHEN INVESTING IN CRYPTO COMPANIES
Important Note: Use the case as your absolute main resource, along with supplemental materials if provided. Your answers should be primarily based on the case. Quote the case precisely to demonstrate thorough reading and analysis. Be specific by referencing the page and section. This ensures you read the case carefully rather than relying on external information. Do not list the case or the supplemental material itself as a reference, as it will trigger the plagiarism tool. You can use external resources and reference them at the end, but your arguments should not be structured around them to stay on subject.
Example of Proper Quoting: If answering question, you should reference specific sections of the case like this: "According to the section on FTX's governance, the main red flag identified is the lack of proper financial controls (page number)."