FTX founder earned early success in arbitrage of cryptocurrencies. In simpler terms he made money off the difference in prices of cryptocurrencies in different exchanges around the world.
Concerns were raised that FTX was being used to siphon money, which ultimately led to series of events and revelations and ultimately to the bankruptcy of the company.
Ups and downs come in every industry, but this crash has raised serious questions on the vulnerability of the investors' money. The regulation of these companies in a more robust manner is a serious need as this industry is now worth trillions
of dollars, that has the potential to impact life of every human on this planet.