How CoinDesk’s reporting led to the downfall of FTX

Kevin Dugan of New York Magazine writes about CoinDesk led the charge in taking down FTX leader Sam Bankman-Fried.

Dugan writes, “On November 2, reporter Ian Allison broke the news that SBF’s formidable hedge fund, Alameda Research, was secretly propping up the crypto exchange FTX, the wellspring of his wealth and influence.

“‘This story took about a month from the point where I was told off the record that the Alameda balance sheet was weaker than most people perceive,’ Allison says. When he finally got a look at its assets, confirming the gist of the rumors, the mood was electric. ‘What’s going through your head is, excuse my French but, Holy shit,’ says Kevin Reynolds, CoinDesk’s editor-in-chief.

“The story set off an avalanche, upending the industry CoinDesk covers — and, in turn, relies on. Its corporate parent is Digital Currency Group, a crypto venture-capital firm that got caught off guard by the FTX collapse to the tune of at least $175 million. Since then, there have been questions about whether CoinDesk, which is editorially independent, would ultimately trigger the demise of the company bankrolling its journalism.”

Read more here.