I agree it wasn't obvious FTX would just take all the money, but it was obvious that you could lose all your money.
"The very first Bitcoin exchange, Mt. Gox, collapsed in 2014". Different reason, similar outcome.
And Bitcoin was down 2/3 from peak when FTX collapsed. Close to losing it all. And enough doomsayers to know any gambler was running that risk.
And countless prior examples in lots of markets showing that speculation in risky assets is very risky!
You often don't know the specifics of why something is risky, so even if a particular outcome was unlikely, that doesn't mean an investment was "savings".
"The very first Bitcoin exchange, Mt. Gox, collapsed in 2014". Different reason, similar outcome.
And Bitcoin was down 2/3 from peak when FTX collapsed. Close to losing it all. And enough doomsayers to know any gambler was running that risk.
And countless prior examples in lots of markets showing that speculation in risky assets is very risky!
You often don't know the specifics of why something is risky, so even if a particular outcome was unlikely, that doesn't mean an investment was "savings".