// STARTUP COMPARISON
MexBT vs FTX
MexBT failed in 2017 due to Regulation. FTX failed in 2022 due to Fraud. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 MexBT | 🔥 FTX |
|---|---|---|
| Sector | Web3 | Web3 |
| Country | Mexico | USA |
| Founded | 2014 | 2019 |
| Died | 2017 | 2022 |
| Raised | $3M | $1.8B |
| Peak | Largest Mexican crypto exchange | $32B valuation |
| Primary Cause | Regulation | Fraud |
// WHY EACH FAILED
🔥 MexBT
Regulation
MexBT was Mexico's first significant cryptocurrency exchange. It operated in a regulatory grey zone before Mexico's Fintech Law (Ley Fintech) was enacted in 2018. Facing increasing regulatory uncertainty and unable to meet anticipated compliance requirements, MexBT shut down in 2017 and transferred its users to Bitso.
// LESSON
Operating in a regulatory grey zone is not a business model — it is a countdown timer. The exchange that invests in compliance infrastructure before the law arrives inherits the market. The one that waits inherits nothing.
Operating in a regulatory grey zone is not a business model — it is a countdown timer. The exchange that invests in compliance infrastructure before the law arrives inherits the market. The one that waits inherits nothing.
🔥 FTX
Fraud
FTX collapsed in November 2022 when CoinDesk revealed that Alameda Research held most assets in FTT token. A bank run followed. $8B in customer funds were missing. Sam Bankman-Fried was convicted in November 2023 and sentenced to 25 years in prison.
// LESSON
Customer funds are not operating capital. This is accounting 101, not a crypto insight. The collapse was a fraud problem, not a crypto problem.
Customer funds are not operating capital. This is accounting 101, not a crypto insight. The collapse was a fraud problem, not a crypto problem.
// EXPLORE FURTHER