When BlockFi’s marketing materials and sales agents said his investment was safe and redeemable at any time, he took them at their word.The Aftermath of FTX’s DownfallThe sudden collapse of the crypto exchange has left the industry stunned.A Spectacular Rise and Fall: Who is Sam Bankman-Fried and how did he become the face of crypto? The Daily charted the spectacular rise and fall of the man behind FTX.Clinging to Power: Emails and text messages show how FTX lawyers and executives struggled to persuade Mr. Bankman-Fried to give up control of his collapsing company.Collateral Damage: BlockFi, a cryptocurrency lender that targeted ordinary investors eager for a piece of the crypto mania, filed for bankruptcy on Nov. 28, felled by its financial ties to FTX.A Symbiotic Relationship: Mr. Bankman-Fried’s built FTX partly to help the trading business of Alameda Research, his first company. The ties between the two entities are now coming under scrutiny.“They sold it to me, that there was no risk,” Mr. Butkus said, adding that he was unaware that BlockFi, which had borrowed money from FTX, was so closely tied to the exchange.Much of the money that Mr. Butkus, a self-employed businessman, invested came from the recent sale of his home in Plainfield, Ill. He was hoping to increase his savings with the interest on his BlockFi loan and then use the money to build a new home for his family. Now he wonders where his family, who are temporarily staying with his in-laws, will ultimately live.Lawyers for FTX and BlockFi did not respond to requests for comment.FTX, founded by Sam Bankman-F …
