This is the case for most market makers in whatever markets they're in. A crash usually produces a huge trading windfall, and then the subsequent "recession" leaves people with little money to invest/gamble with. FTX's traders are veterans of the industry, and they understand the need to be lean when order flow is light, and the need to make as much as possible when it's hot. Coinbase just watched the best two years of trading pass in front of their eyes, and failed to monetize it even to 10% of its potential. If they're lucky, they will get another opportunity to do things right in 5 years. But the trading graveyard is filled with people/companies like Coinbase who did really well for a year because they lucked into a good position, but who should have done 10x better. But then the real players see the opportunity, and run the Coinbases of the world off.

FTX is in deep with Tether. I expect they'll pull some tricks out of their collective hats to avoid a complete collapse.

Pulling tricks needs a new sucker pipeline. But sucker pipelines will dry up as old suckers get burned and money is generally drying up due to interest rates.

Don't need new suckers if you're running the largest money counterfeiting operation in human history.