What’s the saying? If it looks like a duck, swims like a duck and quacks like a duck, then it probably is a duck.
It says something revealing and horrifying, about the sector that the founder of the sector’s second-largest crypto exchange and arguably the most influential player in the sector doesn’t himself seem to understand his own financials.Sam Bankman-Fried, who has been tweeting extensively over the last week as FTX imploded, tweeted this week that the company had beenand that he had been mistaken about the level of leverage within the exchange. He thought it was about $US5 billion.
In the US there is ongoing wrangling over how intrusive any regulation should be and which regulator – the Securities and Exchange Commission or the Commodity Futures Trading Commission. Drawing on what has been learned from the FTX experience – and other collapses, hacks and frauds in the sector – it is clear that more transparency is required if investors are to be given their own ability to assess the stability of the organisations to which they trust their funds.
If FTX’s collapse means regulation that can bring more sunlight to bear on crypto markets and impose some core investor protections will be brought forward, that would be a good thing for investors and the credibility of the digital assets sector more broadly.
sure, jan
Great article
That moron needs to go to jail. He deserves jail more than the Luna founder. Like bank investing people money in shares and losing it all. As a trading platform, the fools invested from the other people's money without their permission and lost it and want someone else to pay.