Crypto industry grapples with FTX fallout as trial looms

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The collapse of cryptocurrency platform FTX, whose disgraced former boss goes on trial this week, sparked shock waves worldwide, with regulators still seeking to get to grips with the sector. The FTX furore sparked a crackdown from global regulators.

The collapse of cryptocurrency platform FTX, whose disgraced former boss goes on trial this week, sparked shock waves worldwide, with regulators still seeking to get to grips with the sector.on Tuesday facing seven counts of fraud that could see him spend decades in prison, capping a spectacular fall from grace.

The crisis also prompted a mass exodus of capital from the highly speculative industry and a string of otherFTX stoked concern over a sector dubbed by critics the"Wild West", with its promises of high returns in a volatile marketplace and a lack of oversight -- two aspects that can appeal to criminals seeking to launder money.Collapsing 'like dominos'

Stanford, author of best-selling book"Crypto Wars", said the FTX bankruptcy had also affected a lot of"people from the industry".-- so his fall tarnished everyone. A vast amount of cash was pulled from digital assets, particularly in a climate of rising global interest rates.

 

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