The largest cryptocurrency exchange in the world, Binance, and FTX’s failed agreement have caused the crypto market to collapse completely. However, the fiasco was brought about by statements made by Kraken Exchange CEO Jesse Powell.
A Focus on SBF and FTX Mistakes by Powell
Powell claimed in a lengthy Twitter post that the sector is home to many intelligent and enthusiastic individuals. A major setback for them is the demise of FTX. But now is the moment to increase the bar.
Powell emphasized the crucial red flags that Sam Bankman-Fried (SBF) and FTX might have been able to avoid. Acting as if you are an expert on everything and doing so after 8 years in combat, he said.
He claimed that SBF spent nine figures to acquire political favors over time. Nevertheless, their eagerness to win over the DC has cost them this catastrophe. The exchange FTX completed a sizable ego acquisition that included important Super Bowl and sports agreements.
It’s not simply about shooting too high and missing, Powell continued. It also entails acting sociopathically and displaying recklessness, avarice, conceit, and arrogance. All of these factors have led someone to jeopardize the industry’s hard-won advancements.
Is this Collapse the Result of US Regulators?
The CEO of Kraken emphasized that this situation is also the responsibility of US legislators and authorities. The business was forced offshore by the authorities. All of this occurred as a result of the lack of an effective routine.
FTX is being investigated by the US SEC and CFTC for its liquidity crisis. The way the exchange manages the assets of its users will be the subject of an investigation by the authorities.
Powell nevertheless stated that Kraken was not subjected to any catastrophes. They want to make cutting-edge crypto products available to people. When it comes to security and corporate operations, Kraken is extremely cautious.
According to speculations, Justin Sun may be putting the finishing touches on a collaboration with the FTX.
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