Crypto exchange filed for chapter 11 bankruptcy last week Friday where the founder and former chief executive Sam Bankman-Fried said he expanded his business too fast and failed to notice signs of trouble at the exchange, whose downfall sent shock waves through the crypto industry according to the New York Times.
“FTX faced a severe liquidity crisis that necessitated the filing of these cases on an emergency basis last Friday,” the court filing stated.
“Questions arose about Mr. Bankman-Fried’s leadership and the handling of FTX’s complex array of assets and businesses under his direction.”
FTX has appointed five independent directors at its various units to ensure proper corporate governance during its bankruptcy, lawyers for the company said in the filing. Former U.S. District Court Judge Joseph Farnan and Matthew Doheny will oversee FTX Trading, Reuters reported.
The collapse of the crypto exchange FTX got a lot of people talking from banking regulators and central banks of different countries. Meanwhile French central bank governor Francois Villeroy de Galhau IS calling for regulation in the crypto market.
“Let me stress that this uncertainty is why we need to regulate strongly and quickly crypto assets internationally,” he said. “The last episodes show us that we cannot allow for a second ‘crypto winter’ to still add to uncertainty and financial instability.”
We all know when the government is involved things fall apart, we saw here at home in South Africa and across the world that some government officials are up to no good and we can’t trust them with our money anymore. Blockchain and cryptocurrencies are our last hope when it comes to the financial sector and now the FTX story happens.
What’s next for the crypto market space as the winter keeps biting? Just like any other business, some will make it while some will fail. Let’s cast our eyes back, and remember what happened during the internet crush we had companies such as Ask Jeeves and Dog Pile which folded and out of that we had the successes of tech giants such as Google, Yahoo, Amazon and now Meta Platforms Inc.
What happened to FTX is a natural progression of the business, some will make it and some will die, government should not interfere, unfortunately.
