A failed deal between Binance, the world’s largest crypto exchange and FTX has led to a major collapse of the crypto market. However, Jesse Powell, CEO of Kraken Exchange has stated crucial points which have led to this debacle.
Powell highlights SBF, FTX mistakes
In a long Twitter post, Powell stated that the industry is filled with many smart and passionate people. The collapse of FTX is a massive setback for them. However, it is time to raise our standards.
Powell highlighted the vital Red flags that Sam Bankman-Fried (SBF) and FTX could have avoided. He stated that acting like you know everything and that too after entering battle after 8 years.
He alleged SBF paid in 9 figures to buy political favors over time. While being overeager to please the DC has cost them this crisis. FTX as an exchange made a huge ego purchase which includes major SuperBowl and sports deals.
Powell added this is not just about aiming high and missing. It is also about being reckless, greedy, hubris and showing sociopathic behavior. These all things have caused a person to risk all the hard won progress in the industry.
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Did US regulators lead to this collapse?
Kraken CEO highlighted that US lawmakers and regulators are also accountable for this crisis. The authorities drove the business offshore. All this happened because of the unavailability of a workable regime.
Coingape reported that US SEC and CFTC are probing the SBF’s FTX over its liquidity crisis. The authorities will be investigating the manner in which the exchange handled users’ assets.
However, Powell informed that Kraken wasn’t exposed to any disasters. They aim to give users access to bleeding-edge crypto products.
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