HomeCryptoNews of the day related to the collapse of FTX

News of the day related to the collapse of FTX

The never-ending leak of news pertaining to the collapse of FTX continues since the exchange platform fell into disgrace, now close to bankruptcy. Every CEO, executive, and industry expert has his or her take on the affair. Every day new news is leaking out regarding various aspects of one of the biggest crises to hit the cryptocurrency world. 

Between buying attempts, conflicting opinions, and new scenarios regarding the reasons for the implosion, every day the situation seems to be more transparent and clearer. Sam Bankman Fried‘s character is still in the spotlight, under investigation and under the merciless judgment of every person involved in the blockchain world.

Here are some updates on the FTX situation.

Morgan Creek CEO claims FTX collapse was used as scapegoat

Recently the CEO of Morgan Creek, Mark Yusko revealed his opinion regarding the situation affecting the FTX exchange platform. According to Mark Yusko, the whole situation and the scenarios created, stem from a punitive intent against the whole industry and its lack of transparency. 

In fact, the idea of the Morgan Creek CEO is that, according to Yusko, Sam B Fried has been used solely as a pawn, exploited to punish the industry. Mark Yusko, was not sparing at all in using strong terms against the FTX co-founder, even calling him an “idiot.” 

“They are just pawns in a very large and very elaborate system that is designed to launder money. It’s certainly possible that there was an intention on somebody’s part to have this as an example so that regulators could step in and punish the industry.” 

This is Mark Yusko’s take on decentralized finance, speaking about it in an interview with Kitco editor-in-chief Michelle Makori

The fact that decentralized finance is not controlled by any entity makes it different from classical finance, which means it is can be much more dangerous than it seems. It is all about trust, according to Marl Yusko, and not about transparency, security and accessibility as the crypto ecosystem would have us believe. The decentralized world replaces trust with truth, Yusko explained to Makori. 

“Who are the arbiters of trust today? Financial institutions, third-party intermediaries, a $7 trillion industry. “They would like not to be disturbed by defi and digital resources. It is possible that some incumbent group has tried to lobby for regulation to delay, obfuscate or change the course of this disruption.”

Yusko’s view of the crisis is that it is controlled by people above individuals Sam Bankman Fried or Caroline Ellison, just think of SBF’s “covert” participation in the midterm elections. 

Goldman Sachs looking to buy crypto companies after FTX collapse

Goldman Sachs executive Mathew McDermott is conducting diligence on a number of crypto companies, with an attempt to acquire. Crypto companies since the FTX crash have been completely devalued, Goldman Sachs buyers know that now that prices are low, it is time to buy.

Mathew McDermott, in an interview reported that all the big banks are seeing an opportunity in the crypto world and are ready to invest millions, only as long as it increases the necessary transparency and proper regulation. 

The FTX crisis has clearly disrupted the market, but that does not mean that the market ceases to function, the Goldman Sachs executive explained. Throughout history many times the market has suffered setbacks, from which it has always recovered great.

A loophole secured FTX the Australian license without due diligence

Again the finger is pointed at the lawfulness of some of the operations carried out by Sam Bankman Fried and his FTX. According to a report leaked by ASIC’s Joseph Longo, FTX acquired an Australian financial services license without having conducted full background checks.

According to a report dated Dec. 5, FTX purchased its AFSL from an existing license holder. Longo also added that ASIC had specifically requested the previous government led by Scott Morrison to close this regulatory loophole, but in the end the issue was left unresolved.

At present, ASIC is only able to examine a company when it applies for a new AFSL and then determine whether it has adequate compliance and capital controls.

Senator Deborah O’Neill added to the issue:

“FTX has had little or no corporate governance. We are talking about a real cowboy who came in, paid the price for an AFSL … An AFSL was for all intents and purposes moved from ASIC … But there is a huge risk here.”