We’re heading for brand spanking new crypto disaster, predicts Wall Street veteran
The crypto business is doomed to repeat the errors that led to the collapse of FTX, a prime Wall Street brief vendor has warned.
Cryptocurrencies had been plunged into disaster in 2022 after one of many largest buying and selling platforms FTX went bankrupt.
Thousands of individuals misplaced a mixed £7billion after boss Sam Bankman-Fried funnelled buyer deposits right into a separate firm he owned. This turned out to be one among largest ever US monetary frauds and led to his conviction final 12 months.
But Marc Cohodes, former hedge fund boss, has mentioned a fair bigger disaster may very well be brewing as regulators fail to implement protections for customers.
‘I do not suppose we’ve got realized any classes. It is worse than earlier than,’ he advised the Mail.
Concern: Cryptocurrencies had been plunged into disaster in 2022 after one of many largest buying and selling platforms FTX went bankrupt
‘Bitcoin is raging. Rules and rules have not modified.’ His feedback come after US regulators determined to approve so-called exchange-traded funds (ETFs), which look to make crypto buying and selling much more accessible.
The worth of bitcoin has surged practically 50 per cent in six months and is buying and selling at round $42,900.
And Cohodes mentioned there’s a reluctance on each side of the Atlantic to look at how Bankman-Fried constructed the now-bankrupt cryptocurrency change, and cease one thing comparable taking place. ‘Nobody needs to dig into how we received there with FTX.
The cash behind crypto and its exchanges are large and soiled. Money forces folks to look the opposite means,’ he mentioned.
