Mike Novogratz, CEO of crypto investment company Galaxy Digital, has said that not all crypto exchanges are now run like the collapsed FTX.
in one interview with cnbc squawk box On December 15, Novogratz said that not every crypto boss is trying to steal users’ money and that not all crypto platforms are governed the way FTX is governed. He said:
“It’s really dangerous to think that when you have a black swan, you’re going to see them everywhere. That you’re going to have criminal organizations everywhere and these places are going to be run by sociopaths. That’s not the case.”
In crypto, a “black swan” risk refers to the possibility of an unexpected event occurring. The term was first popularized by crypto critic Nassim Nicholas Taleb in his book “The Black Swan: The Impact of the Highly Improbable”.
The crypto billionaire noted that although not all exchanges follow every single regulation, some are working round the clock to comply with the regulations and bring in stronger security. she added:
“A lot of exchanges are under some attack from regulators [know your customer/anti-money laundering] Violation, often in the past. When they started, they didn’t have as strong protections against anyone using their exchange as they do now. But I don’t think there is someone stealing your money under every rock.
Meanwhile, Novogratz predicted that lawmakers will eventually need to ease their tight fiscal and monetary policies, which will drive crypto prices higher in the future. He also argued that crypto adoption continued to expand for the industry despite overall bad conditions.
“Even in this terrible bear market in crypto, you are seeing new ways that people can participate in bitcoin and the crypto market.”
Novogratz’s comments come as the recent collapse of FTX, once the third largest cryptocurrency exchange in the world, has eroded user confidence in centralized crypto platforms. An initial investigation into FTX and its disgraced founder Sam Bankman-Fried revealed that blatant fraud and forgery was going on at the exchange.
As mentioned, the SBF was Arrested The Bahamas’ government announced the decision on Monday after US prosecutors formally filed criminal charges against them. The Southern District of New York has charged SBF with eight criminal charges, including wire fraud and conspiracy by misappropriation of customer funds, while the SEC separately charged SBF with “conducting a scheme to defraud equity investors in FTX”. have put.
Notably, Binance, the world’s largest cryptocurrency exchange, has also seen a wave of withdrawals over the past few days as rumors about alleged problems on the platform continue to spread like wildfire. In particular, saw the exchange over $3 billion Worth withdrawing on Tuesday.
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