FTX pays its creditors

I followed closely the epic of the FTX crypto exchange. It was indeed an epoch-making event that shook the entire crypto market. The more the facts came out as the process progressed, the more my attitude to the former head of FTX Sam Bankman-Fried changed. At first, I thought he was a victim of circumstances that, like Binance, were being pursued for commercial and political reasons. However, then it turned out that the management of the company, the attitude to customers and simple reporting were organized completely irresponsibly, which was the reason for the bankruptcy. 

And I’d like to draw attention to the fundamental difference between the situations with FTX and Binance. FTX was operating quietly until the onset of obvious financial problems, and millions of users suffered as a result of bankruptcy. The Binance Exchange was persecuted despite the fact that none of its customers were harmed. Interesting difference, isn’t it?

And so, we have the news: FTX is ready to pay all debts  and interest to creditors. It would seem that everything is fine!

However, things are far from perfect.

The fact is that the growth of Bitcoin helped creditors earlier this year, and relatively small crypto assets on FTX wallets was enough to pay investors 100% of the amount of investments in dollars... but for the price of Bitcoin in 2022. This, of course, complies with the bankruptcy laws, but cannot be an excuse for FTX managers. Billions of dollars of cryptocurrency disappeared without a trace.

And once again, the way the FTX business was is carried out is absolutely unacceptable. Managers have forgotten that the company entrusted other people’s money. And it has a responsibility to people. Under no circumstances you allowed to touch customer money. 

Unfortunately, the managerial skills of many cryptocurrency executives are still far from perfect. 

#FTX  #cryptomarket #cryptocurrency  #Bitcoin #creditors