Not All Crypto Exchanges Are Criminal Enterprises Like FTX – Billionaire Investor

In an interview with CNBC’s Squawk Box recently, Mike Novogratz, CEO of the cryptocurrency investment company Galaxy Digital, asserted that not all cryptocurrency executives are attempting to steal the money of their subscribers. Additionally, he stated that not all cryptocurrency platforms function the same way as FTX.

According to him, “it’s quite dangerous to presume that because there is one black swan, there will be many more in the future. Everywhere there will be criminal organizations, with some led by sociopaths.”

Most Crypto Exchanges Follow The Rules – Novogratz

The crypto entrepreneur emphasized that while some exchanges do not follow all rules, others actively do so and provide robust protections to their users. He added: “Regulators have penalized numerous exchanges over non-compliance issues.”

Novogratz further said that when these exchanges first started, they didn’t have nearly as good of AML policies in place as they do now. Meanwhile, Novogratz predicts that crypto prices will increase once governments are forced to relax their strict monetary and fiscal policies.

He added that despite the general poor market conditions, institutional crypto adoption keeps increasing. Even in this terrible crypto bear market, consumers have new opportunities to invest in cryptocurrency.

In the wake of the FTX contagion, Novogratz is not the only well-known investor to defend the crypto sector. Billionaire venture capitalist David Rubenstein stated this week that the impact from FTX doesn’t indicate the crypto sector will disintegrate.

Customers Lose Trust In Centralized Platforms After FTX’s Fall

As Novogratz pointed out, customers’ trust in centralized crypto platforms has been eroded by the recent fall of FTX. Before its collapse, FTX was the third-largest cryptocurrency exchange in the world.

FTX engaged in extraordinary fraud and deception, according to early investigations on why the exchange collapsed, which discredited its founder, Sam Bankman-Fried.

The Bahamas’ authorities reportedly apprehended SBF after US prosecutors officially charged him with a crime. The Southern District of New York has accused SBF of eight criminal charges, including conspiring to commit wire fraud and stealing money from customers.

The US financial watchdog charged SBF with “orchestrating a conspiracy to defraud stock investors in FTX.”

Related Posts