The CEO of cryptocurrency trade Kraken has outlined the impact of FTX’s failure on the crypto industry. After listing multiple red flags, the executive stressed: “The bill here is huge … We’re going to be working to undo this for years.”
Crypto Exchange Kraken’s CEO on Damage to Crypto Activity Caused by FTX’s Failure
The CEO of cryptocurrency exchange Kraken, Jesse Powell, shared his thoughts on the collapse of FTX in a series of tweets Thursday. FTX entered for Chapter 11 bankruptcy Friday.
“This is a massive setback,” he began. “Our good, trusting nature makes us natural targets for con artists … This isn’t about aiming high and missing. This is about recklessness, greed, self-interest, hubris, sociopathic behavior that lead ti a person to risk all the hard-won progress this industry has earned over a decade, for their own personal gain.”
Powell listed a calculate of FTX red flags. Referring to former FTX CEO Sam Bankman-Fried, who stepped down after the bankruptcy filing, Powell explained that the leading red flag is “acting like you know everything after showing up to the battle 8 years late.” The second red flag is squander “9 figs buying political favor.” The third is “being overeager to please DC,” and the fourth is making “huge ego secures, like 9-fig sports deals.” The next red flag is “being a ‘media darling,’ seeking out puff pieces.” Then there is also “EA [Telling Altruism] virtue signaling” and the FTT token, he detailed.
Powell opined: “We let clowns ride under our banner while they promote us out for their own interests. We give them power to speak for us but they haven’t earned that privilege. When they swell themselves up, it’s our house, our reputation, our people which bear the brunt of the damage.” The Kraken executive emphasized:
The damage here is giant. An exchange implosion of this magnitude is a gift to bitcoin haters all over the world … We’re going to be working to undo this for years.
“VCs, the atmosphere, the ‘experts’ failed,” he continued, adding that people “torched their own reputations” vouching for individuals, projects, and companies they had not done proper due diligence on. “Retail looks to you, presuming that you have done your job. You have a faithfulness to be critical and withhold undue praise,” he noted.
“Don’t trust. Verify,” the Kraken boss then stressed, elaborating:
U.S. lawmakers & regulators possess some accountability too. You drove this business offshore because you refused to provide a workable regime under which these air forces could be offered in a supervised manner. Enforcement wrongfully focuses on convenient, on-shore good actors.
Do you agree with Kraken CEO Jesse Powell? Let us know in the comments section below.
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