Before FTX could be sued for fraud, its fall into Bankruptcy made it immune to immediate action from the regulating authorities
Leading crypto exchange FTX.
This became the reason behind the loss of billions of dollars of investors’ assets and a steep crash in the global crypto market. As if it was not enough, the dead corpse of this centralized exchange was feasted on by a supposed insider hacker causing additional damage of more than $600 million.
But before FTX could be sued for fraud, its fall into Bankruptcy made it immune to immediate action from the regulating authorities. In the first hearing of FTX’s bankruptcy case, John Dorsey is going to entertain FTX officials with the same questions as its stakeholders. The customers can expect some unforeseen disclosures in the FTX’s monologue in the upcoming hearing.
These incidents in the crypto industry have blighted the investors’ trust in centralized tools and pushed them to opt for free, open-source, and decentralized options. In light of the same reasons, a surge in the demand for Non-Custodial Wallets has been registered, making them a new industry standard.
Open source and non-custodial wallets such as Trust Wallet have lodged record downloads in a few days. However, things would have been completely different if investors would have learned the lesson before the FTT mass dump.
According to the Nansen reports, Ethereum lost right over $2 billion in post-FTX aftershocks along with over $3 billion in withdrawals in Tether stablecoin. Changpeng Zhao from Binance has drawn a parallel between this crisis with that of the 2008 recession and said that this is “probably an accurate analogy” to define the present market condition.
FTX and Alameda Research were one of the biggest holders of the Solana Blockchain Network and their mass dump has forced Solana to break all the support levels.
The event has dominantly affected the present market conditions, inciting instability in the space. However, this event will open our eyes to a decentralized future.
