Fun

Kraken CEO Discusses Impact of FTX Failure — Says Damage to Crypto Industry Is Huge, Will Take Years to Undo

News Feed - 2022-11-14 08:11:46

Kraken CEO Discusses Impact of FTX Failure — Says Damage to Crypto Industry Is Huge, Will Take Years to Undo


The CEO of cryptocurrency exchange Kraken has outlined the impact of FTX’s failure on the crypto industry. After listing multiple red flags, the executive stressed: “The damage here is huge … We’re going to be working to undo this for years.” Crypto Exchange Kraken’s CEO on Damage to Crypto Industry 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 filed for Chapter 11 bankruptcy Friday.


“This is a massive setback,” he began. “Our good, trusting nature makes us easy targets for con artists … This isn’t about aiming high and missing. This is about recklessness, greed, self-interest, hubris, sociopathic behavior that causes a person to risk all the hard-won progress this industry has earned over a decade, for their own personal gain.”


Powell listed a number of FTX red flags. Referring to former FTX CEO Sam Bankman-Fried, who stepped down after the bankruptcy filing, Powell explained that the first red flag is “acting like you know everything after showing up to the battle 8 years late.” The second red flag is spending “9 figs buying political favor.” The third is “being overeager to please DC,” and the fourth is making “huge ego purchases, like 9-fig sports deals.” The next red flag is “being a ‘media darling,’ seeking out puff pieces.” Then there is also “EA [Effective Altruism] virtue signaling” and the FTT token, he detailed.


Powell opined: “We let clowns ride under our banner while they sell us out for their own interests. We give them power to speak for us but they haven’t earned that privilege. When they blow 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 huge. 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 media, the ‘experts’ failed,” he continued, adding that people “torched their own reputations” vouching for individuals, projects, and businesses they had not done proper due diligence on. “Retail looks to you, presuming that you have done your job. You have a duty to be critical and withhold undue praise,” he noted.


“Don’t trust. Verify,” the Kraken boss then stressed, elaborating: U.S. lawmakers & regulators have some accountability too. You drove this business offshore because you refused to provide a workable regime under which these services could be offered in a supervised manner. Enforcement wrongfully focuses on convenient, on-shore good actors. Tags in this story cryptocurrency exchange Kraken, ftx, Jesse Powell, Kraken, Kraken CEO Jesse Powell, Sam Bankman-Fried


Do you agree with Kraken CEO Jesse Powell? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. FTX Collapse: Africa-Focused Payments Firm AZA Finance Slams "Erroneous Inclusion" in FTX Bankruptcy Filing FEATURED | 12 hours ago Elon Musk Tells Twitter Staff Economic Picture Ahead Is Dire — "Bankruptcy Isn"t Out of the Question" FEATURED | 24 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBank of Russia Sets Out to Regulate Digital Asset Taxation, Exchange, Still Opposed to Crypto Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"


The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Iran to Increase Penalties for Unauthorized Cryptocurrency Mining

News Feed

Stifel Financial: 97% of US Executives Surveyed Are Bracing for Recession
Stifel Financial: 97% of US Executives Surveyed Are Bracing for Recession A survey by NYSE-listed Stifel Financial shows that most executives are bracing for a recession in the U.S
Roaring Kitty buys another 4M GME stocks, birthing conspiracy theory
Ezra Reguerra11 hours agoRoaring Kitty buys another 4M GME stocks, birthing conspiracy theoryKeith Gill, known as Roaring Kitty, buys 4 million more GameStop (GME) shares, increasing his holdings to over 9 million shares
13 Crypto Exchanges Custody 7% of the Crypto Economy, Coinbase Dominates With $56.2B AUM
13 Crypto Exchanges Custody 7% of the Crypto Economy, Coinbase Dominates With $56.2B AUM As 2022 begins, 13 different cryptocurrency exchange platforms have more than a billion dol
SEC drops investigation into Ethereum: Law Decoded
David Attlee4 hours agoSEC drops investigation into Ethereum: Law DecodedA letter from Consensys states that the SEC’s approval of spot Ether exchange-traded funds indicated that it had “updated its position to class
Bitcoin fees crash after record daily average of $128 on halving day
Brayden Lindrea7 hours agoBitcoin fees crash after record daily average of $128 on halving dayThe surge in block fees on the halving day was more than making up for the halved block subsidy miners were hit with — but t
Crypto firms among ‘greatest risks’ for money laundering in 2022-2023: UK govt
Tom Mitchelhill3 hours agoCrypto firms among ‘greatest risks’ for money laundering in 2022-2023: UK govtCrypto firms, wealth management companies, and retail and wholesale banking remain “particularly vulnerable”
Crypto exchanges to meet Nigerian SEC chief for regulatory talks
Amaka Nwaokocha14 hours agoCrypto exchanges to meet Nigerian SEC chief for regulatory talksThe meeting is expected to ignite positive changes that benefit all crypto stakeholders in Nigeria and internationally.1607 Total
Bluezelle is Resisting Censorship with a New Developer Grant: Interview with Neeraj Muraka
Bluezelle is Resisting Censorship with a New Developer Grant: Interview with Neeraj Muraka Online censorship has taken front and center since the sweeping ban of
Dogwifhat jumps 16% — WIF price eyes more gains as Solana ETF hype grows
Yashu Gola11 hours agoDogwifhat jumps 16% — WIF price eyes more gains as Solana ETF hype growsWIF has entered the breakout stage of its prevailing BARR Bottom pattern, with Solana ETF hype furthering the memecoin’s u
Athletic Shoe Giant Nike Looks Poised to Tackle Metaverse and NFTs: Report
Athletic Shoe Giant Nike Looks Poised to Tackle Metaverse and NFTs: Report Nike, the American multinational footwear and sports apparel giant, is getting ready to step into the met
India’s Central Bank Governor Warns About Crypto After Collapse of Terra LUNA, UST
India"s Central Bank Governor Warns About Crypto After Collapse of Terra LUNA, UST India’s central bank, the Reserve Bank of India (RBI), has warned about investing in the c
US senators urge CFTC to finalize ban on election betting
Brayden Lindrea22 minutes agoUS senators urge CFTC to finalize ban on election bettingIt comes as decentralized prediction platform Polymarket has gathered more than $500 million in bets on who will likely win the 2024 U