FTX collapse crushes crypto dreams in Africa and beyond

[daydream]

https://www.reuters.com/article/crypto-currency-fallout-idUSL8N32K0XE

 

Days before his FTX cryptocurrency exchange collapsed, co-founder Sam Bankman-Fried tweeted “Hello, W

est Africa!” - his latest nod to a region where a growing number of kitchen table investors had put their faith, and savings, in FTX.

In South Africa, Nigeria and Ghana, FTX held a series of swish events in the months leading up to its bankruptcy filing in the United States on Nov. 11, which sent shockwaves through the crypto world and major coin prices plummeting.

 

In Nigeria, where many young people see cryptocurrency as offering a chance for income amid economic woes including double-digit inflation and high unemployment, FTX’s demise has been painful.

 

“It hurts more than I can express,” said Osarieme Aghedo, who works in marketing at a Nigerian startup.

Like him, many Africans used FTX as a bank, as it offered 8% annual interest rate on the stablecoin stored on the platform. Customers also used FTX to convert their local currencies to dollars.

 

The Monetary Authority of Singapore (MAS) said it could not protect local users from the FTX collapse, as it had not given FTX a licence, and that the exchange had operated offshore.

“The most important lesson from the FTX debacle is that dealing in any cryptocurrency, on any platform, is hazardous,” MAS said in a statement last week.

 

“As MAS has repeatedly stated, there is no protection for customers who deal in cryptocurrencies. They can lose all their money.”

 

[daydream]

https://thedefiant.io/ftx-ceo-john-ray-congress

Testimony of Mr. John J. Ray III CEO, FTX Debtors December 13, 2022 House Financial Services Committee

 

“But never in my career have I seen such an utter failure of corporate controls at every level of an organization,” he told lawmakers. “The FTX Group’s collapse appears to stem from the absolute concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company that is entrusted with other people’s money or assets.”

[Dustparticle]

2 hours ago, Imagine said:

https://thedefiant.io/ftx-ceo-john-ray-congress

Testimony of Mr. John J. Ray III CEO, FTX Debtors December 13, 2022 House Financial Services Committee

 

“But never in my career have I seen such an utter failure of corporate controls at every level of an organization,” he told lawmakers. “The FTX Group’s collapse appears to stem from the absolute concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company that is entrusted with other people’s money or assets.”

And the governments allowed it to happened especially the Feds. Why? I think if this scam was working, then they was going to have their hands in it and tell everyone to join in. Sick world.