Ripple CEO Says FTX Not A Crypto Problem
While talking at the World Economic Forum being held at Davos, Switzerland, the people from the crypto community were seen shrugging off their hands from FTX and its former boss Sam Bankman-Fried.
Brad Garlinghouse, the CEO, of Ripple, told CNBC at Davos 2023 that people consider the FTX to be a crypto problem, however, if we get into the depth of it, it is not. He tagged the FTX case as fraud and money laundering. Also, people should not pretend it is a crypto problem.
Garlinghouse also described Ripple‘s personal exposure to the defunct crypto exchange. On Wednesday, he said that FTX had received a 10 million USD XRP lease from Ripple, which they utilized for a variety of FTX-related expenses.
Since the market reached its pinnacle at a combined value of 3 billion USD in November 2021, the crypto industry has seen almost 2 billion USD lost from its total market cap.
Garlinghouse was joined by his counterparts at Celo and Circle. Rene Reinsberg, the co-founder of Celo, said that FTX was a failure of an institution and of people. This should be differentiated from the technology of crypto.
While recognizing that FTX has tarnished the image of the crypto industry, Jeremy Allaire, CEO of Circle, said that many people backed FTX and now they are facing the backlash.
Garlinhghouse went on to compare the FTX case with Bernie Madoff, who is accused of having done the biggest investment fraud crime in the U.S. He said that people had not reported the case to SEC and the SEC simply overlooked it, hence, not restructuring regulations on hedge funds.
(With inputs from Shubham Joshi)
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