Many investors lost more than half of their funds on FTX and are wondering if they will ever be able to recover them.
The world’s third largest exchange, FTX, went bankrupt in a matter of days, and the community’s anguish is palpable on Crypto Twitter.
The magnitude of the losses
Crypto Twitter has clearly demonstrated the severe consequences of the FTX collapse. Many investors lost more than half of their funds on FTX and are wondering if they will ever be able to recover them.
95% funds on ftx. The pain is fucking real.
— Mohit Sorout ? (@singhsoro) November 9, 2022
Some are nervously hoping to recover their investments, while others have already given up. In response to the above Tweet, an investor stated:
“Your funds aren’t on FTX. Your funds are gone.”
Investors have also lost money as a result of the falling FTT.
Given that FTT is FTX’s native token; it’s not surprising that investors hold significant amounts of FTT for trading purposes. Even if FTX is able to allow its users to withdraw their funds, those who invested in FTT will still be out of pocket.
The collapse of FTT also reminded the community of the Terra-Luna disaster, which occurred only six months ago.
Some Crypto Twitter users drew attention to the harm these collapses did to crypto’s reputation and called for crypto regulations to prevent similar disasters in the future.
#Crypto need to be regulated…#FTX collapse is destroying crypto in the past few days.. pic.twitter.com/zy2AFcLimZ
— Pierre_Trading News (@Pierre_StockUP) November 9, 2022
Science.io CEO Will Manidis, on the other hand, claims that FTX CEO Sam Bankman-Fried was created by an intelligence agency to prevent its adversaries from laundering money through crypto.
if i were an intelligence agency, and i was concerned my adversaries were using crypto to launder funds– how would i stop that?
first i'd find the central casting idea of a tech founder– mit dropout, finance, cargo shorts, long hair, sleeps on a beanbag kind of guy
— Will Manidis (@WillManidis) September 21, 2022
According to Manidis, FTX’s offshore placement and unauditable transactions were done on purpose.
FTX first drew attention when Binance’s CEO Changpeng (CZ) Zhao‘s Tweet on Nov. 6, which revealed Binance’s decision to liquidate all its FTT holdings due to “recent revelations that have come to light.” Since FTT is FTX’s native token, the community was quick to jump to conclusions and assumed a Terra-Luna-style collapse was on its course.
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