FTX founder arrested in Bahamas
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Future currency ie cryptocurrency (Cryptocurrency)ever since FTX, one of the world’s largest cryptocurrency exchange (FTX) Founder Sam Bankman-Fried (Sam Bankman-Fried) Has been arrested. New questions have arisen regarding both the value and future of this tech currency. Is there any answer to these questions? Understand here…
Sam Bankman-Fried is accused of financial fraud. This is one of the biggest such cases in America so far. A criminal case is also going on against him in this matter.
‘Palace built on the foundation of deception’
US investigative agency officials accused the American entrepreneur and former billionaire of “building a castle on a foundation of deceit” ahead of his arrest in the Bahamas on Monday. Sam Bankman-Fried’s arrest comes amid several shocking revelations, such as that Sam Bankman-Fried transferred billions of dollars to her private firm, Alameda Research, without informing her clients.
Reuters reported on Wednesday that a privileged access to hedge fund Alameda Research gave its owner Sam Bankman-Fried a “nearly unlimited line of credit” on the trading platform. It is believed that FTX chief engineer Nishad Singh brought about this change by tweaking the program and wrote to the founder, ‘Be extra careful, lest you go bankrupt’
People’s trust should not be shaken!
Due to this shocking revelation, people’s mistrust about cryptocurrency can be further shaken. Experts believe that by making cryptocurrencies more developed, financial security should also be provided to investors. It is necessary to bring stability, only good approach will not work.
The arrest of Sam Bankman-Fried, who is running his business without accountability and ethics, has made people engaged in earning more money in less time aware of its dangers. There is a need to know the real value of cryptocurrency before investing in it. After this case, people’s perception about cryptocurrency has definitely deteriorated.
The ever-increasing risk associated with cryptocurrencies
Liam Bourke, who teaches at the University of Virginia, wrote in the Wall Street Journal, “The bankruptcy and sale of FTX will force many to think again. There is no speculative gain in this. In this, the future is uncertain and there is no increase in the net worth of the holder.
The risk is also much higher in this as compared to traditional currency. Many cryptocurrencies have already fallen well below their face value. The risks associated with these are on the rise. The value of these currencies is continuously collapsing like a house of cards. Due to this, people’s faith in cryptocurrency is continuously decreasing.
As US investigative agencies and courts complete investigations and hearings into violations of anti-money laundering laws and sanctions at the world’s largest cryptocurrency exchange, Binance, the future for cryptocurrencies does not look bright.
Investors demand rules for crypto market
Investors and finance experts are demanding regulations regarding the crypto market, so that everything remains in front of the public, that is, accountability remains. However, the road ahead looks long and uncertain. Better regulation of agent-dealers, exchanges and lending regarding crypto markets is expected to restore people’s confidence.
However, many believe that the FTX episode is the final nail in the coffin for the demise of cryptocurrencies. These days their prices are at their lowest level. In the first half of this year, bitcoin and ethereum recorded a decline of more than 50 percent from their all-time highs at the end of 2021.