Ftx not a crypto problem, says ripple ceo at davos 2023

Davos 2023: While talking at the World Economic Forum being held at Davos, Switzerland, the people from the community were seen shrugging off their hands from FTX and its former boss

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 called the FTX case a money laundering fraud. In addition, people should not claim that this is a crypto issue.

Garlinghouse also described ‘s personal exposure to the defunct crypto exchange. Wednesday, he said that ftx had received an xrp lease of $10 million ripple, which they used for a variety of ftx-related spending.

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

FTX, failure of an institution?

Rene reinsberg, the co-founder of celo, at a panel discussion organized by cnbc on Thursday, said ftx was a failure of an institution and people. That would have to be differentiated from crypto technology.

While recognizing that FTX has tarnished the image of the crypto industry, Jeremy Allaire, CEO of Circle, told CNBC in an interview on Tuesday said that many people backed FTX and now they are facing the backlash.

Organizations should be well managed, well funded, highly regulated, well audited, and rigorously monitored. In his opinion, all these things are important for the management of a world financial institution. If not, they will be looked at much more carefully and people will start paying more attention to them rather than just accepting it as a fairytale, added allaire.

Also read:Ripple objected to the redaction of the SEC sponsor; will the guard dog respond?

FTX being compared to the biggest investment fraud

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 and the SEC just ignored, so, no restructuring of the hedge fund regulations.

He says other asset classes have also suffered significant losses, so it would be dishonest to distinguish cryptocurrencies in investor loss estimates from dangerous assets in 2022. He mentioned the best American shares in the field of technology, which were also hard hit.

Two thousand billion dollars were lost last year from facebook, amazon and tesla. We are told that no one is disputing the investments in these companies.

Also read:Crypto Giant Genesis To File For Bankruptcy As Early As This Week