Investor Allowed FTX Scam Grow, Claims Ripple CTO

The crypto market is still struggling to recover from the recent FTX collapse. However, David Schwartz, Ripple CTO has drawn some key learnings from the FTX fiasco. Earlier, Ripple CTO called Sam Bankman-Fried (SBF) a terrible trader.

Ripple CTO takes lesson for FTX crash

Ripple CTO in a Twitter thread mentioned that there is one important lesson that he believes will not be learned from this collapse. He added that if someone is holding billions of funds from other people for a long period of time then temptations to speculate with those holdings get irresistible.

However, if there are not many verifiable checks in the process then nothing else will be sufficient, he suggests. Ripple CTO pointed out that regulations and watchdog that punishes after the deed is done and won’t catch it earlier. Meanwhile, investors will also don’t do the analysis either.

The most important lesson that can be learned from the FTX crash is that temptation is irresistible. David Schwartz, mentions that most people will choose not to learn from this fact.

Investors did this for more profit?

He further added that expert investor groups who have access to confidential details of the firms couldn’t figure this out. While they invested hundreds of millions of dollars in the FTX. This looks like they were trying to punish FTX customers.

This depicts that they were too attracted by the profit motive. In this pursuit, they gave money to the scam and allowed it to grow and pull more people in. However, customers had no idea what was happening behind them.

Coingape reported that an FTX hacker is on a move swapping Ethereum for Bitcoin amid the crashing crypto market. As per the data, the hacker moved ETH in multiple batches of 15K. This has led to the ETH price drop.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

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