Blackrock CEO Larry Fink Says FTX Failed Due To FTT Token

FTX News: Asset manager Blackrock is one of the big names associated with investments in bankrupt crypto exchange FTX. In a latest, Larry Fink, the chairman and CEO of BlackRock, made some interesting comments on the Sam Bankman-Fried crypto empire collapse. He said Blackrock had a $24 million investment in FTX, which filed for bankruptcy earlier in November. The crypto exchange faced a significant liquidity crunch linked to alleged diversion of user funds to other companies owned by Sam Bankman-Fried.

“FTX failed because it created its own token.”

Also Read: FTX US Users Will Get 100% Of Their Money Back, Says SBF

He blamed the creation of its own token for the FTX collapse. These comments from the Blackrock CEO at the New York Times Dealbook conference assume huge prominence as the asset manager is the largest such company in the world. Earlier in August, the company launched a spot Bitcoin private trust. At the time, Blackrock said it saw substantial interest from some institutional clients for crypto integration.

Will SBF Go To Jail?

As FTX steers through the bankruptcy proceedings, ongoing investigations are focusing on whether the user funds are mishandled. Meanwhile, a section of the crypto community is wondering as to how SBF is roaming around freely after allegedly committing fraud. Many investors are wondering when SBF will be arrested. The U.S Securities and Exchanges Commission (SEC) is looking into potential diversion of user funds from FTX US users.

Also Read: FTX Collapse Should Not Be Consider As Failure Of Crypto: EU Deputy Director General

Meanwhile, FTX Japan users stand a chance to get their money back by January 2023. According to a Bloomberg report, FTX Japan made a draft plan for withdrawal of funds. The plan involves returning the assets through the liquid platform, which is owned by FTX. As per the latest plan, the Japanese entity of FTX has $94.5 million in cryptocurrency assets and $46 million in fiat money.

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

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