Citadel CEO Declares FTX’s Demise “One of the Greatest Tragedies in Financial History”

• Ken Griffin, Citadel CEO has termed FTX’s collapse as one of the biggest “travesties.” 
• Griffin argues that the FTX’s demise will cause the trust of a generation of investors.

Kenneth C. Griffin, the CEO of US-based hedge fund company Citadel LLC, has slammed the struggling cryptocurrency exchange FTX and its founder Sam Bankman-Fried. During a recent interview at the Bloomberg New Economy Forum, Citadel CEO termed FTX’s collapse as one of the biggest “travesties,” in the history of the crypto industry. Griffin also chastised Bankman-Fried for his unusual connections to the Democrats.

Griffin stated:

You know, on the balance sheet at FTX there’s a line that says ‘Trump Lose. And Sam was the second biggest donor of the Democratic candidates.

He further mentioned that FTX has entered into territory “that all of us are concerned about.”

Griffin Slams FTX

FTX, one of the leading crypto exchange platforms, is currently going through a federal investigation. It is alleged that Bankman-Fried transferred $10 billion in assets belonging to his customer from the platform to his trading company, Alameda Research, which afterward experienced a liquidity crisis that compelled FTX to file for bankruptcy.

In accordance with the FTX collapse, Griffin expressed: 

Those are really, really, ugly facts when you see a fraud of this nature having played and you find no regulators were there to prevent it. That’s a really, really tough story.

Griffin argues that the FTX’s demise will have societal consequences since it will damage the trust of a generation of investors. According to him, the investors might also lose trust in the crypto market.

Moreover, the Citadel founder also mentioned the need for the collaboration of US regulators to oversee the cryptocurrency market, calling it “preposterous” that “they all dance around who owns what and who.”