“We Got Overconfident And Careless”- FTX Founder SBF

FTX founder Sam Bankman-Fried aka SBF is carrying on with his weird tweets that started two days back. In his recent tweet SBF accepts he got carried ahead with all fame and glory leading to his overconfidence. Meanwhile, US congress has announced to hold a hearing on FTX collapse including Binance and others.

SBF blames High leverage as reason for FTX collapse

FTX crisis has exposed the whole crypto industry and many companies are facing serious finance problems. Meanwhile, SBF has continued with his twitter thread and he today explained his reasoning behind FTX crisis. SBF says that he was wrong about the leverage which he calculated were $5 billion. He cites $13 billion leverage and FTT token price crash as ultimate reasons for FTX demise.

Meanwhile, crypto community is not convinced with his justifications and continues to demand strong legal actions against SBF. One of the twitter users accused SBF of stealing users funds. Crypto community believes user funds at FTX exchange were used by Alameda to do their investments.

 More crypto companies facing similar fate as FTX

FTX crisis is making day to day operations difficult for many entities. Yesterday, the news of BlockFi filing for bankruptcy shook the crypto world again. Today, Genesis Global capital and Gemini exchange were talk of the crypto community.

Genesis Global a company with $2.8 Billion in active loans today decided to suspend customer withdrawals. It is worth noting that Genesis is also a victim of Terral Luna collapse earlier this year. Gemini crypto exchange went down today causing panic among investors. The outage was short lived but users were unable withdraw funds for hours.

Fortunately, Gemini is back online and withdrawals are working normal. But, clearly FTX failure is definitely not short lives and worst isn’t behind yet.

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

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