The collapse of one of the largest crypto trading platforms in the world has threatened the industry. Millions of customer funds have been lost and there is no telling whether or not they will be refunded. Still, casual investors were the real victims of the ftx scandal.
Sam Bankman Fried, a 30-year-old billionaire, has ripped off the entire industry. Bankman-Fried formulated a plan that used clients’ assets through his trading firm, Alameda Research, and is responsible for the loss of millions. But his greatest victims are somehow forgotten.
Casual investors pay the highest price
Cryptocurrency has always been and always will be a volatile investment venture. There is an inherent risk associated with digital assets being magnified compared to traditional investing. Whether it is the youth of the industry or the rapid development of technology, the stakes are undeniable.
That risk was never expected to materialize in the tragedy that befell so many when FTX collapsed last month. Subsequently, that tragedy cost everyone involved, but none more so than the casual investor.
The New York Times had a story today about a man named Adrian Butkus. He is a 43-year-old father of two and he has deposited $600,000 of his own savings into a BlockFi account. It was an investment that was sold to Butkus because of its “risk-free” nature and “6.5% stake”.
As this month saw the industry’s devastation — with BlockFi impacted by the FTX contagion — Butkus asked for his money back. Consequently, BlockFi had blocked all recordings. The company has since been declared bankrupt.
Butkus is one of millions of investors who have suffered huge losses from the devastation of the FTX and its trickle-down effects. In addition, Butkus represents the truest face of the victims. Because FTX didn’t just steal from billionaires or millionaires, they also stole from casual investors.
The face of crimes committed by Sam Bankman-Fried is the face of ordinary people. After the growth of the industry they invested in, it was FTX that preyed on their confidence. People gave money they needed, hoping to invest in an industry that promised to protect them. In short, justice for the industry must first start with justice for them.