The crypto and the DeFi industry has been growing and getting more attention over the past few years but not always for the best reasons.
The Crypto industry is on fire, a dumpster fire.
A recent crypto crash that began earlier this year has led to a "crypto winter". Several crypto companies have faced massive panic sell offs and even shuttered operations filing for bankruptcy.
The following crypto companies have encountered financial difficulties this year:
- Terraform Labs
- Voyager Digital
- Celsius Network
But FTX—the fourth largest crypto exchange in the world was thought to be to big to fail. That all changed earlier this month when the company posted a statement on Twitter on November 11th announcing that Sam Bankman-Fried, CEO of FTX, would step down from his role.
The enforcement division of the Texas State Securities Board filed a declaration to investigate FTX for securities fraud in Texas on October 14, 2022.
In the filing the director of enforcement for the Texas State Securities Board - Joseph Jason Rotunda, wrote that he was, "able to set up an account through the FTX app to earn yield on his deposit of Ethereum, as well as funds transferred from his linked bank account."
He went on to state that, "FTX US has not registered to offer or sell securities in Texas".
Crypto investors and customers of FTX are left holding the bag as the company works through this latest crypto meltdown.
Bankman-Fried is sharing his version of, "what happened" on Twitter and ending with a statement claiming that he is, "doing everything I can for FTX's customers."
Texas Governor Greg Abbott;
took issue with the campaign donations that now former FTX CEO - Sam Bankman-Fried had made to the Democratic party before November mid-term elections, stating on Twitter:
This guy gave a million dollars to Beto. This Madoff-Style evaporation of customer's money should be a crime. Candidates who received this tainted money should return it so that innocent customers of FTX can get some of their money back.
What do you think?
Is this the end of crypto?
Let me know your thoughts in the comments.