FTX Investors Unlikely To Get Their Money Back, Animoca Brands Founder Says

FTX Investors Unlikely To Get Their Money Back, Animoca Brands Founder Says. 

With FTX having been one of the most popular crypto exchanges at its peak, with millions of registered users, many are hoping to receive some of their investments kept within the platform back following the exchange’s collapse and bankruptcy. 

FTX Investors ‘Unlikely To Receive Their Money’?

In a recent discussion with Bloomberg, Animoca Brands co-founder and executive chairman Yat Siu talked about the crypto industry as well as the effect that the collapse of FTX may have had on it.

When asked about how important it is for the reputation of the crypto industry for FTX investors who have lost their investments in the crypto exchange to receive their money back, Siu replies that it looks unlikely for investors to be able to receive their money.

Related: FTX Founder SBF Engaged In Fraud For Years, Prosecutors Say

“I think it looks unlikely that investors are gonna be able to get their money back given everything that we know so far,” Yat Siu says, “Certainly I think, depositors and creditors are going to be the ones first in line, and people are already sort of — are writing it off anyways.” 

Yat Siu does note however that the crypto industry has also been able to benefit from FTX’s collapse in some ways, saying that companies and exchanges like Binance and Coinbase are now becoming more decentralized and able to withstand large amounts of customer withdrawals, as well as bring more awareness to the community about self-custody.

FTX New CEO’s Statements

On Tuesday, FTX’s new CEO John J. Ray III appeared before the House Financial Services Committee, publicly telling FTX investors, affiliates, and customers that they shouldn’t hold out too much hope in recovering their money.

Ray says “We will never get all these assets back,” explaining that the exchange’s lack of accounting and bookkeeping on their funds has made it extremely difficult to track where any of their funds have gone.

Ray says, however, that they will try their best to recover whatever amount they can of customers’ and investors’ funds by looking through WRS, Alameda Research, FTX.com, and a variety of venture investments made by SBF.

Related: SBF Denies Rumors Of Involvement With Wire Fraud Group Chat

For more info regarding Crypto Alpha and NFTs Alpha.  Always follow us on Twitter and Instagram.


Related post