The failed deal between Binance and FTX has led to a massive fall in the crypto market. However, Jesse Powell, CEO of Kraken Exchange has stated the important things that have led to this catastrophe.
In a lengthy Twitter post, Powell noted that the industry is filled with many smart and passionate people. The fall of FTX is a big setback for them. However, it is time to raise our standards.
Powell is of the view that Sam Bankman-Fried (SBF) has paid a high price for gaining political support over time. In their drive to please DC, FTX have placed themselves in a crisis. FTX as a giant exchange has made big purchases including major sports deals and the SuperBowl.
Powell stated that this was reckless and greedy. All these things have caused one to risk all the hard-earned progress in the industry.
Kraken's CEO emphasized that US lawmakers and regulators are also responsible for this crisis. The authorities have located the business offshore and at the same time all this is happening because there is no strict law.
On the other hand, the US SEC and CFTC are investigating FTX SBF regarding its liquidity crisis. Authorities will investigate how the exchange handles user assets.
