Let's talk about Cryptocurrency finances deal to bail out F
. T. I. Has fallen through leaving FT
. X. On the brink of collapse in a
tweet yesterday. Been in said quote as a result
of corporate due diligence as well as the latest news
reports regarding mishandled customer funds and alleged U. S
. Agency investigations. We have decided that we will
not pursue the potential acquisition of F. T.
X. Notable investors in FT. X includes sports
stars like Steph curry and tom brady as well as
major investment banks and VC firms such as Sequoia and
Softbank now early this year was valued at$32 billion
. The company now faces an$8 billion shortfall due
to withdrawal requests, according to people close to the
issue maker. Yeah. And what makes this even
more interesting Chloe saM bank man freed who runs F
. T. X. Telling investors yesterday that without
an immediate cash injunction they're going to need to file
for bankruptcy as a result of this, he informed
investors they faced a shortfall of$28 billion needed just
$4 billion just to remain solvent. He told investors
quote, I left up incredibly, I'm unbelievably grateful
if you can help us out in this situation.
I mean he also had a net worth of over
$30 billion wiped out by all of this news Chloe
baker. I think this is really, I mean
we've obviously seen quite a bit of meltdown in the
crypto sphere recently. But this is just kind of
a textbook example of why regulators are concerned about Cryptocurrency
why they have been raising red flags about it.
There's a reason that our banking sector is so heavily
regulated, it's to ensure the safety of investors and
the safety of the people who are putting their money
into these banks and instilling trust in these different exchanges
. You know, I also should mention too that
sec chair Gary Gensler has repeatedly warned about rick associated
with digital asset exchanges. He said platforms may be
violating security laws by offering these unregistered securities. And
to your point, you know, there is expected
to be this kind of multi billion dollar shortfall between
you know liability is you know what money they're expected
to cover here and we should know FTS one of
the biggest ones out there. So this is happening
to them that just only underscores the volatility when it
comes to the crypto space. By the way,
let's take a look over the major crypto currencies are
trading right now in this morning in wake of the
finance backing out of that deal for F. T
. X. Cratering as a result. Bitcoin falling
for actually but still well below the$20,000 marker.
Still at 17 to 1. Either. The only
crypto really having a positive day so far up about
6% and you do see finance coin down about 3.7%
at$290 a share