Fed president says FTX bankruptcy like situation will continuously occur

Neel Kashkari claimed that the whole crypto sector is full of fraud and that FTX collapse-like incidents will not stop in the future.

As we know that FTX was a popular second-ranked crypto exchange but on 8 November 2022 platform started to face an outflow of huge amounts of funds & further past mismanagement work by the FTX exchange team made the exchange fully bankrupt. On 11 November, FTX exchange founder & former CEO Sam Bankman-Fried (SBF) announced filing for bankruptcy for the exchange.

Recently Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, shared his personal opinion on the cryptocurrencies & crypto companies by taking the consideration of FTX exchange downfall. 

Mr. Kashkari said that here the downfall of the FTX exchange is not a single case, instead, it will not stop here because the whole crypto sector is full of corruption & nonsense. He also said that cryptocurrencies have no real use case and also there is not regulatory body.

This was not the first time when Kashkari passed negative statements against cryptocurrencies, last year he said that cryptocurrencies were full of fraud nature. 

At that time, he explained that cryptocurrencies are very easy to create, and don’t require any legal approval. He also admitted that he was optimistic about the future of cryptocurrencies but when he came to know that it was fully based on hype, noise & fraud then he realised that it was not more than nothing.

“I was more optimistic about Bitcoin and crypto five or six years ago. So far what I’ve seen is 99%, 95% – let me be charitable – 95% fraud, hype, noise, and confusion.”

Opposite of cryptocurrencies, he supports the US dollar as a valuable asset. He claimed that centralised control of the US dollar supply & security makes the US dollar powerful & useful over cryptocurrencies.

Read also: Binance investing in crypto hardware wallet business