FTX bankruptcy: chaos on the crypto markets

The collapse of Sam Bankman-Fried's crypto exchange FTX has sent shock waves through the cryptocurrency sector, with prices falling across the board. The Bahamas authorities are investigating claims of embezzlement and hack attacks in which huge sums were stolen. The media puzzle over what went wrong.

Open/close all quotes
De Standaard (BE) /

The dream of quick money

There's no need to feel sorry for investors, says De Standaard:

“Promises of improbable returns came quickly. And should anyone be surprised that the lack of rules opened the door wide for dirty money? Besides, the 'smart' crowd clearly consists of adventurers, opportunists or naïve and above all young investors who want to get rich quick, without hard work and patience. ... The irony is that also the crypto-banker [former FTX CEO Bankman-Fried] who had just turned into an advocate of more regulation and an ethical approach to wealth had been cooking the books. ... Don't say that the investors weren't warned.”

Wiener Zeitung (AT) /

More controls needed

The crash of the FTX crypto exchange highlights the shortcomings of this industry, writes the Wiener Zeitung:

“In the meantime not only has FTX gone bankrupt, there are also growing indications of large-scale fraud. The supervisory authorities are working to shed light on the entangled dark side of this case. The FTX crash is by no means an isolated case; the list of dubious cryptocurrencies is getting longer and longer. ... The crypto scene has a disproportionately high guru factor frequently combined with a glaring lack of financial and structural transparency. ... More controls are urgently needed, otherwise the interesting aspects of this technology, which is no longer brand new, will vanish into thin air, like Bankman-Fried's fortune.”

Kapital (BG) /

Chain reaction in the crypto sector

Last week was one of the darkest in the history of cryptocurrencies, Kapital comments:

“The bankruptcy of the Bahamas-based crypto exchange FTX, which until a few days ago was considered one of the most reliable platforms, has sparked new fears among investors. FTX joins a blacklist of big names that have gone under this year, including hedge fund Three Arrows Capital, crypto lender Celsius Network and broker Voyager Digital. ... It's disheartening to see the value of this groundbreaking technology plummet due to the collapse of one of the leading exchanges. This is the latest and biggest crash of a central entity in the crypto sector, and could well spell the bitter end of cryptocurrencies.”

Postimees (EE) /

Now is the time to buy!

There's no better time than now to snatch up shares, writes cryptocurrency adviser Asse Sauge in Postimees:

“These are uncertain times on the crypto markets. All the news confirms this. And it's not just the Estonian company Change, but all the crypto companies that are suffering losses. However, one should bear in mind that customers' assets are well protected and the business functions efficiently and is well regulated. In the case of Change there is no doubt that it is one of the most transparently regulated crypto companies in Europe. The fact that a major player is showing interest in purchasing stock demonstrates this. ... Yes, the market has dropped for now. But a real investor would buy now, when everyone else is selling.”