While FTX customers remain optimistic about the future of cryptocurrency, their battle for compensation continues.
As Sam Bankman-Fried (SBF), the former CEO of the defunct FTX exchange faces criminal charges, customers who lost significant sums in the debacle remain bullish on crypto. In a new CNBC documentary premiering later today, they share their experiences and explain why they remain optimistic about the industry, even after losing everything.
The Crypto Bullishness
Evan Luthra, an app developer, entrepreneur, and angel investor, stands as a testament to the unyielding spirit of crypto enthusiasts. Luthra admitted to losing a staggering $2 million in the FTX exchange collapse. He acknowledged that he knew he wouldn’t have access to his money for years after FTX filed for bankruptcy.
However, Luthra remains optimistic about cryptocurrencies, emphasizing that the core reasons for using and investing in Bitcoin have not changed. He believes in Bitcoin’s long-term potential and remains bullish on its price, even when it’s trading at a fraction of its previous all-time high.
Jake Thacker, another FTX customer in Portland, Oregon, spoke of his significant losses, which forced him to consider filing for bankruptcy. However, he still encourages people to invest in crypto while offering a word of caution based on his experience.
Sunil Kavuri, with a background in traditional finance, said he initially saw FTX as a safe haven for his digital assets due to institutional backing from firms like Sequoia and Paradigm. Although he has refrained from purchasing crypto since the FTX collapse, he remains a staunch believer in the cryptocurrency market’s potential and has spent much of his time advocating for the rights of affected FTX users.
While FTX customers, including Evan Luthra, remain optimistic about the future of cryptocurrency, their battle for compensation continues. At a bankruptcy hearing in April 2022, an attorney for FTX announced that $7.3 billion in cash and liquid crypto assets had been recovered from the exchange. However, none of the interviewed customers have reported receiving any of their lost funds back as of now.
Sam Bankman-Fried is currently facing seven criminal charges for fraud and campaign finance violations. He has pleaded not guilty to all charges, and jury selection is set to begin in Manhattan on Tuesday. The outcome of this legal battle could have significant implications for FTX’s customers and the broader crypto industry.
Crypto Believers Forge Ahead Amidst Industry Challenges
Despite the chaos and uncertainty that gripped the sector last year, there remain notable figures who steadfastly believe in the transformative potential of cryptocurrencies.
Brett Harrison, the former President of FTX’s US business, found himself in a bewildering situation when his parent company, FTX, collapsed. Remarkably, he had parted ways with the exchange just two months before its downfall.
Rather than retreating from the crypto space, Harrison is doubling down on his belief in the industry. He revealed that he has been actively raising funds to establish a new company in the crypto sector, which he named Architect Financial Technologies.
Similarly, Anthony Scaramucci, the founder of SkyBridge Capital, who acknowledged losing $10 million in the FTX’s FTT token said he remains a firm believer in “a very strong bull case for Web 3,” a term encompassing the broader technologies surrounding cryptocurrencies and the potential future of a decentralized internet.