Billionaire Investor Mike Novogratz Says Not All Crypto Exchanges Are Criminal Organizations Like FTX

Mike Novogratz. Source: a YouTube video screenshot

Mike Novogratz, CEO of crypto investments firm Galaxy Digital, has stated not all crypto exchanges are run just like the now-collapsed FTX.

In an interview with CNBC’s Squawk Box on December 15, Novogratz stated not each crypto boss is attempting to steal customers’ cash and that not all crypto platforms are managed the way in which FTX was ruled. He stated:

“It’s actually harmful to suppose that when you could have one black swan, you’re going to see them in all places. That you’re going to have legal organizations in every single place and these locations are run by sociopaths. It’s simply not the case.”

In crypto, a “black swan” danger refers to the potential of the prevalence of an sudden occasion. The time period was first popularized by crypto critic Nassim Nicolas Taleb in his ebook known as “The Black Swan: The Impact of the Highly Improbable.”

The crypto billionaire famous that whereas not all exchanges adjust to each single rule, some are working across the clock to abide by guidelines and produce strong protections. He added:

“A number of exchanges are beneath some assault from regulators for [know your customer/anti-money laundering] violations, typically prior to now. When they began, they didn’t have close to as strong protections in opposition to who was utilizing their change as they do now. But I don’t suppose beneath each rock there’s a man stealing your cash.”

Meanwhile, Novogratz predicted that lawmakers would finally have to ease their tight fiscal and financial insurance policies, which might drive crypto costs larger sooner or later. He additionally argued that crypto adoption continued to develop for the trade regardless of general dangerous situations. 

“Even on this horrible bear market of crypto, you are seeing new ways in which folks can take part in Bitcoin and the crypto market.”

Novogratz’s feedback come because the latest collapse of FTX, as soon as the third-largest cryptocurrency change on the planet, has eroded person belief in centralized crypto platforms. Early investigations into FTX and its disgraced founder Sam Bankman-Fried reveals that there have been unparalleled fraud and deception happening on the change. 

As reported, SBF was arrested by the federal government of The Bahamas on Monday after US prosecutors formally filed legal fees in opposition to him. The Southern District of New York has indicted SBF on eight legal fees together with wire fraud and conspiracy by misusing buyer funds, whereas the SEC has individually charged SBF with “orchestrating a scheme to defraud fairness traders in FTX.”

Notably, Binance, the world’s largest cryptocurrency change, has additionally seen a wave of withdrawals over the previous few days as rumors about alleged issues on the platform proceed to unfold like wildfire. Particularly, the change noticed over $3 billion price of withdrawals on Tuesday.

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About the Author: Daniel