Elon Musk Discusses What Really Caused FTX’s Failure

Elon Musk, CEO of Tesla, replied via Twitter to a WSJ article that said the failure of FTX to the founder Sam Bankman-fans Fried’s losing faith in him.

According to a Reuters article, at least $1 billion in client assets vanished from the defunct cryptocurrency exchange FTX, causing investors to lose faith in SBF. But according to Tesla’s CEO, it was not the cause of its failure.

MicroStrategy chairman Michael Saylor and Ripple’s chief technology officer David Schwartz joined the chat. According to Ripple’s Chief Technology Officer (CTO), FTX was a ticking time bomb that failed just slightly quicker than it might have. Michael Saylor argues that the same reason why client funds disappeared from the exchange was why FTX collapsed.

The sudden demise of Sam Bankman-FTX Fried’s empire exposed a gaping hole in the company’s financial reporting and accounting.

The struggling cryptocurrency exchange FTX owes creditors more than $3 billion, according to a new disclosure issued over the weekend. Sam Bankman-Fried, the infamous founder of FTX, resigned as CEO earlier this month when the company filed for Chapter 11 bankruptcy.

Even as Bahamian authorities and FTX dispute in court filings, the new CEO of the insolvent cryptocurrency exchange said on Saturday that the company is trying to sell or reorganize its huge worldwide empire.

Also Read: New Global Crypto Regulations Advised By President Biden And G20 Leaders

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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