US Markets
Monday, October 2nd, 2023 11:20 pm EDT
Key Points
- Billions of dollars belonging to FTX customers and investors are currently caught up in a bankruptcy process. Despite significant losses, some individuals haven’t lost faith in the cryptocurrency industry and are liquidating assets through alternative means to reinvest in crypto. One customer facing substantial losses stated, “I’m in quite a big hole right now” and anticipates the need to file for bankruptcy due to the FTX collapse.
Despite the multibillion-dollar collapse of cryptocurrency exchange FTX, many of its customers, insiders, and investors maintain faith in the cryptocurrency industry, as highlighted in a recent documentary. Here are the key takeaways from the article:
- Optimism Amid Losses: Despite not receiving any cryptocurrency back from FTX’s collapse, individuals like Evan Luthra, who lost $2 million, remain optimistic about the cryptocurrency industry and continue to invest.
- Bitcoin Bullishness: Luthra believes in the fundamental reasons for using Bitcoin, stating that his heavy loss on FTX hasn’t shaken his belief in Bitcoin’s long-term potential. He anticipates Bitcoin’s value surpassing $100,000 eventually.
- FTX’s Downfall: FTX, once a major cryptocurrency exchange, filed for bankruptcy following its rapid decline in 2022. Subsequently, it was revealed that $8.9 billion in customer assets had gone missing.
- Legal Proceedings: FTX’s founder and former CEO, Sam Bankman-Fried, faces seven criminal charges but has pleaded not guilty. Jury selection for his trial began in New York.
- Customer Losses: Customers like Jake Thacker, who lost hundreds of thousands of dollars on FTX, still encourage others to invest in cryptocurrencies but with caution and lessons learned from their experiences.
- Ad Campaign Attraction: Some customers, like Bhagamshi Kannegundla, were drawn to FTX through high-profile advertisements featuring celebrities. However, Kannegundla lost $174,000 (around 60% of his crypto portfolio) due to FTX’s collapse.
- Selling Bankruptcy Claims: Rather than waiting for the recovery process to distribute funds, Kannegundla sold his bankruptcy claim for a fraction of its value to reinvest in crypto.
- Continued Belief in Crypto: Despite FTX’s collapse, customers like Sunil Kavuri still believe in cryptocurrencies’ long-term prospects and the technology itself.
- Industry Believers: Brett Harrison, the former president of FTX’s U.S. business, is raising funds to start a new cryptocurrency-focused venture called Architect Financial Technologies. Anthony Scaramucci also remains bullish on the broader technologies surrounding crypto, known as Web 3.
These individuals emphasize their resilience and faith in the cryptocurrency industry despite the challenges posed by FTX’s downfall, and they see a promising future ahead for digital assets and related technologies.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/02/ftx-customers-who-lost-fortune-are-doubling-down-on-crypto-.html
