- Ken Griffin, founder of Citadel hedge fund and CEO, called the shocking collapse of FTX a travesty.
- He claimed that the event will cause distrust in financial markets and adversely affect wealth-building.
- Griffin also pushed for better coordination between US regulators to monitor the crypto industry.
Citadel’s billionaire founder and CEO Ken Griffin blasted the collapse of crypto exchange FTX. He called it a travesty and warned that investors could lose billions.
Griffin stated that FTX was “one of the absolute travesties” in the history and financial markets. He spoke on a live stream. Bloomberg New Economy ForumTuesday, 22 April 2009 in Singapore “People are going lose billions of dollar and that undermines confidence in all financial markets.”
Distressed FTX filed Chapter 11 bankruptcyAfter a week-long liquidity crisis, it finally emerged on Friday.
Griffin stated that the FTX’s collapse could have a significant impact on society as investors’ confidence would be shaken. “That’s really awful because the 20-something-year-olds to 40-year-olds who are so engaged in crypto, they’ve got to save for their retirement and if they don’t believe or trust in financial markets, this is a huge problem,” he said.
Griffin was weighing in on the FTX implosion as Citadel — which has over $50 billion in assets under management as of November — is reportedly setting up a crypto trading marketplace with a high-frequency trading firm, CoinDesk reportedIn June
Griffin also demanded better coordination between US regulators when overseeing crypto industry. He called it “preposterous”, that “they all dance about who owns who”. Griffin did not identify any agencies that were involved in the “turf warfare.”
“The bottom-line is that American investors really have suffered here, to the tune of hundreds and billions of dollars of market cap and crypto declines These figures have been consistent over the last two-years.He stated, “That strikes at the core essence of what investor protection all about is all about.”
