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- On November 12, a Canadian programmer and co-founder of Ethereum, Vitalik Buterin scolded Sam Bankman-Fried, the chief executive officer of FTX when he was asked about the bankruptcy of FTX.
Vitalik had a word with Sam at the LaBitConf conference in Buenos Aires, Argentina in which Buterin alleged that the major reason for the downfall of FTX was that it was following a centralized nature.
“In 2022, we have witnessed a large number of events that break because they have a structure which is technically bad,” Buterin explained when questioned about the downfall of FTX and other similar crypto firms in 2022.
At a certain time, FTX was among the most popular digital asset exchanges over the world, but it imploded this week after it appeared that its Chief Executive Officer owner, Sam Bankman-Fried inside crypto circles, utilized customer deposits to make insecure bets, setting billions of dollars up in fire.
On November 12, Sam Bankman-Fried who was among the richest man in crypto for a certain period of time filed for bankruptcy and witnessed his net worth to slip from $16 billion to zero after the downfall of his platform.
“There is belief in a man that revolves around, carries a suit, and gives himself a title like ‘Bankman,’ Buterin revealed today, highlighting the advertisement of the crypto celeb bashed around San Fransisco.
Buterin highlighted that people were more indulged in the marketing of FTX and the “indivisualistic style” identical to that of “1930s dictators” which is totally different from every character of crypto is a project that attempts to be decentralized.”
The report
As per the reports of the coin republic, FTX founder and CEO SBF asked for help to raise emergency funds to cover an $8 billion shortfall. The sources states, he highlighted several ways to help solve FTX’s‘ financial woes’.
As per the information, it is found that they are willing to liquidate its $3 to $4 billion of liquidity in order to recover the loss. Until Wednesday morning, the FTX was the world’s fourth largest crypto exchange by volume.
Sam Bankman Fried had been involved in many political campaigns and was also a sole savior to many crypto companies. So, it is shocking for regulators and politicians too to notice the crypto exchange fall. It is unbelievable to see things fall out of control from their hands. Also, the FTX was one to acquire assets of bankrupt crypto companies such as Voyager Digital and offer loans to the crypto lending platform, BlockFi.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
