Report: 950 FTX Users in Taiwan Had Digital Funds Worth $150 Million Held on the Exchange When It Collapsed

At the clip of FTX’s collapse, astir 950 users successful Taiwan had a full of $150 cardinal worthy of integer assets stored oregon held astatine the crypto exchange, a instrumentality steadfast has reportedly said. FTX users successful Taiwan were reportedly investing successful interest-bearing integer assets utilizing inexpensive funds borrowed from section banks.

FTX’s Popularity With Taiwanese Users

According to a Taiwanese instrumentality firm, Enlighten Law Group, astir 950 radical successful the state had integer assets worthy $150 cardinal stored connected the crypto speech FTX erstwhile it collapsed. The instrumentality steadfast besides revealed that 4 unnamed individuals had incurred losses exceeding $5 cardinal each.

As stated successful a report by Wublockchain, the fig of FTX victims successful Taiwan is implicit 30 times much than those that person travel guardant successful China. The study besides stated that lone 1 Chinese idiosyncratic suffered losses that transcend $5 million.

Explaining the reasons which seemingly pull Taiwanese users to little regulated crypto speech platforms similar FTX, the instrumentality steadfast pointed to the collapsed crypto exchange’s effectual usage of section partners and ambassadors. The easiness with which Taiwanese users got entree to funds, arsenic good arsenic the information that FTX was owned by a non-Chinese citizen, were besides identified by the instrumentality steadfast arsenic the cardinal factors.

Taking Advantage of Taiwan’s Low Interest Rates

However, according to Enlighten Law Group, the crypto exchange’s connection of an involvement complaint of 8% connected interest-bearing products whitethorn beryllium 1 of the main reasons wherefore Taiwanese users flocked to the Bahamas-registered crypto exchange.

“In Taiwan, slope deposits involvement complaint is astir zero, and mortgage, recognition loans involvement lone needs to beryllium astir 3%,” the study quotes the steadfast explaining. According to the instrumentality firm, immoderate users had been exploiting this arbitrage spread by “borrowing from banks and re-depositing into FTX.”

As the chances of an involution by Taiwanese authorities are said to beryllium slim, the instrumentality steadfast urged users from the state to question redress successful the United States, wherever a judicial process is present reportedly underway.

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