Ripple CTO Says One Important Lesson From FTX Meltdown ‘Will Not Be Learned’

A Ripple enforcement says determination is 1 important acquisition from the meltdown of crypto speech FTX that helium “can accidental with full assurance volition not beryllium learned.” The enforcement added: “Regulation that punishes aft the information won’t drawback it. Investor owed diligence won’t either.”

One Lesson From FTX Collapse That Won’t Be Learned

The CTO of Ripple Labs, David Schwartz, shared his thoughts connected the illness of cryptocurrency speech FTX successful a bid of tweets Monday. FTX filed for Chapter 11 bankruptcy connected Nov. 11.

While noting that respective lessons should beryllium learned from the FTX fiasco, the Ripple enforcement said:

There’s 1 important acquisition that is truly beauteous evident successful retrospect and that I tin accidental with full assurance volition not beryllium learned.

He explained: “If you clasp billions of dollars of different people’s wealth for indefinite clip periods, the temptation to speculate with those funds is irresistible if determination aren’t verifiable checks that marque specified risk-taking virtually impossible, thing other volition beryllium sufficient.”

Schwartz emphasized:

Regulation that punishes aft the information won’t drawback it. Investor owed diligence won’t either. Of course, galore radical volition accidental that it could be, and apt is, happening, but they’ll beryllium shouted down by accusations of sowing FUD oregon upsetting a strategy that is making radical money.

“This benignant of happening volition ever hap unless it cannot happen,” helium stressed. “The temptation is irresistible. That is 1 of the astir important lessons of FTX. But astir radical volition actively take not to larn this acquisition due to the fact that of, among different things, the elephant successful the room.”

FTX is presently being investigated by a fig of authorities worldwide. In the U.S., the Department of Justice (DOJ), the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC) are investigating the speech for allegedly mishandling lawsuit funds, among different charges. Turkey‘s fiscal quality portion has besides launched an probe into FTX and the Bahamas securities regulator has been trying to prehend FTX’s cryptocurrencies.

Ripple Labs is presently engaged successful a lengthy suit with the SEC. The securities regulator sued the company, its CEO Brad Garlinghouse, and co-founder Chris Larsen implicit the merchantability of XRP, claiming that the crypto token is simply a security. Garlinghouse expects an reply successful the first fractional of 2023. The Ripple CEO precocious said that the crypto industry volition beryllium stronger aft the FTX fiasco if we support focusing connected transparency and trust.

What bash you deliberation astir the comments by the Ripple CTO? Let america cognize successful the comments conception below.

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