The Chief Executive Officer of the Cryptocurrency Exchange Kraken Discusses the Impact the Failure of FTX Will Have on the Industry
In a series of tweets published on Thursday, Jesse Powell, the Chief Executive Officer of the cryptocurrency exchange Kraken, expressed his thoughts on the failure of FTX. On Friday, FTX submitted their bankruptcy petition under Chapter 11.

He started by saying, "This is a big setback." "Because of our honest and trusting character, con artists can easily take advantage of us... This is not about setting ambitious goals and failing to meet them. "This is about recklessness, greed, self-interest, hubris, and sociopathic behavior that causes a person to endanger all of the hard-won accomplishments that this business has made over the course of a decade, for the sake of their own personal gain."

Powell pointed up several warning signs regarding FTX. Powell noted that the first red flag is "appearing like you know everything after showing up to the war 8 years late." He was referring to the former CEO of FTX, Sam Bankman-Fried, who resigned after the bankruptcy filing. Spending "9 figs" to buy political favor is the second red flag that should be raised. The third is when a person is "overeager to impress DC," and the fourth is when a person makes "big ego purchases, like nine-figure sports deals." The following behavior that should raise red flags is searching out puff pieces and trying to become a "media darling." According to his explanation, there is also the practice of "EA [Effective Altruism] virtue signaling," in addition to the FTT token.

Powell expressed the following opinion: "We allow clowns to ride under our banner while they sell us out for their personal interests." They have not earned the right to speak for us, despite the fact that we give them that power. When they detonate themselves, our home, our reputation, and our people are the ones that take the brunt of the damage. Executives from Kraken wished to emphasize the following:

The amount of damage is significant here. An collapse of this magnitude at an exchange is a gift to those people throughout the world who dislike bitcoin... To undo this will need a significant amount of time and effort on our part.

"Venture capitalists, the media, and the so-called 'experts' failed," he added, adding that individuals "torched their own reputations" by lending their support to persons, initiatives, and businesses on which they had not conducted the appropriate amount of research. "Retail looks to you, assuming that you have completed your duties as effectively as possible. It is your responsibility to offer constructive criticism while reserving unnecessary praise, as he pointed out.

"Trust no one. Verify," the boss of the Kraken said, going on to elaborate as follows:

Legislators and regulators in the United States are also subject to some degree of responsibility. You caused this company to move its operations overseas because you refused to devise a system that could be implemented so that these services could be provided in a regulated environment. Incorrectly, enforcement efforts are concentrated on convenient good actors on-shore.