The founder of FTX, Sam Bankman-Fried who is under close regulatory investigation over claims of user money fraud, may have indirectly produced many Bitcoin maximalists, according to MicroStrategy (MSTR) Executive Chairman Michael Saylor.
Earlier, Saylor compared FTX CEO Sam Bankman-Fried to trader and stockbroker Jordan Belfort in an interview on Yahoo Finance Live.
“I mean, in fact, in a sense, SBF is like the Jordan Belfort of the crypto era. Instead of ‘The Wolf of Wall Street,’ they’ll make a movie called ‘The King of Crypto’.He was working to corrupt regulations and corrupt the political process. When you have actors that use corrupt counterfeit, stolen money in order to undermine the industry, it’s not good for anybody,” he said.
Few days after the FTX collapse, MicroStrategy stock fell 20% as investors feared after a sharp decline in Bitcoin. MicroStrategy revealed last month that it owned 130,000 bitcoins, with an average purchase price of about $30,639 per coin and a total cost of almost $3.98 billion.
Saylor also attributed the failure of the crypto exchange to the lack of transparency. On CNBC’s Squawk Box, A company’s cryptocurrency holdings should be “nobody else’s liability, Saylor said.
He stated that given the existing circumstances, additional regulatory control of FTX is unavoidable. However, he stressed that the sector as a whole could be harmed if regulators respond too harshly to FTX’s collapse.
Following the bankruptcy of troubled crypto exchange FTX, the price of bitcoin fell below $16,000 on Thursday.
BTC is currently trading just around $17,000 after experiencing a little uptick following the release of US consumer price index data on Thursday morning.
It is currently unknown how long the crypto market will take to recover from the crash brought on by FTX.
BTC is now down by almost 30% in relation to its 30-day highs. And most other major cryptocurrencies share the same situation.