Home News Elon Musk commented on the FTX failure!

Elon Musk commented on the FTX failure!

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FTX, Credit: CryptoGo
FTX, Credit: CryptoGo

Tesla CEO reacted to a tweet

Tesla CEO Elon Musk reacted in a tweet to a WSJ article that claimed that the FTX bankruptcy was caused by the founder Sam Bankman-fans Fried’s losing faith in him. Given the collapse’s conditions, which included at least $1 billion in client assets vanishing from the defunct crypto exchange, according to a Reuters article, they undoubtedly lost faith in SBF. The Tesla CEO, though, doesn’t think that’s why it failed.

Participants in the cryptocurrency sector have accused Bankman-Fried of embezzlement and egregious money management mistakes. According to the analysis performed by the 5minutecoins team, his exchange used consumer cash to carry out dangerous deals.

 FTX’s finances had loopholes?

FTX, Credit: FinTech Futures

 FTX’s finances had loopholes? The abrupt demise of Sam Bankman Fried’s empire exposed a flaw in the organization’s accounting and financial reporting. A statement published over the weekend claims that the insolvent cryptocurrency exchange FTX owes its creditors more than $3 billion. The discredited founder of FTX, Sam Bankman-Fried, resigned from his position as CEO earlier in the month when the company filed for Chapter 11 bankruptcy.

John Ray III, the newly appointed FTX CEO, stated simply that he had never witnessed such a total breakdown of corporate controls and such a complete lack of reliable financial information as occurred in the FTX case in his 40 years of legal and structuring expertise.

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