Investors are being affected significantly by the sudden collapse of the cryptocurrency market and, in particular, a company connected to a significant crypto exchange. FTX is among the biggest cryptocurrency exchanges in the country.
It is now declaring bankruptcy and was recently valued at $32 billion. At this time, investors are unable to withdraw any funds from the site. Both large and small investors are suffering from FTX’s collapse.
Businessman and cryptocurrency investor Evan Luthra lost $2 million as a result of the entire FTX debacle. “I made the wrong decision of trusting somebody like FTX and giving them my bitcoin, giving them my crypto so that they could give me ‘IOUs.’ And then they went under, and they scammed us. So a very big lesson for me, a very big lesson for everybody,” Luthra said on “Varney & Co.,” Wednesday.
Luthra also said that his continued investment in bitcoin and the crypto sector has transformed him into a “more fundamental” investor, despite the hesitation of many investors to return to the world of cryptocurrencies.
He said that Sam Bankman-Fried has consistently lied about what he has been doing.This is not an overnight failure and this is not a business that didn’t work out according to Luthra. Instead this was them defrauding people, he added.
“This is the FTX going on stage and going publicly and tweeting that funds are safe and secure. They were never secure. They were using it to buy houses. I don’t have any auditing records. I could only test on what the market shows. The market made you believe that it’s a company you can trust,” he added.
The businessman continued to express his faith in the basic principles of cryptocurrency, saying that the collapse of FTX was caused by “an individual” who was “very bad businessman, but very experienced con man.”