Reeve Collins blames FTX founder for the exchange’s collapse.
Top cryptocurrency stakeholders are still commenting on the FTX debacle, which left almost a million users stranded, as they no longer have access to their funds.
Tether co-founder Reeve Collins is the latest crypto stakeholder to comment on the FTX fall. In a CNBC’s Squawk Box interview today, Collins said he and other cryptocurrency industry members were shocked by the collapse of FTX.
He noted that Sam Bankman-Fried was responsible for the exchange’s collapse.
“He is responsible because he was the CEO [of FTX]. He either committed gross negligence, absolute terrible management, or fraud. Either one at that level should end you up in jail,” Tether co-founder said.
"@SBF_FTX either committed gross negligence, absolutely terrible management, or fraud. Either one at that level should end you up in jail," says @Tether_to co-founder @Reeve_Collins. "People using these exchanges as a bank account is risky. Do not keep your coins on an exchange." pic.twitter.com/pjzr7r6OMi
— Squawk Box (@SquawkCNBC) December 2, 2022
Don’t Store Cryptos on Exchanges, Says Collins
Collins emphasized the risks involved when people store their crypto on exchanges.
“People using these exchanges as a bank account is risky. Do not keep your coins on an exchange,” he said.
According to the Tether co-founder, people storing their crypto assets on exchanges could be exposed to the same risks FTX users have suffered. Recall that a source disclosed to CNBC last month that SBF loaned out FTX deposits to Alameda Research, a fund launched by the former FTX CEO. Notably, SBF loaned billions of dollars of user funds to Alameda Research without the knowledge of investors, employees, and auditors.
SBF’s alleged mismanagement of FTX deposits contributed immensely to the exchange’s collapse. Last month, FTX filed for Chapter 11 bankruptcy protection, leaving many users with huge losses.
“Lots of people had all of their deposits, their entire crypto net worth on FTX, and they no longer have access to that,” Collins added.