The Ledger: FTX’s downfall continues, crypto markets fear slump

FTX drama continues, Crypto.com’s boss talks big game as the crypto market collapses and Bitcoin investors hardly make any profit on their investment.

The week was dominated by news of cryptocurrency exchange FTX’s continued downfall. Once a landmark exchange and crypto firm, FTX has filed for bankruptcy and dashed consumer hopes that the rumors of its misuse of user funds were exaggerated.

FTX’s former chief executive officer Sam Bankman-Fried and celebrity backers of the cryptocurrency exchange have been served with a class-action lawsuit this week. This is not the worst part of the FTX saga, as the exchange urged consumers to delete their apps, because they were a virus threat.

With oversight on cryptocurrencies going up, California’s attorney office has launched a new website dedicated to helping consumers understand the risks surrounding crypto investments. The website focuses on helping consumers identify scams and fraudulent investment offers.

Elsewhere in the UK, Ripple Labs has offered its own take of what any future regulatory framework that focuses on cryptocurrencies should include. Ripple Labs is has outlined specific issues that lawmakers and regulators may want to consider before formalizing any crypto laws.

A report by the Bank for International Settlements (BIS) has shown that the majority of investors, or some 83% of people who invested in the cryptocurrency in the period 2015-2022 have actually ended up losing money on their investment. This is as shocking as it is insightful about the nature of cryptocurrency investment.

Football legend Cristiano Ronaldo is launching his own dedicated non-fungible token (NFT) collection. The collection will be available exclusively on Binance, a prominent cryptocurrency exchange, which recently said that FTX had committed “the ultimate sin”, referring to the rival’s misuse of consumer funds.

Another prominent football player, Lionel Messi signed a brand ambassador agreement with Sorare. Speaking of NFTs, Malta announced this week that it's exploring a regulatory regime for NFTs.

Despite market tremors in the cryptocurrency industry, the Australian Football League (AFL) remains firmly committed to its ongoing partnership with Crypto.com, another exchange that saw its volumes fall rapidly because of the overall lull in the markets.

Crypto.com’s boss, Kris Marszalek, assured that despite the slowdown there is no need to fear further collapse, and least of all his platform’s.

The exchange sent $400m worth of cryptocurrency in the form of 320,000 Ethereum to another cryptocurrency exchange, Gate.io, but the funds were returned, and the company was again in the news this week after it became clear that it holds 20% of its reserves in Shiba Inu, a meme token of questionable value.

Looking for your next crypto casino? Check out: Bitcasino, 1xBit or FortuneJack.

Written by Alex

Reporter

Alex is a well-rounded crypto writer who focuses on general market and legal developments. His main interest lies in how crypto gaming can become a more permanent part of the gaming landscape and how blockchain holds benefits to players they are not even aware of.

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