Home » Markets » FTX's smallest investors may be biggest losers of crypto collapse
FTX's smallest investors may be biggest losers of crypto collapse
Crypto industry has been full of Ponzi schemes: Palantir co-founder
Crypto and Web3 have unrealized potential, but the lack of regulation over the years has led to speculative bubbles and Ponzi schemes, Joe Lonsdale says.
Following the collapse of FTX, the cryptocurrency exchange once valued at $32 billion, much of the attention has focused on the now-bankrupt firm's most prominent investors and celebrity endorsers.
But with more than 1 million creditors, many young people and mom-and-pop investors will be left holding the bag.
A bankruptcy court hearing scheduled for Friday at 10 a.m. EST could shed more light on the full spectrum of those who lost money due to FTX's implosion. The hearing will consider a motion to release a complete list of FTX's creditors, including their names and email addresses.
Former Federal Deposit Insurance Corporation (FDIC) chair Sheila Bair recently told Fox Business the real tragedy of the FTX collapse is there are "potentially a million much smaller investors, and proportionately, they're the ones that are really going to get hurt."
FTX FRAUD WILL MAKE ‘ENRON LOOK LIKE PEANUTS’: FORMER US ATTORNEY