- SBF, the CEO of FTX, faults the Federal Reserve for the crypto crash.
- Some investors side with SBF and place the blame on the Feds.
- Others point fingers at SBF for attacking Celsius.
Sam Bankman-Fried, better known as SBF, the CEO of FTX, blames the Federal Reserve for the abysmal crypto downturn. “The core driver of this has been the Fed,” said the tech entrepreneur to NPR.
As the crypto world heads face-first into a massive plummet, there seems to be an ongoing blame game. Furthermore, a major chunk of the crypto world believes that the Federal Reserve is responsible for the downfall. Notably, the Fed is raising interest rates aggressively to fight inflation. “That [raising interests⦎ has led to a recalibration of expectations of risk,” SBF was reported saying.
BREAKING: FTX & Sam allegedly bailed out massive crypto companies to limit this crypto crash.— Satoshi Stacker (@StackerSatoshi) June 19, 2022
However, in a surprising twist, there’s another category of people who believe that SBF himself is responsible for this situation, saying that FTX was part of the consortium that attacked Celsius. However, SBF replied to these allegations, stating that they only wanted to help those in the ecosystem.
Lol this is definitely false. We want to help those we can in the ecosystem, and have no interest in hurting them — that just hurts us and the whole ecosystem.
These remarks come at the worst possible time in the crypto sphere. Currently, Bitcoin, the most valued crypto has fallen as low as $17k. Bitcoin had reached its all-time high of $69k just last November.
In 2021 crypto was performing well, attracting investors from all over with its lucrative investing options. FTX even had a super bowl ad starring comedian Larry David that turned out to be a major hit.
However, in just a few months, many of these young investors who took to crypto became penniless. Earlier last week, crypto lender Babel suspended redemptions and withdrawals of cryptocurrency because of unusual liquidity pressures. Babel’s suspensions directly followed Celsius Network’s freezing of withdrawals earlier the same week. Meanwhile, Crypto hedge fund 3AC is also going through its own crisis.