This has been a tumultuous year for cryptocurrency, topped off in spectacular fashion by the rapid demise of FTX.
But when the dust settles, what will the crypto sector look like in 2023?
It’s fair to say that, in a market loaded with uncertainty and risk, one thing we can be sure of is ‘buyer beware’ will remain the order of the day.
The US Securities & Exchange Commission has charged FTX founder Samuel Bankman-Fried with “orchestrating a scheme to defraud equity investors in FTX Trading Ltd (FTX), the crypto trading platform. Investigations as to other securities law violations and into other entities and persons relating to the alleged misconduct are ongoing.”
Gary Gensler, chair of the SEC, said: “We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto.
“The alleged fraud committed by Mr Bankman-Fried is a clarion call to crypto platforms that they need to come into compliance with our laws… To those platforms that don’t comply with our securities laws, the SEC’s Enforcement Division is ready to take action.”
Laith Khalaf, head of investment analysis at AJ Bell, commented: “Crypto buyers should be willing to accept a total wipeout on their investment as a result of the highly speculative nature of digital coins, but it should not be because the exchange they used to make the purchase goes bust, taking their cash…
