In the wake of the FTX bankruptcy, multiple crypto firms, including one of the largest crypto lending businesses, have suspended withdrawals, leaving customers without access to their funds.
According to YouTuber Matt Kohrs, the events that unfolded over the last week have caused “dismay” in the retail trading community as numerous customers have come forward saying how much they’ve lost in the FTX collapse. Some say they may not be able to recoup those losses.
For crypto investors, there is a “very difficult lesson” to be learned from it all, he said.
“These exchanges or yield-bearing products… it’s all dangerous,” Kohrs told Yahoo Finance Live (video above). “Fortunately, because we kind of touched the oven earlier on in the year, we learned that stark lesson of the person you should trust in the world of crypto is yourself. And that’s why for months now, the key thing has been self-custody and even a focus on cold wallets.” (Cold wallets store data offline, unlike hot crypto wallets, which are connected to the internet.)
Headquartered in the Bahamas, FTX was one of the world’s largest exchanges. The company founded by Sam Bankman-Fried processed a vast amount of crypto trades globally, along with its competitor Binance, and spent millions of dollars coaxing American legislators to create crypto-friendly…
