Galaxy Digital: The cryptocurrency market is changing! The environment that allowed the rise of FTX and SBF disappeared

Financial services firm Galaxy Digital noted in a research report released on Friday that the cryptocurrency market has changed since the exchange FTX went bankrupt in November 2022, The market conditions that allowed FTX and its founder SBF to rise no longer exist. According to the report, FTX’s bankruptcy had a profound impact on the cryptocurrency market. FTX is a popular cryptocurrency exchange founded and operated by SBF. However, due to a series of internal management and operational issues, FTX declared bankruptcy in November 2022. Report highlights the impact of FTX’s bankruptcy on

Galaxy Digital: There won’t be a second SBF

Galaxy Digital analyst Lucas Tcheyan noted that unlike FTX, the emerging exchange now allows users to Host their crypto assets to ensure users have direct control over their cryptocurrencies. By ensuring users maintain direct control over their crypto assets, exchanges address the lack of custody and transparency issues that led to FTX’s collapse. At the same time, exchanges that do not provide self-custody services have also begun to issue reserve certificates as evidence that they protect the security of user assets. This way, users can more safely rely on exchanges to protect their assets.

The listing of Bitcoin spot ETF has changed the market investment environment. U.S. users can now inject funds into the cryptocurrency market from compliance channels just like buying stocks: the adoption of Bitcoin ETF is an important step , U.S. users can finally use regulated products with the same protections they have for investing in stocks and further prevent them from turning to unregulated offshore exchanges.

SBF was sentenced to 25 years in prison

FTX created SBF. He was charged with seven counts of wire fraud. On March 28, he was sentenced to 25 years in prison by the U.S. Federal District Court. He did not receive more than With assets of US$11 billion, it ultimately paid a heavy price for the harm it caused to investors.

SBF is still defending its actions and said its defense team plans to appeal later this year on the grounds that some of the trial testimony "grossly misrepresented what actually happened" and that his defense team "Not allowed to present key evidence or provide important witnesses."

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