FTX, one of the largest cryptocurrency exchanges in the world, filed for bankruptcy last month. The collapse of the exchange caused millions of dollars to be wiped from the cryptocurrency market and had a contagion effect on affiliated firms.
Former CEO Sam Bankman-Fried was arrested in the Bahamas last week and charged with money laundering and other financial crimes. He has now been extradited to the United States, where he will appear before a judge as soon as possible.
Brad Garlinghouse, the CEO of Ripple, has commented on the FTX case. He said:
“The world is (appropriately) outraged by SBF and FTX’s fraud, but when Wells Fargo mismanages billions in customer funds as well, it’s barely a blip on the radar. Food for thought….”
Garlinghouse believes the US Judiciary is biased in dealing with companies associated with financial crimes. He claims they are more reserved when it comes to traditional financial institutions, as in the case of Wells Fargo.
Wells Fargo, one of the largest banks in America, has faced numerous customer complaints from 2011 to 2020, as reported by the US Consumer Financial Protection Bureau (CFBC)
The bank had wrongly imposed certain fees on customers’ accounts, incorrectly repossessed customers’ vehicles, and denied mortgage loans to qualified borrowers. The financial institution had just been ordered by the CFBC to pay $3.7 billion in penalties for misconduct after years had gone by.
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