{"id":1779654,"date":"2022-12-19T06:06:14","date_gmt":"2022-12-19T11:06:14","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1779654"},"modified":"2022-12-19T06:18:42","modified_gmt":"2022-12-19T11:18:42","slug":"small-investors-will-likely-be-the-biggest-losers-of-ftx-collapse","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/small-investors-will-likely-be-the-biggest-losers-of-ftx-collapse\/","title":{"rendered":"Small Investors Will Likely Be the Biggest Losers of FTX Collapse"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsmall-investors-will-likely-be-the-biggest-losers-of-ftx-collapse%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1779654&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<div class=\"featured featured-video video-ct\">\n<div class=\"contain\">\n<div class=\"info\">\n<div class=\"caption\">\n<p>Crypto and Web3 have unrealized potential, but the lack of regulation over the years has led to speculative bubbles and Ponzi schemes, Joe Lonsdale says.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Following the collapse of FTX, the cryptocurrency exchange once valued at $32 billion, much of the attention has focused on the now-bankrupt firm&#8217;s most prominent investors and celebrity endorsers.\u00a0<\/p>\n<p>But with more than 1 million creditors, many young people and mom-and-pop investors will be left holding the bag.<\/p>\n<p>A bankruptcy court hearing scheduled for Friday at 10 a.m. EST could shed more light on the full spectrum of those who lost money due to FTX&#8217;s implosion. The hearing will consider a motion to release a complete list of FTX&#8217;s creditors, including their names and email addresses.<\/p>\n<p>Former Federal Deposit Insurance Corporation (FDIC) chair Sheila Bair recently told <a href=\"https:\/\/www.foxbusiness.com\/\" target=\"_blank\" rel=\"noopener\">Fox Business<\/a> the real tragedy of the FTX collapse is there are &#8220;potentially a million much smaller investors, and proportionately, they&#8217;re the ones that are really going to get hurt.&#8221;<\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/media\/ftx-fraud-scandal-will-make-enron-look-like-peanuts\" target=\"_blank\" rel=\"noopener\"><strong>FTX FRAUD WILL MAKE \u2018ENRON LOOK LIKE PEANUTS\u2019: FORMER US ATTORNEY<\/strong><\/a><\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2022\/11\/931\/523\/FTX-Bankruptcy.jpg?ve=1&#038;tl=1\" alt=\"FTX logo seen in Miami\"   style=\"display:none\"><\/div>\n<div class=\"caption\">\n<p><span>The logo of FTX is seen at the entrance of the FTX Arena in Miami Nov. 12, 2022.<\/span><span> (REUTERS\/Marco Bello\/File Photo \/ Reuters Photos)<\/span><\/p>\n<\/div>\n<\/div>\n<p>Bair noted that FTX and the crypto industry at large have <a href=\"https:\/\/www.foxbusiness.com\/markets\/ftxs-small-investors-biggest-losers-fallout-fmr-fdic-chair-bair\" target=\"_blank\" rel=\"noopener\">marketed heavily to young people<\/a> and said it &#8220;saddens&#8221; her that so many who bought into the company&#8217;s allure are unlikely to recover their investments.<\/p>\n<p>She suggested that, to prevent a similar future collapse, crypto exchanges should be required to show proof of reserves and that some supervisory enforcement should be put in place.<\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/economy\/sam-bankman-fried-denied-bail-bahamas-ordered-held-until-feb-alleged-ftx-fraud-scheme\" target=\"_blank\" rel=\"noopener\"><strong>SAM BANKMAN-FRIED DENIED BAIL IN BAHAMAS, ORDERED HELD UNTIL FEB. 8 IN ALLEGED CRYPTO FRAUD SCHEME<\/strong><\/a><\/p>\n<p>Current FTX CEO John J. Ray III, a corporate restructuring expert who handled the bankruptcy of energy trader Enron, <a href=\"https:\/\/www.foxbusiness.com\/markets\/ftx-ceo-blames-grossly-inexperienced-owners-collapse-says-customer-money-funded-risky-alameda-trades\" target=\"_blank\" rel=\"noopener\">testified before the House Financial Services Committee<\/a> Tuesday and indicated that customers who put their money into FTX and its affiliates shouldn&#8217;t hold out hope for a full recovery of their investments.<\/p>\n<p>&#8220;We will never get all these assets back,&#8221; Ray said bluntly.<\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2022\/12\/931\/523\/MTJ03601.jpg?ve=1&#038;tl=1\" alt=\"SBF is led into a car\" \/><\/div>\n<div class=\"caption\">\n<p><span>Samuel Bankman-Fried leaves court in Nassau, Bahamas, Tuesday.\u00a0<\/span><span> (Mega for Fox News Digital \/ Fox News)<\/span><\/p>\n<\/div>\n<\/div>\n<p>In its initial filings during the early stages of its bankruptcy proceedings, FTX indicated it owed its <a href=\"https:\/\/www.foxbusiness.com\/technology\/cryptocurrency-exchange-ftx-owes-more-than-3-billion-creditors\" target=\"_blank\" rel=\"noopener\">50 biggest unsecured creditors<\/a> over $3 billion. At that time, the firm could identify 100,000 creditors that it was aware of, most of whom were customers of FTX.\u00a0<\/p>\n<p>However, because the bankruptcy of FTX and its more than 130 affiliated entities may also affect former customers and others, the total number of creditors may ultimately rise above 1 million.<\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/markets\/where-did-money-go-ftx-crypto-collapse\" target=\"_blank\" rel=\"noopener\"><strong>WHERE DID THE MONEY GO IN FTX CRYPTO COLLAPSE?<\/strong><\/a><\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2022\/11\/931\/523\/bankman-fried.jpg?ve=1&#038;tl=1\" alt=\"FTX CEO Sam Bankman-Fried\" \/><\/div>\n<div class=\"caption\">\n<p><span>Sam Bankman-Fried, founder and former CEO of FTX Cryptocurrency Derivatives Exchange, speaks during an interview on an episode of Bloomberg Wealth with David Rubenstein in New York Aug 17, 2022.\u00a0<\/span><span> (Jeenah Moon\/Bloomberg via Getty Images \/ Getty Images)<\/span><\/p>\n<\/div>\n<\/div>\n<p>FTX founder and former CEO Sam Bankman-Fried was <a href=\"https:\/\/www.foxbusiness.com\/politics\/ftx-founder-sam-bankman-fried-arrested-bahamas-us-expected-request-extradition-authorities-say\" target=\"_blank\" rel=\"noopener\">arrested by authorities in the Bahamas<\/a> on Monday and is expected to be extradited at a later date.\u00a0<\/p>\n<p>Federal prosecutors announced Tuesday that <a href=\"https:\/\/www.foxbusiness.com\/markets\/sam-bankman-fried-caroline-ellison-retain-high-powered-white-collar-lawyers-amid-ftx-probe\" target=\"_blank\" rel=\"noopener\">Bankman-Fried was indicted on eight charges<\/a> in the U.S. that carry a combined maximum sentence of 115 years in prison. The charges against him include wire fraud on customers, plus a related conspiracy charge; wire fraud on lenders, plus a conspiracy charge; conspiracies to commit commodities fraud, securities fraud, money laundering and violate campaign finance laws.<\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/apps-products\" target=\"_blank\" rel=\"noopener\"><strong>GET FOX BUSINESS ON THE GO BY CLICKING HERE<\/strong><\/a><\/p>\n<p>U.S. Attorney for the Southern District of New York Damian Williams said the Bankman-Fried case, which has drawn comparisons to <a href=\"https:\/\/www.foxbusiness.com\/markets\/ftx-sam-bankman-fried-bigger-madoff-enron\" target=\"_blank\" rel=\"noopener\"><u>Bernie Madoff&#8217;s Ponzi scheme and the Enron scandal<\/u><\/a>, will go down as &#8220;one of the biggest frauds in American history.&#8221;<\/p>\n<p><i>Fox Business&#8217; Breck Dumas contributed to this story.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crypto and Web3 have unrealized potential, but the lack of regulation over the years has led to speculative bubbles and Ponzi schemes, Joe Lonsdale says. Following the<\/p>\n","protected":false},"author":1,"featured_media":1779657,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[8710,5458,7385,7334,5311,5872,3819],"class_list":["post-1779654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-biggest","tag-bongino","tag-collapse","tag-ftx","tag-investors","tag-losers","tag-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1779654","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1779654"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1779654\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1779657"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1779654"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1779654"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1779654"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}