The fall of FTX opened the requirement for fresh reforms aimed at protecting investor funds against manipulation and misdirections. Vitalik Buterin believes what FTX did was a bigger fraud when compared to the infamous Terra collapses.
Vitalik believed that people running LUNA ecosystems looked sketchy and did not try too hard to whitewash themselves enough to change investor perspectives. On the other hand, Buterin said that FTX was the opposite and did fullon compliance virtue signaling.
While virtue signaling relates to the practice of publicly demonstrating one’s good character, Binance CEO Changpeng Zhao showed disappointment in FTX for misappropriating user funds, which according to him, has set the industry a few years back in terms of regulatory acceptance and mainstream adoption.
Considering the negative impact caused by FTX’s wrongdoing, Buterin spoke against FTX CEO . However, given their length of acquaintance, Buterin believed that Sam, as a person, deserved love and support, adding that I hope he has friends and family that can give it to him.
However, not everybody was willing to cut some slack for the troubled entrepreneur. Dogecoin creator Billy Markus believed that SBF also deserved some jail time a point of view resonating with small investors who recently lost their funds.
To avoid an FTX-like situation from happening, the crypto community has proactively begun cross-checking the cold storage funds and has started demanding clarifications for the on-chain anomalies.
