Altcoins

Just In: Blackrock CEO Larry Fink Says FTX Failed Due To FTT Token

FTX News: Asset manager Blackrock is one of the big names associated with investments in bankrupt crypto exchange FTX. In a latest, Larry Fink, the chairman and CEO of BlackRock, made some interesting comments on the Sam Bankman-Fried crypto empire collapse. He said Blackrock had a $24 million investment in FTX, which filed for bankruptcy earlier in November. The crypto exchange faced a significant liquidity crunch linked to alleged diversion of user funds to other companies owned by Sam Bankman-Fried.

“FTX failed because it created its own token.”

Also Read: FTX US Users Will Get 100% Of Their Money Back, Says SBF

These comments from the Blackrock CEO assume huge prominence as the asset manager is the largest such company in the world. Earlier in August, the company launched a spot Bitcoin private trust. At the time, Blackrock said it saw substantial interest from some institutional clients for crypto integration.

Will SBF Go To Jail?

As FTX steers through the bankruptcy proceedings, ongoing investigations are focusing on whether the user funds are mishandled. Meanwhile, a section of the crypto community is wondering as to how SBF is roaming around freely after allegedly committing fraud. Many investors are wondering when SBF will be arrested. The U.S Securities and Exchanges Commission (SEC) is looking into potential diversion of funds from FTX US users.

   

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