Collapsed crypto exchange FTX suffered from a series of “familiar” failings that have also plagued the conventional financial sector throughout history, Jon Cunliffe said yesterday (November 21).
The Bank of England deputy governor said many of the problems that ultimately brought FTX down are controlled by regulation in conventional finance. He argued crypto now needs to be subjected to similar rules.
FTX, which had previously been valued at $32 billion, suffered from “fundamental issues” around its governance, Cunliffe said. For the broader financial sector, regulation seeks to control the links between firms as well as the connections within a firm. In both cases, FTX operated as a highly connected web, without…
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