He said: "Why did Sam Bankman Fried get involved in crypto? For money and to push political narratives that is why he got into crypto...

'Get your money off exchanges', warns Bitboy Crypto after FTX scandal #2

 

He said: "Why did Sam Bankman Fried get involved in crypto? For money and to push political narratives that is why he got into crypto.

That is what he cares about and now we've got a guy who's on the Forbes list of billionaires. I think he's in the top 100 billionaires, and this is a guy that does not have the best interest of crypto at heart."

Armstrong told The Crypto Mile: "A lot of people have seen over the last few weeks as all this played out, that what started as a philosophical difference between myself and Sam, became a battle royale and ended in his exchange becoming insolvent.

"We were going after the fact that he was trying to push this Federal Bill License, and to destroy decentralisation in America. Now people can see that this is exactly what he was doing.

"When people found out that we blew the whistle on that and that we were correct all of a sudden his enemies started emailing me saying that there is a lot more to it than this, its not just the political stuff, there are problems with the company.

"So a week before 'ZC' tweeted that he was going to dump FTT, we were tweeting people saying, get your money off FTX, but trying to do it in a way that wouldn't crash the market."

Renewed appreciation for DeFi and decentralised exchanges after FTX implosion

According to Jason Choi of venture capital firm Tangent, FTX was allegedly started as an easy way to access capital for Alameda Research.

On Twitter, Choi claimed that every major decision FTX made was related to acquiring more leverage "via deceptive fundraises, financial engineering, and ultimately, outright fraud".

With user funds resting in the hands of centralised exchanges many investors see decentralised exchanges as the way forward for crypto trading.

Decentralised exchanges (DEXs) are a type of cryptocurrency exchange which allow for direct peer-to-peer crypto-transactions from one digital wallet to another, without the need for an intermediary, and with user funds staying in the wallet owned by that user.
Examples of decentralised exchanges are Uniswap on the Ethereum blockchain and PancakeSwap on the Binance smart chain.
DJ Qian, CEO of Chainge Finance, told Yahoo Finance UK: "I believe that decentralisation represents the future of crypto exchanges.

This direction is pretty clear at this point as some of the centralised exchanges that remain standing have slowly started taking steps towards exploring decentralisation.

For example, CZ the founder of the largest crypto exchange Binance has also come out in support of DeFi saying it's the way to go.

"The main reason why centralised exchanges are now seeing this general lack of trust is that people give up custody of their assets by using these platforms.

Similar to traditional banks: if a bank goes bankrupt, your money simply vanishes. You have no actual control over your own assets.

"The Celsius and FTX incidents are simply wake-up calls for the market to realise that entrusting an entity with your wealth poses a threat.

Because essentially you’re trusting a group of people to manage your assets. Whether they do it well or not, you don’t really know."