Sam Bankman-Fried, the CEO of FTX cryptocurrency derivatives exchange, recently admitted that his firm “sure should have” done more to protect customers’ money. This confession comes as a result of an incident when on May 11th, a supposedly ‘rogue’ trader made huge losses of around $500 million dollars for the funds managed by the firm for their customers.
Bankman-Fried later apologized for the losses and admitted that they “should have done more” to ensure customer funds were adequately protected from this kind of incident. He firmly stated that they have since taken steps to ensure similar incidents do not occur in the future. These steps include more stringent risk management practices, like updating the risk profiles at regular intervals and periodically monitoring the position sizes of the funds.
In addition, the company has also introduced more stringent asset management protocols to ensure the safety of customers’ funds. Bankman-Fried further points out that despite the incident, the funds managed by FTX remain safe and he assurances customers this sort of incident will not happen again.
