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FTX Customers Doubling Down on Crypto Investments to Compensate Loss

A new documentary on CNBC revealed that FTX customers who lost millions are brave enough to double down on crypto to compensate for their losses.

Some FTX customers are brave enough to invest in crypto again to recoup losses.
Creator: Sergei Elagin Credit: Shutterstock Copyright: 2021 Sergei Elagin/Shutterstock.

Despite the catastrophic downfall of FTX, its customers who suffered substantial losses remain optimistic about the future of the crypto industry. These customers, insiders, and investors have shared their stories with CNBC, expressing their continued belief in cryptocurrency investments.


What are former FTX customers thinking?


One of these people is Evan Luthra, an app developer, entrepreneur, and angel investor, who faced a $2 million loss due to FTX's collapse. Nevertheless, Luthra remains unwavering in his confidence in cryptocurrencies.


He emphasizes that the mistake was not in Bitcoin or crypto itself, stating, "The fundamental reason why we buy Bitcoin, why we use Bitcoin has not changed." He firmly believes in the long-term potential of Bitcoin, despite its current market fluctuations. "I know it's going to end up at over $100,000 sooner or later anyways, so for me, it's a great buy," Luthra adds, highlighting his conviction in Bitcoin's eventual resurgence.


Jake Thacker, another ex-FTX customer, finds himself in dire financial straits after losing hundreds of thousands of dollars. He acknowledges his uphill battle but still encourages others to invest in crypto, albeit with a cautionary note: "Here's what I learned, don't make the same mistakes I did."


Bhagamshi Kannegundla, who initially trusted FTX due to its high-profile endorsements, lost a significant portion of his crypto portfolio. Kannegundla sold his bankruptcy claim for a fraction of its value to access some cash quickly. His hope is to reinvest in crypto in the coming years, driven by a belief in the technology's potential.


Sunil Kavuri, with a traditional finance background, had moved his assets to FTX seeking safety. After the exchange's collapse, he took a break from crypto investments but still maintains faith in the underlying asset class, stating, "I think cryptocurrencies generally, it should be here to stay."


Brett Harrison, former President of FTX's U.S. division, was blindsided by the exchange's downfall but remains committed to cryptocurrencies. He is raising funds to establish a new tech-forward brokerage, Architect Financial Technologies, emphasizing seamless digital asset trading.


Anthony Scaramucci, the founder of Skybridge Capital, also faced significant losses due to FTX's collapse but remains bullish on Web 3 technologies and the future of a distributed internet. He advises patience and resilience, underscoring the enduring potential of the crypto industry.


FTX's abrupt bankruptcy in 2022 sent shockwaves through the crypto community, as investigators discovered $8.9 billion in missing customer assets. Founder and ex-CEO Sam Bankman-Fried now faces criminal charges related to fraud and campaign finance violations. However, despite these challenges, FTX customers have yet to receive any reimbursement.


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