FTX’s multibillion-dollar cryptocurrency [blowup](https://www.cnbc.com/2022/11/11/sam-bankman-frieds-cryptocurrency-exchange-ftx-files-for-bankruptcy.html) hasn’t destroyed all religion in the trade.In a new documentary premiering Monday, FTX customers, insiders and buyers inform CNBC that regardless of not receiving a single greenback value of cryptocurrency again, they’re optimistic on the trade and plan to maintain investing.Evan Luthra, an app developer, entrepreneur and angel investor, informed CNBC he lost $2 million {dollars} in the collapse of FTX.Luthra mentioned he knew when FTX filed for chapter in late 2022 that he would not have “access to any of this money for the next few years.” He continues to talk at crypto conferences FTX Customer, Evan Luthra, spoke to CNBC in Miami earlier than talking at a crypto convention.
CNBC “I do need everyone to know that the mistake right here was not [bitcoin](https://www.cnbc.com/quotes/BTC.CM=/), the mistake was not crypto,” Luthra mentioned.“The fundamental reason why we buy bitcoin, why we use bitcoin has not changed.” Luthra mentioned his hefty loss on FTX hasn’t shaken his bitcoin bullishness.“I know it’s going to end up at over $100,000 sooner or later anyways, so for me it’s a great buy,” he mentioned.
Bitcoin is presently buying and selling at about $26,900, down from a excessive of about $69,000 in December 2021.“All the success is made in the trenches, not when everybody’s already celebrating,” he mentioned.FTX, as soon as certainly one of the largest cryptocurrency exchanges in the world, spiraled into chapter 11 after its swift collapse final 12 months.Shortly after, FTX investigators mentioned they found $8.9 billion {dollars} in buyer property had been lacking from the exchange.FTX founder and ex-CEO Sam Bankman-Fried faces [seven prison prices](https://www.cnbc.com/2023/08/22/sam-bankman-fried-not-getting-adderall-living-on-bread-and-water-.html) for fraud and violating marketing campaign finance violations.He’s pleaded not responsible to all prices.Jury choice begins in Manhattan on Tuesday.
FTX Founder Sam Bankman-Fried leaves from Manhattan Federal Court after courtroom look in New York, United States on June 15, 2023.Fatih Aktas | Anadolu Agency | Getty Images At a [bankruptcy listening to in April 2022](https://www.cnbc.com/video/2023/04/12/ftx-hearing-fallout-attorneys-says-ftx-has-recovered-more-than-7-point-3-billion.html), an legal professional for FTX mentioned $7.3 billion {dollars} in money and liquid crypto property had been recovered from the exchange.So far, none of the customers interviewed by CNBC have obtained any of their a refund.Jake Thacker, an FTX buyer in Portland, Oregon, informed CNBC he lost a whole lot of 1000’s of {dollars} shortly after dropping his job in the tech trade.
“I’m in quite a big hole right now,” Thacker mentioned.“I’m probably going to have to file for bankruptcy.” FTX buyer, Jake Thacker spoke with CNBC after dropping a whole lot of 1000’s of {dollars} on the exchange.CNBC Thacker informed CNBC he “would encourage people to still invest in crypto.” “I probably would give them some different advice at this point,” he mentioned.That recommendation would include the warning, “Here’s what I learned, don’t make the same mistakes I did.” Bhagamshi Kannegundla mentioned he first heard about FTX in an [advertisement](https://www.cnbc.com/2022/02/14/what-to-know-about-crypto-before-buying-into-super-bowl-ads.html) that includes comic Larry David that aired throughout the Super Bowl.“I was like, oh my goodness, there’s all these big name people utilizing FTX,” Kannegundla mentioned.“So I was like, OK, hey, I think I’ll be safe using this.” Less than a 12 months later, Kannegundla was out $174,000, representing round 60% of his crypto portfolio, from FTX’s collapsed.
Bhagamshi Kannegundla, an FTX buyer, informed CNBC he offered his chapter declare to reinvest in crypto.CNBC “Based on all the other bankruptcies and everything that happened in the crypto market, I was really, really worried about getting anything back, and then how long I would have to wait,” Kannegundla mentioned.Instead of ready for the recoveries to finally be distributed to FTX customers, Kannegundla went on-line and located a firm that will assist him promote his chapter declare for pennies on the greenback to get a little bit of money extra shortly.Kannegundla mentioned his chapter declare was for $174,000.
He obtained round $19,000 in the sale.“The buyer was, after all the due diligence and everything, it went down to like 11% of the $174,000,” he mentioned.Years later, if the FTX chapter course of recovers greater than the 11 cents on the greenback for his declare, the purchaser pockets the distinction.Kannegundla mentioned he could have “zero regrets” if that cash will get recovered as a result of he has a completely different technique.
“I wanted to get the cash from the bankruptcy claim, primarily to invest in crypto again,” he mentioned.“I felt as if there was a good chance for me to make money in the next five to 10 years.” Kannegundla understands that it might be an odd selection.“People might think I’m crazy for this,” he mentioned.
“After going through the FTX and all these other bankruptcies, why would you want to buy any more crypto?” He rationalized his choice.
“When you believe in something as far as technology, you will go through it, you know, it’s kind of like the same person who bought like, let’s say [Amazon](https://www.cnbc.com/quotes/AMZN/) inventory,” he mentioned.Another FTX buyer, Sunil Kavuri, who has a background in conventional finance, mentioned he moved his digital property from rival exchange Binance to FTX as a result of he believed it was a protected place for his cash.He pointed to the undeniable fact that the firm raised cash from prime enterprise capital corporations Sequoia and Paradigm.“I thought OK, this is a very safe, institutionally backed exchange,” he mentioned.
Bahamas-based crypto exchange FTX filed for chapter in the U.S.on Nov.
11, 2022, in search of courtroom safety because it seems for a strategy to return cash to customers.Nurphoto | Nurphoto | Getty Images In an electronic mail to CNBC, Kavuri mentioned he hasn’t bought any crypto since the collapse of FTX as a result of he “wanted to take a break from suffering a massive loss.” Over the final 10 months, he mentioned the majority of his time has been spent preventing “for the rights of all FTX users that lost money due to the FTX bankruptcy.” “It hasn’t shaken my faith in the underlying asset itself,” Kavuri mentioned.“I think cryptocurrencies generally, it should be here to stay.” FTX Customer, Sunil Kavuri spoke with CNBC about his multi-million greenback loss after the exchange filed for chapter.CNBC Across the trade, crypto nonetheless has its believers regardless of the insanity of 2022.Brett Harrison, the former President of FTX’s U.S.enterprise, mentioned he was blindsided by his father or mother firm’s collapse.But he is doubling down on cryptocurrencies.
Harrison, who [left FTX](https://www.cnbc.com/2022/09/27/crypto-exchange-ftx-is-replacing-its-us-president.html) lower than two months earlier than its demise, informed CNBC he “had no reason to suspect that FTX wasn’t anything other than extremely profitable and in great shape” previous to his departure.Brett Harrison, the Former President of FTX US left the firm lower than two months earlier than it is collapse.CNBC Speaking about his plan to maneuver ahead, Harrison mentioned he is been elevating cash to start out a new firm in the house known as Architect Financial Technologies.
“I’d really like to build a technology and a tech-forward brokerage that allows people to trade seamlessly and easily in digital assets and any kind of other tokenized products in addition to other asset classes,” Harrison mentioned.Anthony Scaramucci, founding father of Skybridge Capital, mentioned he felt like he was late to the recreation.He did not make his first bitcoin funding till October 2020.
He later began Skybridge to focus on digital property.
Anthony Scaramucci, the founding father of Skybridge Capital, spoke with CNBC at his workplace in New York.CNBC Scaramucci informed CNBC he “was building a close relationship with Bankman-Fried” and felt “betrayed and disappointed” when FTX collapsed after making a $10 million greenback funding in the exchange’s FTT token.He mentioned he nonetheless sees “a very strong bull case for Web 3,” referring to broad applied sciences surrounding crypto and the potential way forward for a distributed web.“You got to be patient” he mentioned.
“If you’re going to go through a period of fraud, and fraudsters and over leverage, you have to see it to the other side.”.
