The CEO of crypto asset manager Wave Financial said that more crypto exchanges are likely to crash.
With over $1 billion in assets under his management, the crypto asset manager managed to survive the collapse of FTX without losing customers. It has now warned of potential risks associated with other exchanges.
Wave Financial CEO Speaks About Stock Markets
David Siemer, CEO of the company, said:
“A week or two before the crash, we had assets in FTX for my clients. But we knew what was going on and disposed of all assets before a real problem arose.”
FTX filed for bankruptcy protection in November, leaving hundreds of thousands of customer assets on the exchange. US prosecutors charged former CEO Sam Bankman-Fried last week with fraud and money laundering.
Regarding the customer, Siemer said:
“Our expectation is that there will be other exchanges that go bankrupt, some of which may be in the top 10. We sit and wait to see when they explode.”
Siemer said his company’s approach to risk helped them maintain their balance sheet in a bear market.
The asset manager was among the companies bidding for the assets of Voyager Digital, which went bankrupt in July.
Siemer also said the following about Binance:
“They are the largest stock exchange in the world. There’s no way Binance will lose most assets like FTX. There is no hedge fund affiliated with them.”
