Token

Read

FTX victim, who lost over 90% of his net worth following the collapse, successfully raised $450,000 from his recently launched trading fund.Belgian resident Kasper Vendeloock <a href="https://www.theblock.co/post/239686/trader-who-lost-over-90-of-net-worth-on-ftx-raises-450000-for-new-fund" rel="noopener noreferrer nofollow">recently launched</a> Musca Capital, a new fund that trades liquid tokens. The venture is supported by Hashmask NFT project founders and two other investors.With the funds raised, Vandeloock <a href="https://coinmarketcap.com/headlines/news/trader-who-lost-over-90-of-net-worth-on-ftx-raises-450000-for-new-fund/" rel="noopener noreferrer nofollow">aims to rebuild</a> his trading systems and implement automated strategies. He will begin by trading liquid tokens on centralized exchanges.Vandeloock strives to recover from a substantial financial setback resulting from the collapse of the disgraced <a href="https://crypto.news/sam-bankman-fried-to-face-trial-only-on-8-initial-charges/" rel="noopener noreferrer nofollow">Sam Bankman-Fried’s</a> (SBF) <a href="https://crypto.news/voyager-pursue-other-bids-as-ftx-deal-collapses/" rel="noopener noreferrer nofollow">FTX</a> exchange, which led to significant losses in his net worth. He kept most of his funds on FTX, an exchange he trusted due to personal connections with SBF.&nbsp;You might also like: <a href="https://crypto.news/former-ftx-ceo-wants-to-exempt-friends-from-security-checks/" rel="noopener noreferrer nofollow"> Former FTX CEO wants to exempt friends from security checks </a>In November 2022, the exchange <a href="https://crypto.news/oleary-comments-on-ftxs-actions-provoking-a-strong-reaction-from-regulators/" rel="noopener noreferrer nofollow">went bankrupt</a> following SBF and his team’s lack of proper capital controls and gross mismanagement,&nbsp; leaving customers’ funds trapped.&nbsp;At present, only the ongoing <a href="https://crypto.news/what-have-we-learned-from-ftxs-hearing/" rel="noopener noreferrer nofollow">bankruptcy proceedings</a> offer any hope for the recovery of his funds.You might also like: <a href=" https://crypto.news/sam-bankman-fried-expresses-concerns-over-late-evidence-in-criminal-trial/" rel="noopener noreferrer nofollow"> Sam Bankman-Fried expresses concerns over late evidence in criminal trial </a><h2 class="wp-block-heading" id="what-is-musca-capital">What is Musca Capital</h2>The Luxembourg-based fund Musca Capital is focused on trading liquid tokens on centralized exchanges. The firm aims to build highly scalable and robust trading systems to succeed in any trading environment.Its investment strategy&nbsp;is similar to Pantera Liquid Token Fund, which invests in 10-20 liquid tokens at any time.You might also like: <a href="https://crypto.news/ftx-contagion-time-bomb-will-detonate-many-trading-firms/" rel="noopener noreferrer nofollow"> FTX contagion time-bomb will “detonate many trading firms” </a>In a conversation with The Block, Vendeloock stated that an unfortunate incident led to a pivotal lesson for him, losing all his funds on FTX. However, the experience was a valuable learning opportunity.He emphasized the importance of carefully looking for warning signs on exchanges and being more careful when storing hard-earned money on centralized exchanges.<h2 class="wp-block-heading" id="ftx-saga-intensifies-regulatory-scrutiny-on-cexs">FTX saga intensifies regulatory scrutiny on CEXs</h2>The collapse of FTX has caused governments worldwide to become apprehensive about cryptocurrency exchanges, illegal activity, <a href="https://crypto.news/alameda-researchs-market-manipulation-and-insider-trading-took-down-ftx/" rel="noopener noreferrer nofollow">market manipulation</a>, and the need to protect investors. As a result, they are increasing their efforts to regulate and monitor these exchanges.Major cryptocurrency exchanges, like Changpeng Zhao’s <a href="https://crypto.news/binance-lays-off-over-1000-employees-amid-regulatory-hurdle/" rel="noopener noreferrer nofollow">Binance</a>, continue to face increased regulatory <a href="https://crypto.news/okx-is-under-more-scrutiny-since-ftx-collapse-exec-reveals/" rel="noopener noreferrer nofollow">scrutiny</a>, including a complaint from the SEC in the US for operating an unregistered securities exchange and offering illegal securities to US investors.&nbsp;The collapse of FTX has further <a href="https://crypto.news/us-house-committee-to-probe-ftx-collapse-on-december-13-2022/" rel="noopener noreferrer nofollow">highlighted</a> the risks associated with centralized exchanges, and the lack of clear regulatory pathways currently poses more challenges for market participants to achieve regulatory compliance.Although crypto investors have largely agreed on the need for centralized exchanges (CEXs) to become regulated after FTX’s collapse, it may not be possible due to the lack of <a href="https://crypto.news/crypto-exchanges-relist-xrp-amid-ripples-partial-victory-in-us/" rel="noopener noreferrer nofollow">clear-cut regulatory guidelines</a> in the US and other jurisdictions.&nbsp;The FTX case shows that companies holding crypto for customers can make investment decisions that end in disaster, and when they do, there’s no clear guarantee that customers will get their assets back.&nbsp;Therefore, it is essential to be cautious while dealing with centralized exchanges and to consider self-custody as an alternative.Read more: <a href="https://crypto.news/ftx-engages-in-talks-to-bring-back-international-crypto-exchange/" rel="noopener noreferrer nofollow"> FTX engages in talks to bring back international crypto exchange </a>

FTX victim raises $450k for liquid token startup

Table of Contents

crypto.news

Other articles published on Jul 15, 2023

Permission Platform Feature Launch: Rewarded Surveys

Cardano Transactions Cross Big Milestone: Details

Ripple CTO Missed Out on This Stock Following XRP Ruling

Crypto Lawyer Calls Out Bloomberg Columnist For Stance On XRP

Is Stellar (XLM) A Good Investment Option? Huobi Token (HT) Investors Wait For Gains While Tradec...

Ripple CEO calls XRP ruling a win for crypto industry

Join our free newsletter for daily crypto updates!