Unpacking the FTX disaster, with OVEX’s Jon Ovadia
In this episode of TC|Daily, Jon Ovadia, CEO of South Africa crypto exchange OVEX, joins TechCentral’s Duncan McLeod from Dubai to talk about FTX’s bankruptcy and what it means for South African crypto players and for the ecosystem more broadly.
FTX, which is a shareholder in OVEX, was forced to file for bankruptcy protection after founder Sam Bankman-Fried was unable to secure emergency funding to keep the business afloat after customers took fright and began withdrawing billions of dollars from the exchange.
John Ray III, an insolvency expert who oversaw Enron’s liquidation, has been appointed to oversee the FTX bankruptcy. He has described its collapse as the worst case of corporate failure in the more than 40 years he’s been in the insolvency business, and has compared it to the failure of Enron, the Financial Times reported.
In this episode of TC|Daily, Ovadia unpacks:
• The impact of the FTX collapse on OVEX clients, if any.
• OVEX’s decision to revoke FTX’s authority to market its offshore crypto derivatives products in South Africa and what that means.
• What went wrong at FTX, why it caught the crypto industry by surprise, and whether fraud or other criminality was likely involved.
• The damage to crypto as an investment class as a result – will this incident scare away investors from the crypto space for good?
• Whether investors should leave their money in crypto exchanges – is it safe?
• Whether better regulation would have prevented the FTX disaster – and are South African regulators doing enough to regulate the crypto space?
Ovadia also provides an update on OVEX and its international expansion plans.
Don’t miss the discussion!