The fallout from FTX, a crypto exchange platform, has caused turmoil in the blockchain industry.

Key industry analysts and experts have weighed in on what they think resulted in the company’s liquidity problems and what they think about CEO Sam Bankman-Fried before and after the company’s crisis. Bankman-Fried has been alleged to have mishandled client funds and is currently facing an investigation by US regulatory agencies.

Elon MuskThe richest man in the world and CEO of Twitter has shared his thoughts on what he thinks about Bankman-Fried amid the FTX fallout in a twitter space presented by Mario Nawfal with more than 60,000 listeners.

Musk said that Bankman-Fried approached him and was interested in working with him to buy Twitter in March. He added that he had not heard of Bankman-Fried before their half-hour phone conversation. According to Musk, his lie meter alert went off during the conversation and he believes Bankman-Fried is full of lies.

Musk also told listeners to be careful when transacting with crypto. “Not your keys, not you purseMusk says. What this means is that if the users’ money is on an exchange, they don’t own the keys, the exchange does. If things go wrong like with FTX, the users don’t have the rights to the crypto because they don’t own it. But if your crypto is on a ledger, customers own the key.

Turmoil in the crypto space

The ongoing problems at FTX have caused a drop in the crypto market capitalization. The total capitalization of the digital currency market has fallen below $900 billion for the first time since January 2021 and is now $874.74 billion.

On the investor side, crypto users have decided not to bear the brunt of failed crypto exchanges and thus have been withdrawing their money from crypto exchanges. Billions of dollars have been withdrawn through crypto exchange platforms since the fallout of FTX.

Many merchants have taken the initiative to withdraw their funds to a wallet they control to avoid scenarios similar to those seen in the cases of Voyager Digital and Celsius Network, which have filed for bankruptcy and blocked investor funds to date.

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