The head of the Securities and Exchange Commission warned Americans about the risks of investing in the lightly regulatedcryptocurrencies industry as one of the largest exchanges went up in flames.
The market for coins has been affected by the FTX crisis.
Gary Gensler, Chairman of the SEC, told CNBC that when you give a coin exchange your holdings go down, you will stand in line at a court.
Just days after FTX collapsed as it was unable to meet billions of dollars in withdrawal requests, Gensler urged people to use their money.
The reference to the fact that FTX users are not guaranteed to see their holdings again is a grim allusion.
It is not clear how individuals will ever see their money again save legal action after the withdrawal of Binance from the FTX deal.
According to several outlets, the SEC, Department of Justice and Commodity Futures Trading Commission are looking into how FTX managed consumer funds.
The exchange experienced a run of withdrawals early this week after the CEO of the other exchange expressed concerns about insolvency. On Tuesday, the company entered an agreement to acquire FTX, before bailing a day later. FTX dragged down the rest of the market with it, sending the largest coins down 18% and 21%, respectively.
When contacted by Forbes about dropping from our list of billionaires, Bankman-Fried offered his first public comment: "Hey, not totally clear but certainly can't confidently dispute, will update later if new info comes out..."
"It's unbelievably frustrating that we basically have a situation that looks like Theranos." The investor said he doesn't know if he'll ever see the $77 million his firm held at FTX.
This is what led to the FTX crash.
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