How to keep your cryptocurrency safe after the FTX collapse
Sam Bankman-Fried's fraud of misappropriating users' funds have led investors to explore options that can help safeguard their investments. The fall of the FTX crypto exchange forced many to reconsider their overall approach to investments — starting from self-custody to verifying the on-chain existence of funds. This shift in approach was driven primarily by the lack of trust crypto investors have in the entrepreneurs after being duped by FTX CEO and co-founder Sam Bankman-Fried (SBF). FTX crashed after SBF and his accomplices were caught secretly reinvesting users' funds, resulting in the misplacement of at least $1 billion of client funds. Efforts to regain investor trust saw competing crypto exchanges proactively flaunting their proof-of-reserves to confirm users' funds' existence. However, community members have since demanded that the exchanges show their liabilities to safeguard the reserves. With SBF, the self-proclaimed “most generous billionaire,” comm...
