Billions of dollars in losses to investors and creditors as a result of the collapse of the FTX cryptocurrency exchange could
to avoidif regulators paid enough attention to the crypto sector, says Caitlin Long. The head of Custodia claims that she constantly reported on the risks of clients simultaneously closing deposits in companies related to crypto assets, but regulators, according to her, did not take into account the comments.
The businessman insists that the US authorities are “ready to kill bona fide innovators”:
“Few people really understand how to separate the wheat from the chaff in the crypto industry, and even fewer are at the negotiating table with regulators like me.”
The head of Custodia often accuses regulators of being inconsistent and biased. In January, the US Federal Reserve Board rejected Custodia Bank’s application for a master account that could enable the financial institution to conduct direct transactions with other lenders. Long has previously sued the Fed’s Board of Governors and the Federal Reserve Bank of Kansas City for delays in processing the application.
In response to the ban, Caitlin Long said that the crypto bank will continue to fight for the right to open a master account for a financial institution. The CEO of Custodia accused the regulator of inconsistency and bias towards the crypto bank.
Source: Bits
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