ICSM Business News: the folly of investing in cryptocurrencies as 80,000 British customers lose out as FTX collapses prompting legal action 

Troubled: Sam Bankman-Fried. Pic: NBC News

ICSM Business News: the folly of investing in cryptocurrencies as 80,000 British customers lose out as FTX collapses prompting legal action 

By Harry Mottram: Some say cryptocurrencies are a Ponzi scheme while others believe they are the future of finance – but 80,000 UK customers have been left out of pocket by the collapse of FTX. Ian Carrotte of ICSM believes influencers, celebrities and large companies have persuaded members of the public and small and medium size businesses to invest in them in the belief that they are a sound investment. That notion has come crashing down with the collapse of FTX.

“There’s an old saying about gambling,” said Ian Carrotte, “only bet what you can afford to lose – and the same is true with cryptocurrency. The swings in value from very high to low are incredible and with the scandal of FTX going under there is the added dimension as investors could lose everything. So if you are going to invest in cryptocurrencies then spread the investments so all your eggs aren’t in one basket.”

One aspect of the collapse is the opening of legal cases against those responsible as tens of thousands of investors seek redress for their losses. In Britain an estimated 80,000 people have lost out. Lucy White for the Daily Mail reported: “As the US crypto exchange's founder Sam Bankman-Fried issued an apology in an email to staff, claiming he 'did not realise the full extent' of the mess his company was in, lawyers claimed the firm could face legal challenges on British shores as well as in the US.”

She said that FTX, Bankman-Fried and a ‘swathe of the company's top brass are already facing legal action across the pond.’

The Daily Mail reported: “Account holders have filed a lawsuit in Miami, claiming that Bankman-Fried and celebrities including US sportsmen Tom Brady and Shaquille O'Neal deceived customers by promoting 'unregistered securities'. These are stocks and other assets which have not been registered with the US financial watchdog, and which should only be made available to 'sophisticated' investors.”

If any of the lawsuits succeed it will almost certainly pave the way for more cases to be brought including ones in this country which could see individuals involved in FTX and its affiliated companies being brought to book. And the more information that emerges from the collapse the worse it gets for the FTX founder Sam Bankman-Fried as it has been revealed he pumped millions of dollars into other companies which now find they have massive holes in their finances.

As the claims made by FTX became more incredible just weeks ago Ian Carrotte of ICSM said it was the classic situation that ‘if something sounds too good to be true then it probably isn’t.’


For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.comIan.carrotte@icsmcredit.com

About ICSM Credit

ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.

For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.

To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com

For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk

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