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The FTX crisis is the hottest topic at the largest Bitcoin conference in Latin America

The FTX crisis is the hottest topic at the largest Bitcoin conference in Latin America

The largest crypto conference in Latin America, LaBitConf 2022, kicked off on Friday.

The mood in Buenos Aires, Argentina was bright and shiny, where bitcoiners poured into “Paris of the South” to deliver their stimulant-charged adoption calls to anyone willing to listen. But one dark theme overshadowed the event: FTX.

the fall one of the world’s largest digital asset exchanges, and its CEO kept everyone talking from the start of the event.

By the time the big speakers took the main stage on Saturday, a rumor had even circulated on Twitter that former billionaire Sam Bankman-Freed had fled his base in the Bahamas for Argentina in a private jet. (This is later turned out to be nonsense.)

This hysteria even prompted Ethereum co-founder Vitalik Buterin – perhaps the most recognizable speaker at the conference – to come out with a statement. unexpected early conversation at his main event, where he likened the disgraced crypto CEO to a “dictator of the 1930s.”

Bankman-Fried, whose crypto empire burned down this week, is currently under investigation for “criminal misconduct,” as revealed today. So what are other exchanges and crypto companies doing to prove to their customers that the same won’t happen to them? The LaBitConf participants had ready-made answers.

The most popular exchange in Latin America, the Mexican Bitso, spoke with decipher about the destruction. “We count we know what happened, through third parties and Twitter,” said Felipe Vallejo, Bitso’s director of regulation. “I’m really sorry for the people who lost money – I don’t want to make value judgments until we see the facts.”

He added that his exchange has always prioritized security and trust, sometimes at the expense of growth. He added that increased regulation would have consequences for those who “do evil.”

Vallejo’s comments echo those of Coinbase founder and CEO Brian Armstrong. said earlier this week: what a perfect kick in the ass for regulators to create crystal clear rules and policies.

BitGet’s operations manager for Latin America and Spain, Mario Iemma, said the crisis could be an opportunity: the Singapore-based exchange, which is the region’s leading derivatives market, announced a new system that allows users to see the exchange’s liquidity at all times.

The idea, he said, is to increase transparency, which in turn will lead to wider adoption.

Leo Elduyen, CEO of blockchain company Koibanx said on stage that we need to “open our eyes” to companies like FTX and Celsius that went bust earlier this year and admit that they are not real Web3 companies.

Rules aside, others were just harsh. An eccentric cowboy-hat-wearing bitcoin developer, Jimmy Song, yelled on stage that the customers were to blame.

“The bottom line is that people trusted FTX, and FTX was cheating customers,” he said to applause. “What we preach in bitcoin is to verify — not to trust. The minute you trust someone, you give them strength.”

Buterin added that “we have seen a huge number of things this year,” referring to the fall of many crypto projects and hacks.

“Firstly, these are things that break because they have a model, and this model is fundamentally bad,” he said. “And the other is things that break because there is no trust in either the model or the guy.”

While regulators and law enforcement are investigating what really caused FTX to crash, everyone at LaBitConf this year seemed to agree on one thing: the crypto industry needs to be very careful who they give their money to.

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Written by khirou

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