Cryptocurrency Sector Statement From The Name Who Managed The 2008 Global Crisis!

Lehmanformer head of restructuring Mark J. Shapiroaccording to cryptocurrency The collapse of stock market FTX can be compared to the Lehman Brothers bankruptcy that shook Wall Street 14 years ago.

Mark J. Shapiro Talks About Cryptocurrencies

Speaking on the latest episode of Bloomberg Intelligence’s FICC Focus State of Distressed Debt podcast, Shapiro said, “FTX is the Lehman of the crypto industry because the damage done is still confined to the industry. This is a crypto storm, not a crypto winter, because there is no spread yet.” said.

Shapiro, who was chairman of the restructuring division when Lehman Brothers collapsed in 2008, serves as a financial restructuring and bankruptcy partner at Shearman & Sterling in New York.

Shapiro said that comparing the FTX case to Lehman’s was in a way “comparing apples to oranges”, that Lehman brought many creditors about 45 cents per dollar because “Lehman had a real asset base”, while FTX’s assets were completely blown away. told.

Shapiro said that the pain that spread in the cryptocurrency market after FTX filed for bankruptcy on November 11 will separate the winners from the losers in the industry:

“The weak will eventually die out and the strongest will survive – companies like Coinbase and Galaxy, for example, which seem to have strong balance sheets and much tighter compliance and regulatory frameworks than FTX.”

Shapiro’s assessment echoes a similar assessment presented to Congress Tuesday by John J. Ray, who took over as CEO of FTX after Sam Bankman-Fried resigned last month.

Ray told a House committee today that the problems at FTX were “classic embezzlement” compared to the “sophisticated” crimes at Enron.

*Not investment advice.