Cathie Wood’s investment management firm is among those warning of the potential domino effect of failed cryptocurrency exchange FTX on the industry. According to ARK Invest, the demise of Sam Bankman-once-lauded Fried’s company has had a significant impact on crypto’s reputation and may be a significant setback in progress toward broader acceptance, while ushering in overly restrictive regulatory action. “FTX’s insolvency is, in our opinion, one of the most damaging events in crypto history,” ARK said in a newsletter written by Director of Research Frank Downing and analyst Yassine Elmandjra. “It could put institutional crypto adoption years behind schedule and give regulators leeway to take draconian measures.”
