Sen. Cynthia Lummis (R-WY) compared some aspects of FTX’s demise to a Ponzi scheme, and the crypto exchange’s failure prompted her to revisit the crypto regulation bill she and Sen. Kirsten Gillibrand (D-NY) introduced in June. “Certainly, when you’re taking customer assets out of FTX and sending them over to shore up Alameda, that’s co-mingling assets that belong to your customers, that you’re custody-ing for—taking them and using them for your own purposes—borrowing from Peter to pay Paul,” the senator said in an interview with Yahoo Finance on Tuesday. “There are signs of Ponzi scheme-like behaviour.” I believe regulators will look into this.”
