Many low-income people invested in the now-disgraced crypto exchange FTX. That’s because the exchange allegedly targeted poor and underbanked people and convinced them that FTX was just as safe as a regular bank.
by Esmé von Hoffman, Jacobin
In early November, as Andrew Gronek learned from YouTubers that FTX, the giant cryptocurrency exchange where he’d deposited his money, was on a downward spiral, he didn’t believe it. After all, the thirty-three-year-old living in Tempe, Arizona, had been told that his cash was as safe in FTX US as it would be in a typical bank.
Furthermore, he saw that FTX’s much-lauded CEO, Sam Bankman-Fried, had tweeted that FTX was “fine.”
![November 8th 2022, FTT token down -79%. Crypto crash of FTX's coin bankman fried.](https://progressivehub.net/wp-content/uploads/2023/01/Shutterstock_2224048131-uai-258x145.jpg)
But just to be safe, on November 9, as FTX’s valuation was plummeting, Gronek decided to withdraw the small amount of what he believed were his riskier crypto investments, as well as the few thousand dollars that he had directly deposited in the exchange to earn interest. He was counting on that cash to help him cover bills when money ran short. All of these investments provided him much-needed income, and he was “fully expecting to put it back on the platform when it was safe to do so.”
He made the withdrawal request via the FTX US app on his phone — and it looked like it had gone through. But as the days passed, his cash never came.
Recent Posts
VIDEO: A Blueprint For Countering American Fascism
July 26, 2024
Take Action Now Our First Annual Henry A. Wallace Symposium offered lessons from real-life heartland organizers on how to fight for a multiracial…
Gavin Newsom Orders Removal Of Homeless Encampments
July 26, 2024
Take Action Now “The only way to end homeless encampments in California is to end the need for homeless encampments,” an expert said.…
The Crackdown On Antisemitism Doesn’t Have Much To Do With Antisemitism
July 26, 2024
Take Action Now Republican lawmakers increasingly conflate anti-Zionism with antisemitism in an effort limit pro-Palestine speech and criticism of…
Netanyahu’s Unhinged And Bellicose Congressional Address Draws Scorn
July 25, 2024
Take Action Now ‘Our enemies are your enemies,’ the prime minister insisted, setting up confrontation with Iran. By Blaise Malley,…