Crypto Is Facing A Trust Crisis: One Part Lehman Brothers, One Part Dot-Com Bubble?

Crypto Is Facing A Trust Crisis: One Part Lehman Brothers, One Part Dot-Com Bubble?

People keep asking if the the cryptocurrency market is comparable to the Lehman Brothers moment or if it's another rendition of the dot-com bubbleGalaxy Digital Holdings Ltd (Pink: BRPHF) CEO Mike Novogratz said Wednesday on CNBC's "Squawk Box."

"It's a little bit of both," Novogratz said.

What To Know: Two weeks ago, FTX and related trading firm Alameda Research filed for Chapter 11 bankruptcy following the collapse of the FTX Token (CRYPTO: FTT) and the unraveling of former FTX CEO Sam Bankman-Fried.

The FTX fallout had a ripple effect on the entire industry as a result of what appears to be reckless management practices and potential fraud.

Novogratz likened the collapse of FTX to the bankruptcy of Lehman Brothers during the 2008 financial crisis, citing bad practices, overleveraging and asset liabilities.

Lehman Brothers invested heavily in mortgage-backed …

Full story available on Benzinga.com