1/6/2023- FTX Liability Tentacles Spread Far

Read Dr. Hartwig’s comments in Carrier Management on the “liability tentacles” arising from the collapse of #FTX. While there are certainly D&O and E&O implications, he takes a dim view of crypto in general and repeatedly warns his students that cryptocurrencies have no inherent or intrinsic value. Dr. Hartwig is quoted in the article stating, “Crypto supposedly accounts for 7 percent of the world’s money…but the reality is that it accounts for 0 percent of the world’s money. That’s because it doesn’t meet the standard criteria for a currency—a medium of exchange, a store of value or a unit of account. Its value is driven entirely by market demand, prices correspondingly rising and falling as people buy and sell. In my opinion, demand is driven by the ‘greater fool’ principle, someone willing to pay a higher price on an already overvalued security.”