• May 21, 2024

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Compound Founder: There Might Be an Armageddon in Crypto Industry Due to Regulatory Actions

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Robert Leshner, founder of Compound Labs, believes that the latest actions by US regulators against crypto companies “are planned product liquidations” and could destroy a growing market.

According to him, these measures were not taken as a result of an error. He has explained:

“In many ways, they open a new front against the crypto industry. The argument in both cases was that Kraken and Paxos did not comply with investor protection rules. And there are undisclosed risks. Interestingly, these are pretty strong arguments.”

He thinks that users and experts “don’t really know how Kraken works.” The same problem concerned FTX or Celsius, because of which “everything fell like dominoes.” In this regard, he called crypto companies “black boxes.”