Satyajit Das believes crypto boom and bust is just part of ‘every bubble being pricked’ in wider market sell-off

One of the few financiers who sounded a warning bell before the global financial crisis believes today’s cryptocurrency “meltdown” was predictable, and that “nobody is taking much notice” of a broader financial market problem.

In an interview with ABC’s The Business, former financier and author Satyajit Das said the cryptocurrency market had been propped up by rampant liquidity and cheap cash pumped into the financial system by central banks.

“I can understand why people went into crypto. It was populist anger,” Mr Das said.

“There is a whole bunch of people who are very skilled in terms of exploiting investors’ desire for rapid riches.”

Mr Das’ comments come as the fallout continues from the spectacular collapse of cryptocurrency exchange FTX.

The Bahamas-based company set up in 2019 by tech wunderkinds – Sam Bankman-Fried and his partners Zixiao “Gary” Wang and Nishad Singh – failed after revelations about its business practices led to a surge of customer withdrawals.


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