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“Populist anger” fueled the crypto craze and bankruptcy, but Satyajit Das says a bigger threat is lurking in sight

One of the few financiers to ring a warning bell ahead of the global financial crisis believes today’s cryptocurrency “meltdown” was predictable and that “nobody is paying much attention” to a broader financial market problem.

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

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

“There are a number of people who are very adept at exploiting investors’ desire for get-rich-quick schemes.”

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

The Bahamas-based company, founded in 2019 by tech prodigies — Sam Bankman-Fried and his partners Zixiao “Gary” Wang and Nishad Singh — foundered after revelations about its business practices sparked a wave of customer withdrawals.

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