Mary Asridge, a Goldman Sachs spokeswoman, said that only a small proportion of Goldman’s clients are eligible to buy cryptocurrency-linked investments through banks. The client had to go through a “live training” session to prove that he had been warned by Goldman about the dangers of his property. Only then were they allowed to put money into the “third party funds” that the bank first looked up.
Morgan Stanley’s clients cannot invest more than 2.5% of their total net assets in such investments, and investors have two crypto funds (Galaxy Bitcoin Fund) run by external managers with traditional banking backgrounds. I could only invest in).
Still, those managers may not have escaped crypto crashes. Mike Novogratz, CEO of Galaxy Digital and former Goldman banker and investor, said: Said Last month’s New York Magazine where he took too many risks. According to a recent disclosure of Galaxy Digital Asset Management, total assets of Galaxy Digital Asset Management, which peaked at nearly $ 3.5 billion in November, had fallen to about $ 1.4 billion by the end of May. Mr Novogratz would have been in a worse condition if he hadn’t sold the main chunks of Luna three months before the Galaxy collapsed.
However, millionaire Novogratz and wealthy banking clients could easily survive the loss or were saved by strict regulations, but private investors had no such protection. ..
Jacob Willett, a 40-year-old man from Mesa, Arizona, who works as a delivery driver for DoorDash, kept his entire life savings in a highly profitable Celsius account. The peak prepaid card was $ 120,000, Willett said.
He intended to use the money to buy a house. When cryptocurrency prices began to fall, Willett sought reassurance from Celsius executives that his money was safe. But all he found online was a evasive response from company executives as the platform struggled and eventually frozen more than $ 8 billion in deposits.
A representative of Celsius did not respond to a request for comment.
“I trusted these people,” Willett said. “I don’t know what they did is not illegal.”
