In this matter, FTX is suing NFT Stars and Kurosemi for failing to deliver NFTs. This bears all the hallmarks of a stopgap measure addressing a serious, underlying concern. Of course, recovering investor assets is important, especially for investors who are still suffering from the platform’s failure. We are discussing the lives of real people—not simply prospective numbers on a balance sheet. Real people—your neighbor, your cousin, perhaps even you. Sure, clawing back the money is a good first step, but come on. To us, the whole system seems rigged against the average investor, particularly those of us here in Gen Z. I, for one, don't think so.

Beyond Dollars: Justice Must Prevail

That’s not the core of the problem. The problem is that FTX was poorly run. It’s that the whole DeFi space is just really the Wild Wild West right now. Remember the gold rush? Empty promises of untold wealth, next to no oversight and a great deal of the public being taken to the cleaners. The crypto world shares a similar vibe. Every day we are inundated with hype and FOMO with often not enough knowledge to properly assess the immense underlying risk of investing.

NFT Stars and Kurosemi are just a small part of a much larger, uglier picture. When FTX collapsed, an $8 billion hole in its balance sheet was inadvertently exposed. Eight billion dollars! Where did it all go? How many other companies are doing business under that same cloud of secrecy?

It hurts deep when you recognize that this isn’t just about valuable investments gone astray — this is about shattered dreams. It’s forcing young people to defer home purchases, family formation, and student loan repayment. Instead, they’re pursuing the crypto dream. We were sold on financial independence, but most of us received financial devastation.

Crypto's "Innovation" Excuse Isn't Cutting It

Some argue that regulation stifles innovation. What sort of “innovation” gives cover to such egregious mismanagement and fraud? We need to be honest: the lack of oversight in the crypto world isn't a bug. It's a feature that benefits the few at the expense of the many.

Think about it: traditional financial institutions are heavily regulated for a reason. They are trusted with our money, and we as taxpayers rightfully expect them to use that money responsibly. Why should crypto be any different? Just because it’s new and shiny and innovative doesn’t mean it gets a pass. As introduced by US Senators Sherrod Brown and Ron Wyden, the PROOF Act is a good place to begin. From requiring crypto exchanges to segregate customer funds and be audited on a regular basis, this is a no brainer. It's not enough. What we need is thoughtful, rigorous regulation that protects consumers, prevents fraud, and holds bad actors accountable.

The fact that Three Arrows Capital's (3AC) claim against FTX was increased from $120 million to a staggering $1.5 billion, despite FTX's objections, is frankly outrageous. It reeks of cronyism and a system stacked against anyone not already connected to the wealthy elite. This isn't just about recovering money for creditors; it's about ensuring fairness and accountability for everyone involved.

Gen Z: Time to Demand Better

We, Gen Z, get constantly preached at about how we’re the future. The future is now! It takes the crypto industry to task, which is sorely in need of such an effort. We cannot afford to continue assuming that the adults in the room will take care of this one. We need to demand better.

The FTX debacle — including the specific lawsuits contemplated here — should serve as a wakeup call. It's a reminder that the crypto world isn't immune to the same problems that plague traditional finance: greed, corruption, and a lack of accountability. Recovering ill-gotten assets is certainly a desirable goal, but that’s not enough. We don’t just need a few new protocols, we need systemic change to avoid any future collapses and protect everyday investors, particularly young people new to the game. Let's make our voices heard. The future of finance depends on it.

  • Educate yourself: Don't just blindly follow the hype. Understand the risks before investing in crypto.
  • Contact your elected officials: Tell them you support stronger crypto regulation. Demand accountability for those responsible for FTX's collapse.
  • Support organizations fighting for consumer protection: There are groups working to hold the crypto industry accountable. Find them and support their efforts.
  • Share your story: Talk to your friends, family, and online communities about your experiences with crypto. Let's break the silence and create a collective voice for change.

The FTX debacle, including these lawsuits, is a wake-up call. It's a reminder that the crypto world isn't immune to the same problems that plague traditional finance: greed, corruption, and a lack of accountability. Recovering assets is important, but it's not enough. We need systemic change to prevent future collapses and protect investors, especially young people who are just starting out. Let's make our voices heard. The future of finance depends on it.