 warned that FTX may be providing financial services or products in the UK without its authorisation. It said bluntly: "You are unlikely to get your money back if things go wrong."It now has a page dealing with the FTX liquidation. Again, the message is that options for those who've invested in it are limited.There is at least a liquidation process in the case of FTX, which will divide up the remains of the firm among those to whom it owes money. Gavin Brown, Associate Professor in Financial Technology at the University of Liverpool, pointed to a recent report which suggested that "42% of exchanges which failed simply disappeared without a trace".But the bankruptcy may not provide much comfort. Prof Brown told the BBC: "In the event of exchange failure, or even bankruptcy, it is the investors who are on the hook for losses."He and other experts warned that often small investors will go to the back of the queue when what remains of a crypto business is divided up among creditors.Experts doubt much money will be coming back. "The unfortunate news is that the money's all gone. It's just not there any more. Investors should expect pennies on the dollar," said crypto blogger and author David Gerard.Image source, Getty ImagesMr Gerard argued that in many of t){kind=link}
Over a million people and businesses could be owed money following the collapse of the crypto exchange FTX, according to bankruptcy filings.
There have also been reports that FTX suffered a hack, taking millions of dollars of crypto from the firm.
It’s a worrying time for individuals who have money in the business.
In the UK, crypto assets are largely unregulated, and experts and financial watchdogs warn there’s little protection for consumers.
Despite strong warnings from watchdogs about the risk of crypto investments, around 6.7 million people in the UK own or have bought crypto assets – close to one-tenth of the population.