Following FTX’s fall, billionaire investor warns of crypto’s risky ‘Wild West’ terrain

The co-founder of one of the world’s largest and most successful investment firms on Thursday issued a warning about the crypto market amid the collapse of FTX.

“It’s very risky, it’s very complicated and people don’t have the information they would have if it was properly regulated. It really isn’t regulated, and so it’s the Wild West to some extent. But I don’t think it’s going to completely go away,” David Rubenstein, co-founder of the Carlyle Group, said on “Mornings with Maria.”

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Rubenstein walking

Philanthropist David Rubenstein is seen outside the Washington Monument on Tuesday September 17, 2019 in Washington, DC. (Photo by Matt McClain/The Washington Post via Getty Images) ((Photo by Matt McClain/The Washington Post via Getty Images) / Getty Images)

The crypto space has been the subject of controversy and criticism since its conception in 2009, and many investors have thoroughly discussed the risk involved in the industry. Rubenstein cautions investors about crypto’s lack of security, arguing that it is a “very complicated area” for those who are not “professionals.”

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“If you go to Las Vegas and you like to gamble, you know you’re going to lose money. So if it gives you pleasure to gamble, okay, so take the amount of money you’re happy to lose, fine. In crypto, maybe it’s the same thing,” Rubenstein said to FOX Business’ Maria Bartiromo. “But, you know you’re probably going to lose that. So if that’s okay with you, and you’re losing some money, okay.”

Host Maria Bartiromo inquiring about potential contagion issue erupting within the crypto industry, to which Rubenstein replied, “We should be worried.” However, he added, crypto is “not going to go away.”

“There are a lot of people around the world who are still willing to invest in this. Even if FTX has all the problems it has and other companies have problems, it’s not going to go away overnight. It’s just not going to,” Rubenstein said. “People around the world would say, well, I don’t want my assets taken away if my country invades Taiwan, for example. So, some wealthy Chinese people might say, I want to have some things in assets that nobody can know I have, and then nobody can take them away.”

ftx image

UKRAINE – 2022/01/31: In this photo illustration, the logo of FTX, a cryptocurrency exchange is displayed on a smartphone screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) (Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)/Getty Images)

“I don’t think it’s going to go away completely,” Rubenstein continued. “But clearly it’s been damaged a great deal and a lot of people are going to be suffering from this.”

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