Crypto remains relevant despite FTX, says BlackRock’s Fink

NEW YORK, Nov 30 (Reuters) – BlackRock Inc (BLK.N) Chief Executive Larry Fink said on Wednesday that there appeared to be “wrongdoing” at the now-defunct FTX crypto exchange, but that the technology and the future.

“We’re going to have to wait and see how this all plays out (via FTX),” Fink said. “I mean, right now we can make all the judgments that seem wrongdoing with significant consequences.”

He made the comments at an event hosted by the New York Times DealBook, adding that he believes most crypto companies “will not exist” in the future.

FTX filed for Chapter 11 bankruptcy protection in the US in November. 11 said it could owe money to more than 1 million creditors after its precipitous collapse.

BlackRock invested $24 million in FTX through a billionaire fund it manages, he said. Other global asset managers including Temasek Holdings, venture capital fund Tiger Global and Sequoia Capital have also invested in Sam Bankman-Fried’s FTX.

Despite FTX’s problems, Fink said he thinks the technology behind the cryptocurrency “is going to be very important.” He added: “I believe the next generation of markets and securities will be security tokenization.”

Earlier on Wednesday, U.S. Treasury Secretary Janet Yellen said she remained skeptical of cryptocurrencies and called for regulation.

Fink gave a downbeat view on the economy, citing higher-than-usual inflation, rising interest rates and slower growth, and limited room for fiscal stimulus.

“We’re actually going to enter a period of what I call discomfort,” he said. “We’re just not going to have an economy based on the real growth we’re used to.”

However, he sees a more favorable investment environment, especially in areas where interest rates are rising.

Reporting by Carolina Mandl in New YorkEdited by Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

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