What We Can Learn From Crypto

Read Time / 2 Minutes

Theme / Wise Living

This Christmas season hits different.  Inflation, stock values, higher mortgage rates  (and the like) have caused greater financial uncertainty for individuals and families throughout the world.  For Sam Bankman-Fried, he is spending his 2022 Christmas in jail fighting allegations of wire fraud, money laundering, and deceiving investors. 

Sam Bankman-Fried, the founder of one of the world’s previously largest cryptocurrency trading platform, FTX, is being held responsible for the loss of over $10 billion that investors had trusted Bankman-Fried’s exchange to hold safely.    

Although a promise is only as good as the person making it, did you know there are organizations out there designed to protect the depositor and/or investor from fraudulent activity?

Yes, organizations like Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) protect owner’s accounts (up to $250,000) against potential deposit loss due to custodial failure.  On the investment side, the Securities Investor Protection Corporation (SIPC) similarly insures investor’s accounts (up to $500,000; $250,000 limit for cash) from losses due to brokerage failure. 

At Christian Wealth Management, we partner with CFD Investments, a Christian Broker-Dealer in Kokomo Indiana.  While FTX, like many other crypto exchanges, was not backed by SIPC, the good news is CFD Investments is a member of SIPC.  Proverbs 22:1 states, “A good name is to be chosen rather than great riches, and favor is better than silver or gold.”

While the loss of billions to investors is nothing short of devastating, it provides a unique opportunity for us to reflect on our current decisions and make appropriate adjustments.

At the end of the day, God kept His promise by sending the Messiah, Jesus Christ, to die for our sins.  That promised fulfilled is enough and is good news for any day.

Ryan De Amicis

Wealth Advisor

408.758.6413

ryan@christianwm.com