Mike Novogratz, the billionaire investor who once called himself the ‘Forrest Gump of Bitcoin,’ said the recent turbulence in the cryptocurrency industry is a “full-fledged credit crisis” and acknowledged that he was “darn wrong” about the magnitude of the leverage in the system. 

“What I don’t think people expected was the magnitude of losses that would show up in professional institutions’ balance sheets and that caused the daisy chain of events,” Novogratz said at the Bloomberg Crypto Summit Tuesday. “It turned into a full fledged credit crisis with complete liquidation and huge damage on confidence in the space.”

The founder of Galaxy Digital Holdings Ltd., who was a big promoter of Terraform Labs, the company behind Terra and Luna, said said the lesson learned from the collapse of the stablecoin was that both the industry and retail investors “really had very, very little concept of risk management.” 

He also blamed regulators for not doing enough to protect investors and called for more transparency and disclosure in the industry.

“I don’t know what the SEC should have done, or could have done or might have done, but they didn’t do a lot to protect the retail investors,” Novogratz said.