'We have to suffer'
Mr. Carnegie was one of the FTX clients caught in the epic collapse of the Bahamas-based exchange. Bankman-Fried is currently on trial in New York, accused of using client funds to make risky venture capital investments and donate to political causes.
Carnegie said the utopian goals of cryptocurrencies were overrun by “a bunch of really disgusting Ponzi schemes.”
"We were [all] part of that and we enjoy the bull market and we have to suffer, day after day, collective responsibility.
"We're going to have to dig deep and find a way to get through this bear market to really prove what we believed about technology, which is really the only answer to a whole host of problems that are going on right now."
Opening the summit, Mr. Jones presented the government's proposals for the crypto sector, which along with financial services licenses, included solvency and cash reserve requirements and a series of new standards for digital asset platforms. They will be applied once the platforms have total stakes of $5 million.
But Jones also specifically called on attendees to help the government draft the final laws.
“We need your views because those on the front line of innovation will have particular ideas about how this regulation will work best for the industry,” Mr Jones said. "But we also need to make sure we keep the consumer at the center of everything we do."
Ryan McCall of local crypto fund Zerocap welcomed the proposals as a "positive step" that would align Australia's regulations with those of other countries.
"In terms of how it compares to what we're seeing outside of Australia, it appears to be a fairly typical approach to more or less mimic existing financial services regulations."
