Cardano Founder Likens Ex-FTX CEO to Fraudster Bernie Maddoff Amidst Trial Revelations
Summary:
Charles Hoskinson, the founder of Cardano, has drawn comparisons between Sam Bankman-Fried, ex-CEO of FTX, and fraudster Bernie Maddoff, criticizing the media for not scrutinizing Bankman-Fried thoroughly. Hoskinson accused Bankman-Fried's influential circle of attempting to publicly absolve him amidst apparent evidence of misappropriation and theft of consumer funds at FTX. The crypto exchange crashed in November 2022, with Bankman-Fried blaming market conditions. Ongoing investigations have highlighted a contrasting scenario and have resulted in seven charges against Bankman-Fried related to FTX's downfall, charges he has denied. The trial began last week, revealing evidence of misappropriation and extensive PR spending by Bankman-Fried.
Charles Hoskinson, founder of Cardano, has compared Sam Bankman-Fried, former CEO of FTX, to the notorious American cheat, Bernie Maddoff. He also criticized the media for failing to scrutinize Bankman-Fried's activities. Known as the architect of the largest Ponzi scheme in history, Maddoff managed to amass an estimated $64.8 billion and even served as Chairman of the Nasdaq stock exchange. Hoskinson voiced his disapproval of the media's portrayal of SBF given apparent evidence linking him and FTX to the misappropriation and theft of consumer funds, alluding to a deeply ingrained corruption in the system.
In a social media post dated October 9, Hoskinson denounced the media hype centered around SBF following the meltdown of FTX. He singled out writer Michael Lewis, whose book focusing on SBF was receiving considerable media attention just before Bankman-Fried's trial date, viewing it as a form of redemption. In Hoskinson's view, there seems to be an attempt to publicly absolve SBF. He noted the lenient coverage by renowned news sources and the release of a book that he dubs as a 'redemption tour.' Hoskinson equates SBF to Bernie Maddoff, claiming that his favorable media treatment reflects the depth of corruption especially among the influential.
FTX held third place among crypto exchanges at the time of its failure in November 2022, having successfully raised substantial capital in the first financial quarter. SBF pointed out the adverse market conditions and a liquidity crunch as key contributors to its fall. Nevertheless, findings from various U.S enforcement authorities showing a stark contrast initiated a series of investigations. Consequently, Bankman-Fried was slapped with seven charges related to conspiracy and fraud tied to the downfall of FTX, charges that he refutes. The case is currently at the hands of Judge Lewis Kaplan.
The proceedings started last week, shedding light on the secret operations of Alameda Research, a trading firm established by SBF prior to FTX. The revelations from the ongoing trial against Bankman-Fried suggest that he spent enormous amounts on creating an influential public presence through aggressive PR campaigns. Among notable beneficiaries of his largesse, are Tom Brady and Kevin O Leary, who were paid handsomely for their time. Other expenditures include private jets, Super Bowl commercials, investment in politicians, and substantial real estate acquisitions.
The first week of the trial, initiated on October 3, emphasized the mysterious loss of $8 billion FTX customer funds. The first week also featured arguments from the defense and prosecution and Adam Yedidia's testimony on October 5. Cointelegraph correspondents are at the trial location in New York, covering the case as it unfolds.
Published At
10/10/2023 8:41:50 AM
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