Black_background_logo_BitcoinWorld-removebg-preview
Latest News

According to Cardano founder Sam Bankman, he “fried just like Bernie Madoff.”

Charles Hoskinson has drawn a striking parallel between SBF and the infamous financial fraudster, Bernie Madoff, who orchestrated the largest Ponzi scheme in history. He also accuses the media of granting SBF a somewhat lenient portrayal.

Charles Hoskinson, the visionary behind Cardano, has juxtaposed former FTX CEO Sam “SBF” Bankman-Fried with the notorious American con artist, Bernie Madoff, responsible for orchestrating the most colossal Ponzi scheme in the annals of financial chicanery. Hoskinson doesn’t mince words as he points an accusing finger at the media, alleging a certain indulgence toward the former FTX CEO.

Bernard Lawrence Madoff, a name etched in the annals of financial deception, was the nefarious architect behind the largest-known Ponzi scheme in history, staggering in its estimated worth of $64.8 billion. At one point, Madoff even ascended to the esteemed position of chairman of the Nasdaq stock exchange.

Hoskinson’s indictment of the media’s disproportionate attention to SBF, despite mounting evidence of SBF and FTX’s involvement in financial improprieties and the misappropriation of customer funds, serves as a stark indictment of the corruption plaguing the system.

In a recent missive on the digital platform X (formerly known as Twitter), dated October 9, Hoskinson unleashed a scathing critique of the media frenzy surrounding SBF, particularly in the aftermath of the FTX debacle. He trained his sights on author Michael Lewis, whose book on SBF had garnered substantial media attention just days before the former FTX CEO’s trial, characterizing it as nothing short of an “apology tour.”

The founder of Cardano astutely observed the existence of a group keen on securing public exoneration for SBF, remarking, “We saw this with the kid-glove treatment by The New York Times, and now there’s a book that reads like an apology tour. It’s nothing short of astonishing that the Bernie Madoff of my generation is seemingly immune to media scrutiny. This glaring example underscores the profound corruption that has permeated our system, especially for those with the right connections.”

At the time of its spectacular collapse in November 2022, FTX had secured the position of the third-largest cryptocurrency exchange, following a multimillion-dollar funding round earlier that year. SBF attributed the downfall to external market conditions and a liquidity crisis. However, the investigations launched by various United States enforcement agencies painted a drastically different picture.

In the wake of these probes, Bankman-Fried found himself facing seven counts of conspiracy and fraud related to the fall of FTX. He has maintained his plea of innocence, with Judge Lewis Kaplan presiding over the case.

The jury trial commenced just last week. The testimony provided during the inaugural week of the trial unearthed startling revelations. Alameda Research, a trading firm established by SBF before the launch of FTX, had a clandestine backdoor for channeling customer funds as far back as 2019.

Emerging details from the criminal trial against Bankman-Fried have also exposed extravagant spending in pursuit of image enhancement. The former CEO lavished millions on high-profile individuals such as Tom Brady and businessman Kevin O’Leary, essentially purchasing a few days of their time. This extravagant spree extended to private jets, Super Bowl advertisements, and even contributions to political figures. An excerpt from Lewis’ book even suggested that SBF contemplated offering Donald Trump a staggering $5 billion not to pursue political office.

The trial’s inaugural week, commencing on October 3, zeroed in on the baffling disappearance of $8 billion in FTX customer funds. It featured testimony from Gary Wang, as well as arguments presented by both the prosecution and the defense, culminating in testimony from Adam Yedidia on October 5.

Cointelegraph’s dedicated team of reporters is stationed in New York, diligently covering the trial of the erstwhile FTX CEO, Sam “SBF” Bankman-Fried. As this riveting saga unfolds, stay tuned here for the latest updates.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.