Crypto Advocate Criticizes Support for Former FTX CEO in Collapse Trial
Attorney and crypto advocate John Deaton has expressed criticism towards supporters of former FTX CEO Sam “SBF” Bankman-Fried during his ongoing trials related to the collapse of their crypto venture. Deaton believes that individuals who portray Bankman-Fried as a well-intentioned individual who made mistakes and attribute the company’s rapid expansion to his loss of control are unfit to manage people’s finances. He suggests that such sympathizers should not be given interviews with prominent media outlets like 60 Minutes.
Divide Emerges Within Crypto Community Over SBF’s Charges
A significant divide has emerged within the crypto community regarding SBF’s alleged investor fraud charges. While some are deeply concerned about these charges, others attempt to portray him positively in the media. Even after FTX’s bankruptcy filing, SBF continued to participate in interviews and was often depicted as a crypto hero, sparking backlash from the Web 3.0 community.
Evidence of Misappropriation and Call for Sentencing
Evidence suggests that SBF may have misappropriated up to $8 billion, based on the deficit found in the exchange’s bankrupt accounts. Under John Ray III’s leadership, the trading platform has successfully recovered over $7 billion. However, there is a growing call for SBF’s sentencing to serve as a deterrent for other industry innovators. XRP holders’ attorney also seeks accountability from Joseph Bankman and Barbara Fried, SBF’s parents.
Responsibility of Bankman and Fried
No regulatory agency has taken legal action against Joseph Bankman and Barbara Fried, acclaimed Stanford University law professors and SBF’s parents, despite FTX pursuing a legal case against them. However, the crypto lawyer firmly believes that both Bankman and Fried bear full responsibility, a viewpoint shared by others in the industry.
Stanford University Returns Donation from SBF
The criticism aimed at Bankman and Fried has led to a positive outcome. According to Bloomberg, Stanford University, which received a $5.5 million donation from SBF, has decided to return the contribution earmarked for COVID-19 research.
Hot Take: Supporting Alleged Fraudsters Can Have Consequences
Supporting individuals accused of fraud and misappropriation, such as SBF in this case, can have consequences beyond legal ramifications. It can damage reputations and result in institutions distancing themselves from donations or partnerships. The crypto community is divided on how to perceive SBF’s actions, but it is crucial to consider the impact of supporting alleged wrongdoers in the industry.
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