Cardano Founder Compares Former FTX CEO to Bernie Madoff and Criticizes Media
Charles Hoskinson, the founder of Cardano, has compared former FTX CEO Sam “SBF” Bankman-Fried to notorious fraudster Bernie Madoff and accused the media of giving Bankman-Fried a “free pass.” Madoff orchestrated the largest Ponzi scam in history, worth $64.8 billion, and even served as chairman of the Nasdaq stock exchange. Despite public evidence of misappropriation and theft of customer funds by Bankman-Fried and FTX, the media continues to focus on him.
Hoskinson’s Criticism of the Media
In an X (formerly Twitter) post on Oct. 9, Hoskinson criticized author Michael Lewis for his book on Bankman-Fried, which gained significant media attention leading up to his trial. Hoskinson referred to it as an “apology tour” and expressed disbelief that Bankman-Fried is receiving favorable treatment from the media. He stated, “It does show you how profoundly corrupt things have become especially if you have the right friends.”
FTX’s Downfall and Legal Troubles
FTX was the third-largest cryptocurrency exchange before its crash in November 2022. Although Bankman-Fried blamed external market conditions and a liquidity crunch for the collapse, investigations by US enforcement agencies revealed a different story. As a result, Bankman-Fried has been charged with seven counts of conspiracy and fraud related to FTX’s fall.
Revelations from the Trial
The ongoing trial against Bankman-Fried has exposed lavish spending on PR to create a favorable image. The former CEO reportedly paid millions of dollars to celebrities like Tom Brady and Kevin O’Leary for their endorsement. Other expenses included private jets, Super Bowl ads, and payments to politicians. The trial’s first week focused on the disappearance of $8 billion in customer funds, with testimonies from witnesses and arguments from both the prosecution and defense.
Hot Take: The Media’s Role in the SBF Frenzy
Charles Hoskinson’s criticism of the media for giving former FTX CEO Sam Bankman-Fried a “free pass” highlights the corruption within the system. Despite evidence of misappropriation and theft, Bankman-Fried continues to receive attention and favorable treatment from certain media outlets. This case raises questions about the integrity of financial reporting and the influence of personal connections. It is crucial for the media to hold individuals accountable for their actions rather than offering them a platform for redemption. Transparency and unbiased reporting are essential to maintain trust in the financial industry.
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