RETHINKING - DECEMBER 14, 2022 - FAIRY TALE OF A CRYPTOCURRENCY GUY

After the collapse of FTX, The Wall Street Journal focused into the research about the vulnerability of the businesses with cryptocurrency.

Yesterday, December 13, 2022, the bomb news was the capture order of the anti-hero of FTX, Mr. Sam Bankman-Fried.

This was the story's title about the charges against the FTX’s co-founder “FTX’s Sam Bankman-Fried Charged With Criminal Fraud, Conspiracy”

Today the Editorial Board of WSJ posted in its online version the following opinion column “Opinion | Sam Bankman-Fried’s Crypto Crash”
Under the title of the column, we can read “It’s ‘old-fashioned embezzlement,’ but with new blockchain jargon.”

Next, WSJ wrote “If the rise of Sam Bankman-Fried was a modern tale about cryptocurrency tokens and “effective altruism,” his fall seems to be as old as original sin. “This is really old-fashioned embezzlement,” John Ray, the caretaker CEO of the failed cryptocurrency exchange FTX, told the House on Tuesday. “This is just taking money from customers and using it for your own purpose, not sophisticated at all.”

“Mr. Bankman-Fried, FTX’s co-founder, was arrested Monday in the Bahamas and is expected to be extradited. SBF, as he is often called, has been on a media tour since FTX’s failure, and he portrays himself as a well-intentioned doofus' savant who got in way over his head and—whoops—lost billions of dollars. The sloppiness of bookkeeping is true enough: Mr. Ray said invoices and expenses were communicated via Slack chats, and “they used QuickBooks.”

I posted two opinion comments in the blogger section the editorial of WSJ Online column.

These are my posts:

1) “Regardless of any excuse to justify his actions, the FTX founder Sam Bankman-Fried has to be punished. Like in the case of the founder of Theranos, he built a fraudulent business.”

2) “The fairy tale of Mr. Sam Bankman-Fried had a bad end.”

Other members of the blogger community of WSJ applauded my comments.

SOURCES: The Wall Street Journal