How FTX built a house of cards


This post is by Om Malik from On my Om


A few months ago, news broke of an insider trading ring at Coinbase, one of the many crypto exchanges hoping to make the world of magical Internet money easy for normals. SEC and other authorities acted swiftly and nailed down the perpetrators; their ill-gotten gains were around million-and-a-half dollars. The accused awaits sentencing. The swift action, in that case, is in sharp contrast to the largest cryptocurrency failure at FTX. 

The founder of the bankrupt exchange, and the man at the heart of this multi-billion dollar scandal, Sam Bankman-Fried, is instead invited to the U.S. Congress for “hearings.” 

Instead of being behind bars in custody, SBF is giving interviews to publications like Vox and The New York Times. Both these articles are a disgrace because both publications failed to ask the only question that mattered. Instead, they allowed SBF to come up with justifications, reasons, and bullshit excuses. Others are giving legitimate coverage to the likes of FTX’s house shrink and letting him make outrageous statements such as that he doesn’t see SBF knowingly committing the crime. “I just can’t see him doing that, honestly,” Lerner is quoted. If I were a house shrink getting paid outrageous money, I wouldn’t see anything wrong with the man either. 

Instead of waiting for the bankruptcy filings and being armed with more details, The New York Times interviewed SBF for a fluff piece. It only undermines my confidence in the Times’ coverage of this part of the finance sector. 

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