A drop in FTX and Sam Bankman-Fried could be good for crypto activity

cointelegraph.com

Never in my career have I seen such a complete failure of corporate oversight and  a complete lack of reliable financial information," FTX's new  CEO John Ray III said in a  filing  Thursday. "This situation is unprecedented because the integrity of the company has been compromised. . systems  and a lack of regulatory oversight overseas to the point that an oversight is concentrated on a very small or inexperienced, sophisticated and potentially vulnerable group." 

 Ray, who oversaw Enron's bankruptcy in 2001, took over as CEO shortly after founder Sam Bankman-Fried . resigned (and allegedly tried to escape to Argentina, although he denies). He is absolutely right that FTX fell due to a complete failure of corporate supervision, but in fact the situation is far from unprecedented. 

 And if the whole industry can. 't 
 Therefore, a stock market crash could turn out to be good for crypto in the long run: although at the moment it only seems  to damage its reputation, the FTX saga, which we regret, is an opportunity to change things before it is  too late - that is, before greed, negligence and corporate evil brings the entire industry to its knees. 

Cases like the FTX are basically a ticking time bomb waiting to go off, and the longer they go unchecked, the more damage they can cause. That becomes clear when you look at the scale of the fraud involved and combine it with the value of the company, which in February was $32 billion, greater than  Nasdaq, Credit Suisse and Robinhood. Of that, Bankman-Fried's personal fortune was $16 billion. 

According to him, "sometimes life sneaks up on you". Well, sometimes your own actions have consequences. 

 The US Department of Justice and the Securities and Exchange Commission are now investigating the collapse. The California Department of Financial Protection and Innovation (DFPI) and Bahamian authorities are also launching an investigation. Legal experts suggest that FTX's use of client funds may constitute fraud or embezzlement. Oh, and the class action lawsuit alleges that "FTX's fraud scheme was designed to take advantage of inexperienced investors" who "collectively received more than $11 billion  in damages." 
 
This shows that it's important to look at a company's background and finances - crypto or not - before allowing it to grow bigger than Nasdaq, not after. Due diligence can help separate solid investments from terrible ideas, good crypto projects, and bad crypto projects. And no, "he was on the cover of Fortune Magazine, he was a big name" is not due diligence. This hits the oldest trick in the book. 
 
Because Bankman-Fried may have graced the cover of Fortune (then  so did Elizabeth Holmes), but she proved her worth as an incompetent and incapable leader. He was nothing but a fraud. In a recent conversation with a Vox reporter on Twitter, he admitted that “ethical issues”—read: his beloved philosophy of charity and effective altruism—were mostly primary because “that's what fame is made of.

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