I was wondering if some of the D-brand supporters of Bankman-Fried would start to regret their suckerdom.
Yes. Jeff Roberts at Fortune magazine is asking the right questions about the political connivance, but still not perceiving the TOTAL PERFECT COMPREHENSIVE FRAUDULENCE of the ENTIRE blockchain enterprise.
Gary Gensler blew it again. After his agency failed to warn investors about Terra and Celsius—whose collapses this spring sparked a trillion-dollar investor wipeout—the Securities and Exchange Commission chair allowed an even bigger debacle to unfold right under his nose. I’m talking, of course, about the revelation this week that the $30 billion FTX empire was a house of cards and that its golden boy founder, Sam Bankman-Fried, is the crypto equivalent of Theranos’s Elizabeth Holmes.
Well, not exactly. Holmes was not a typical scammer. Her company actually produced a machine that worked. The prototype performed some of the advertised tests accurately. If she had grabbed up this smaller dream and developed it appropriately, she would have been a middle-sized success. Instead, she got carried away into fraudulent territory, faking the tests that the machine couldn’t possibly perform. To my mind it’s more of a classic tragedy than a crime. Like many big dreamers, Holmes didn’t know when to stop and wouldn’t listen to mature advice.
Absolutely NOTHING in the blockchain world can possibly work, and it doesn’t require special expertise to see it.
To be fair, Gensler was not the only one suckered by SBF. Nearly everyone else—myself included—fell for the narrative that SBF, with his cute afro and aw-shucks demeanor, was exactly the savior crypto needed to shake off its dodgy reputation and emerge as part of the mainstream financial system. The problem is that cop-on-the-beat Gensler not only failed to spot the crime—he appeared set to go along with a legislative strategy that would have given SBF a regulatory moat and made him king of the U.S. crypto market.
A writer who admits he was wrong is a PRECIOUS GEM in these times of never stop, never listen, never apologize. BRAVO!
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Later after reading more about SBF: The parallel is perfect in terms of background if not technology. Elizabeth’s family was deeply involved in the military and foreign policy sides of Deepstate. Kissinger and Shultz knew Elizabeth from birth, so their support of her enterprise was natural. Sam’s family is deeply involved in the banking and “social science” sides of Deepstate. His father advises hedge funds on how to evade taxes, and his mother runs a D-brand social media NGO. Perfect combo of skills and connections.
I still find it interesting that Sam’s empire was “exposed” and collapsed one day after the “election” eliminated the need for his contributions and endorsements.