Cardano’s founder, Charles Hoskinson, has drawn parallels between the embattled co-founder of FTX, Sam Bankman-Fried, and infamous Ponzi scheme boss, Bernie Madoff. According to a post on X (formerly Twitter), Hoskinson stated that Bankman-Fried’s actions can be likened to Madoff’s, but the former is now receiving favorable treatment from the media.
In addition, Hoskinson criticized the attention garnered by Michael Lewis’ book and the impact it may have on the trial, referring to it as an “apology tour.” He expressed disbelief at the fact that Bankman-Fried, whom he referred to as the “Bernie Madoff of my generation,” is being given a free pass by the media, highlighting the level of corruption in society, particularly when one has the right connections.
Bernie Madoff, known as the mastermind behind the largest Ponzi scheme valued at $64.8 billion, served as the Chairman of the tech-driven Nasdaq, without arousing initial suspicion. On the other hand, Bankman-Fried’s FTX was the third-largest exchange before its collapse in November 2022 due to various allegations of misappropriation of user assets and lavish expenditures.
Hoskinson’s concerns are not unique, as many others have voiced similar sentiments regarding sympathizers of Bankman-Fried amidst the trial, dismissing the notion that his actions were mere mistakes. Pro-web3 lawyer, John Deaton, expressed similar views over the weekend, stating that those who sympathize with Bankman-Fried and view him as well-intentioned are unfit to manage public wealth.
Deaton further mentioned that Bankman-Fried’s parents were complicit in the events, and individuals who believed in his innocence actually benefited from the situation. Prior to the downfall of FTX, Bankman-Fried was revered as the hero of web3 and made significant political donations, some of which have been returned to the company for distribution to creditors.
Currently, the bankruptcy team overseeing FTX has accumulated $7 billion in assets to be distributed to the creditors. Bankman-Fried faces multiple fraud charges related to the misuse of investor funds. The Department of Justice (DOJ) is seeking forfeiture of luxury items, including private jets, that have allegedly been purchased with misappropriated funds. The allegations also include $300 million spent on real estate, $80 million in political contributions, and millions of dollars on advertisements, including $100 million for stadium naming rights.
