FTX Founder Sam Bankman-Fried Is Just A Pion To Protect The Crypto Industry

FTX founder and former CEO, Sam Bankman-Fried. (Photo; Doc. CoinTV)

JAKARTA The bankruptcy of FTX has become a news topic in recent weeks, especially since its bankruptcy protection application on November 11. About 10 billion US dollars (equivalent to Rp156 trillion) FTX's costumer funds were used to fund his partner company, Alameda Research. This condition triggered a liquidity crisis on the FTX crypto exchange.

This condition has had a negative impact on the crypto market as a whole where the price of BTC has also decreased since the collapse of Terra LUNA in May 2022. The FTX bankruptcy has extended the bearish market phase in recent months.

Even so, the destruction of the FTX crypto exchange received scathing comments from crypto industry players including Coinbase founder Brian Armstrong and others, some time ago. Now executive Morgan Creek Capital Management, CEO Mark Yusko made a similar statement.

According to Yusko, FTX founder and former CEO Sam Bankman-Fried only has a role as a chess pawn in the draft major player. The statement was made by Yusko in a news anchor Kitco and editor-in-chief Michelle Makori, on Friday, December 2, 2022.

"They are just pawns in a very large and very complicated system designed to launder money," Yusko told Makori.

"Of course there is a possibility that there is an intention from someone to use this as an example so that regulators can enter and punish the industry," he added.

Furthermore, the executive of Morgan Creek Capital Management noted that decentralized finance, commonly known as DeFi, has posed a threat to traditional finance. In the context of Yusko is a centralized financial system, namely banking.

Contrary to traditional finances regulated by banks and financial institutions, DeFi is not centralized, which means no single entity controls it.

Bitcoin (BTC) and other cryptocurrencies oppose the concept of centralized finance. Even so, Yusko believes that crypto and DeFi provide a number of greater benefits in terms of transparency, security, speed of transfer, and easy to access.

"[Blockchain] replaces trust with truth," said Yusko.

Furthermore, he explained that traditional financial institutions do not want to get annoyed with digital assets and DeFi. Therefore, it is possible for related parties to obscure and delay crypto regulation.

They don't want to be disturbed by DeFi and digital assets. It's possible that some incumbent groups may have tried lobbying regulations to delay, obscure, or change the direction of this disturbance," he added.

Furthermore, the investment service company official noted that FTX founder Sam Bankman-Fried or SBF and Alameda Research CEO Caroline Ellison worked together to achieve the desired goal of someone above at the expense of the crypto industry.

"This disaster is a scam committed by, I believe, someone on top of useful▁pendidikans. They both don't play 10D chess," Morgan Creek CEO said, quoted by Bitcoin.com News.

"A very large amount of money goes to political candidates. There is evidence [Sam Bankman-Fried] that he will give $1 billion in the next election," said Yusko.

It doesn't stop there, Yusko also shares his views on crypto regulation. According to him, countries like the United States have the potential to stagnate if they are too burdensome for the crypto industry.

"If we become too burdensome a regulator, [crypto] will only appear in other jurisdictions," said Yusko. "So, in the end, [crypto] will win," said Yusko.