Benzinga - Two crypto industry stalwarts appeared on stage at the Benzinga Future Of Digital Assets in New York on Tuesday to talk through rebuilding crypto after the FTX debacle. Real Vision's Ash Bennington and Former FTX US president Brett Harrison talked about Sam Bankman-Fried (SBF) being a real danger to others.
Harrison, who knew SBF when he worked at Jane Street, underscored the importance of holding him accountable for his actions, stating it is crucial to put him “out of harm's way [so] that he can stop harming other people.”
Harrison stated that the FTX case is a cut-and-dry instance of financial fraud that really had nothing to do with blockchain technology or digital assets, but rather a tale of human greed. He emphasized the importance of moving on from this incident.
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Harrison elaborated that SBF refused to relinquish control of the company until the very end, despite admitting to a significant shortfall, having misappropriated customer funds, and deceiving his employees, not to mention the numerous investors and customers who were poised to lose substantial amounts of money on his exchange.
“[SBF] still thought – I'll just go and raise more money and you know, cover up this crime with additional crimes … I think that really showed that he had been thinking 'I completely lost touch with reality,'” Harrison said.
Bennington inquired about the lessons learned from the FTX situation, particularly regarding our ability to detect fraud. In response, Harrison emphasized the need for skepticism, noting that people are often captivated by the narrative of a unique, visionary individual who can rapidly grow a business from nothing to a billion-dollar enterprise in a very short time.
Harrison pointed out that OpenAI, an American artificial intelligence organization, was developed over many years, illustrating how genuine innovation typically unfolds. He observed that while businesses are growing, their expansion is not in a manner that's utterly unsustainable and chaotic.
Harrison concluded by stating that the investor support for SBF serves as a cautionary tale.
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Photo: Pratya Jankong
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