After the collapse of FTX, many industry executives, influencers, luminaries, and politicians shared their opinions on the carnage the event caused to the crypto markets and a large number of innocent bystanders. On Dec. 2, Morgan Creek Capital CEO and Founder Mark Yusko explained in an interview that it’s entirely possible that FTX co-founder Sam Bankman-Fried (SBF) was only a “pawn” or a “useful idiot”. to “punish the industry”.
Morgan Creek’s Mark Yusko: ‘This debacle is a fraud perpetrated by, I believe, someone above useful idiots’
Since the Terra LUNA fallout and the large number of corporate bankruptcies that followed the event, there have been a myriad of theories surrounding these topics. FTX’s most recent crash seems to eclipse all the mistakes that took place after the Terra crash, and there are still many unanswered questions regarding the event. Various people shared their two cents on the FTX fiasco, including the host of CNBC’s Mad Money show, Jim CramerCEO of Galaxy Digital Mike Novogratzcongressman Maxine Waters (D-CA), and CEO of Tesla and head of Twitter, Elon Musk.
On Friday, Mark Yusko, CEO and founder of Morgan Creek Capital Management, told Kitco chief anchor and editor Michelle Makori that Sam Bankman-Fried (SBF) was a “pawn.” “These are just pawns in a very large and very elaborate system that was designed to launder money,” Yusko told Kitco’s main presenter. “It is certainly possible that someone intended to make an example out of this so that regulators could step in and punish the industry,” he added. Yusko explained to Makori that decentralized finance, also known as challenge, threatens traditional finance.
Unlike traditional finance, which is usually controlled by large banks and financial institutions, Challenge is decentralized, meaning it is not controlled by any single entity. bitcoin (BTC) and defi challenges concepts such as fiat currency and central planning, Yusko told broadcast host Kitco. Yusko and many crypto proponents believe that defi offers a number of benefits, including greater accessibility, transparency, and security. “[Blockchain] replaces trust with truth,” Yusko explained to Makori.
“Who are the arbiters of trust today? Financial institutions, third-party intermediaries, a $7 trillion industry,” Yusko explained. “They would like not to be disturbed by the challenge and the digital assets. It is possible that a group of incumbents tried to lobby for regulation to delay, mask or change the course of this disruption.
Yusko also pointed out that it’s possible that “someone above” SBF or Alameda Research’s Caroline Ellison worked towards a common goal, at the expense of the crypto industry. “This debacle is a fraud perpetrated by, I believe, someone above useful idiots. These two don’t play 10D chess,” the Morgan Creek CEO explained. “Very large sums of money went to political candidates. There is evidence of [Sam Bankman-Fried] saying he was going to donate $1 billion to the next election,” Yusko added.
Yusko is extremely bullish on bitcoin (BTC) and in a May 6, 2020 interview, the CEO of Morgan Creek said he expects the top crypto asset to mine $250,000 in five years. During the discussion, Yusko also estimated that the price of bitcoin could also reach $400,000 to $500,000. During his interview with Makori, Yusko noted that the United States could risk stagnation if it over-regulates the industry. “If we become too onerous from a regulatory point of view, [crypto] will just show up in other jurisdictions,” Yusko said. “So ultimately [crypto] will win.”
What do you think of Mark Yusko’s opinion on FTX executives being pawns? Let us know what you think about this topic in the comments section below.
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