Ripple’s David Schwartz says that while many are comparing Sam Bankman-Fried to Madoff, there are “huge apparent differences”
Chief technology officer of Ripple Labs David Schwartz, who is also a co-creator of XRP Ledger and XRP, has taken to Twitter to sort of defend the reputation of FTX founder Sam Bankman-Fried.
Ealier today, SBF announced that he had filed for FTX and Alameda Research bankruptcy, thus pushing Bitcoin price further down – below $17,000, as well as the whole cryptocurrency market.
Ripple CTO believes that while many on Twitter are now comparing FTX to Madoff’s Ponzi scheme, there are “huge apparent differences”. Still, he admits that FTX ended up to be a Ponzi.
I’m seeing SBF compared to Madoff. There are huge apparent differences, at least now. Madoff started off a Ponzi and maybe he hoped to replace it with legitimate profits at some future point. SBF seems to have started off legitimate then gradually replaced it with a Ponzi. 1/6
— David “JoelKatz” Schwartz (@JoelKatz) November 12, 2022
Here’s how SBF is different to Madoff, still ending up a Ponzi, per Ripple CTO
Schwartz believes that unlike Bernie Madoff, who created the largest Ponzi in history worth nearly $65 billion, Sam Bankman-Fried seems to have started FTX as a legal crypto business and then it gradually turned into a pyramid, while Madoff started with a Ponzi deliberately, perhaps hoping to replace it with a legitimate company later on.
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