Cryptocurrency: Don’t blame the medium for the scam
Published 1:07 pm Wednesday, November 23, 2022
BY THOMAS KNAPP
As cryptocurrency exchange FTX falls into bankruptcy and its principals seem likely to face various criminal charges over the activities leading to that bankruptcy, it’s time for another round of crowing from opponents (and would-be regulators) of cryptocurrency. Which means it’s time for another round of pointing out where those opponents and would-be regulators are all wet.
It’s too early in the day to even try to untangle what happened with FTX, but what SEEMS to have happened is a “Ponzi scheme.” That is, older investors in FTX and related enterprises such as trading firm Alameda Research seem to have been paid supposed “profits” from incoming investment revenues while the other money all went … well, somewhere.
Lots of money went to lobbyists to game government regulatory efforts. Lots of money went to Democratic and Republican campaigns and politicians. Lots of money went to expensive homes in the Bahamas. And so on and so forth. Maybe all that will come out in the wash. None of it looks very good.
And, believe it or not, none of it has anything whatsoever to do with cryptocurrency — Bitcoin, Ether, etc. — as such.
Yes, the allure of cryptocurrency was used…