Chamath Palihapitiya calls the FTX collapse a clever con
Chamath Palihapitiya, a billionaire venture investor, describes the failed cryptocurrency exchange FTX as an “enormous financial scam” that affected tens of millions of individuals.
Palihapitiya claims in a recent appearance on the All-In Podcast that disgraced former FTX CEO Sam Bankman-Fried is manipulating the media with his current “apology tour”.
“[Bankman-Fried] attended the ideal private elite high school. Afterwards, he attended one of the most prominent private elite institutions. His parents instruct administration of all things at one of the nation’s most prestigious liberal universities. They are members of the progressive left’s establishment.
And what transpired was that he took customer funds and all of this money, he made tens of millions of dollars in political donations, he wrapped himself in this blanket of a progressive, left-leaning cause called ‘effective altruism,’ and the entire mainstream media fell for it and embraced him, along with some politicians, because it matched everything that they themselves believed.
And now you have this apocalyptic event, a multibillion-dollar fraud or bankruptcy, along with millions of blocked consumer accounts. Tens of millions to hundreds of millions to billions of dollars lost and stolen from them, and they refuse to re-underwrite this child because doing so would be like “biting your own tail.”
According to Palihapitiya, Bankman-Fried devised a “sophisticated scam” that was not challenged by reporters or authorities. This lack of pressure is attributable to Bankman-Fried saying “all the right things,” according to the millionaire.