Ethereum Vitalik Buterin, co-founder and perhaps one of the most well-known people in crypto, today harshly criticized former FTX CEO Sam Bankman-Fried.
Ethereum Founder: “FTX’s Centrality Made Its Collapse Inevitable”
At the LaBitConf conference in Buenos Aires, Argentina, Buterin said that FTX’s massive collapse was inevitable due to its centralized nature.
When asked about the collapse of FTX and other crypto companies this year, Buterin said, “We’ve seen a lot of things crash this year because they have a fundamentally bad model.”
FTX was once one of the world’s most popular digital asset exchanges, but it crashed this week and blew billions of dollars after it was revealed that the famous CEO owner, known in crypto circles as “SBF” for short, was using client deposits to make risky investments.
On Friday, SBF, once one of crypto’s richest men, filed for bankruptcy and saw his net worth drop from $16 billion to zero after his stock market crashed.
“There is confidence in a man walking around, wearing a suit and giving himself a name like ‘Bankman’,” Buterin said in a statement today, noting the advertisements for cryptocurrency celebrity SBF hanging all over San Francisco.
“It Was A Project Against Every Value Of Cryptocurrency”
Buterin noted that people are more interested in FTX’s marketing and “personal style” akin to the “dictators of the 1930s”, and that it is “a project that tries to be centralized, the opposite of every value of crypto.”
Ethereum is the second largest cryptocurrency by market cap and runs on the eponymous Ethereum blockchain. As one of its founders, Buterin is extremely well-known and, like Sam Bankman-Fried, has been criticized for the personal cult surrounding him, thus making the project more central.
Other speakers at the event chased Buterin after the Ethereum founder’s comments: Bitcoin developer Jimmy Song criticized people for “entrusting their money to Vitalik”.
*Not investment advice.
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