Several industry leaders, influencers, celebrities and politicians have expressed their thoughts on the destruction caused by the FTX crash. On December 2, Morgan Creek Capital CEO and founder Mark Yusko sat down with Kitco’s lead host Michelle Makori to explain that it is possible that the FTX co-founders could have been used as a “pawn” or “useful idiot” to “punish the industry”.
Morgan Creek’s Mark Yusko: “This fiasco is a hoax I believe perpetrated by someone above the useful fools”
Since the Terra fiasco, various theories have been circulating about LUNA and the numerous bankruptcies that followed. The recent FTX crash appears to be much more serious than all other bugs that have occurred since the Terra. There are many questions about the crash and its aftermath, and many opinions have been expressed, including those of CNBC’s Mad Money host Jim Cramer, Galaxy Digital CEO Mike Novogratz, Congresswoman Maxine Waters (D-CA), Tesla executive and Twitter head Elon Musk.
On Friday, Morgan Creek Capital Management founder and CEO Mark Yusko told Kitco’s editor-in-chief and lead host Michelle Makori that Sam Bankman-Fried (SBF) may have been a “pawn.” “They are just pieces in a very big and elaborate system that was designed to launder money,” Yusko said on the Kitco broadcast. “It is quite possible that someone intended this to be an example so that regulators could come in and punish the industry,” he added.
Yusko went on to explain that decentralized finance (also known as defi) is challenging traditional finance, which is often controlled by large banks or financial institutions, as it is not controlled by a single entity. Bitcoin (BTC) and defi concepts such as central banks and fiat currency challenge each other, Yusko informed the Kitco host. “[Blockchain] replace trust with truth,” Yusko said.
“Who are the arbiters of trust today? Financial institutions, third-party intermediaries, a $7 trillion industry,” Yusko explained. “They would rather not be disrupted by digital assets or defi. A group of incumbents may have tried to lobby for a regulation that would delay, obfuscate or alter the course of this disruption.”
It should also be noted that someone above SBF or Alameda Research’s Caroline Ellison may have been working towards a common goal, even at the expense of the cryptocurrency market. “This debacle is a hoax I believe perpetrated by someone higher than the useful fools. Those two are not playing 10D chess,” said the CEO of Morgan Creek. “Large amounts of money went to political candidates. There is evidence of [Sam Bankman-Fried] saying he was going to give a billion dollars in the next election,” Yusko added.
Yusko is a strong believer in bitcoin (BTC) and in an interview on May 6, 2020, the CEO of Morgan Creek said he expected the top crypto asset to reach $250,000 within five years. During the same interview, Yusko suggested that bitcoin prices could rise to $400K to $500K. During his interview with Makori, Yusko warned that the US could suffer from stagnation if the industry is overregulated. “If we become too restrictive in our regulations, [crypto] will move to other jurisdictions,” Yusko said. “So ultimately, [crypto] will prevail.”
What do you think? Are FTX executives seen as pawns? Let us know your thoughts on the topic by leaving comments below.
