- David Schwartz has rejected Forbes’s argument defending SBF’s FTX conviction.
- The Ripple executive states that good deeds cannot erase proven fraud charges.
- GENIUS Act passage has now sparked debate over SBF’s regulatory advocacy efforts.
Ripple Chief Technology Officer David Schwartz has criticized a Forbes article that questioned Sam Bankman-Fried’s criminal conviction, calling the defense “nonsense.” The article suggested the former FTX CEO received unfair treatment given his efforts to establish cryptocurrency regulations.
The article discussed SBF’s Washington lobbying activities aimed at creating stable regulatory frameworks for digital assets. The piece claimed that his time in the capital sought necessary regulatory approval for the positive development of crypto, rather than personal gain.
Schwartz Rejects Fraud Justification Arguments
Schwartz directly addressed the Forbes article, emphasizing that any positive impact from SBF and FTX doesn’t erase the clear evidence of fraud. The Ripple executive stressed that criminal actions remain unacceptable, no matter what else someone has accomplished.
Coin Center’s Neeraj Agrawal shared the Forbes article on Twitter and questioned the article’s logical premise. The tweet caused controversy from the cryptocurrency community about standards for industry leader accountability.
The Forbes article also identified FTT tokens as vehicles for sharing profits and not as conventional currency. This translates to customer funds amounting to speculation on SBF’s crypto proficiency. Further, this interpretation sought to redefine abuse of customer funds as a valid investment strategy.
Schwartz agrees with the jury verdict that found SBF guilty of using money from one business to cover losses in another. The Ripple CTO asserted that established legal standards apply even in the face of innovation or regulatory lobbying.
Regulatory Advocacy Cannot Override Criminal Conduct
The Forbes piece referenced the recent passage of crypto-friendly legislation like the GENIUS Act as justification for SBF’s regulatory approach. The argument here was that his Washington lobbying was visionary in securing crypto’s institutional future.
But Schwartz’s reply suggests that well-regarded work in regulation does not exempt one from accusations of fraud. The executive’s position maintains attempts at advocacy separate from criminal misappropriation of clients’ money.
Forbes offered remarks regarding potential presidential pardons, conjecturing SBF’s vision made his actions acceptable at the expense of legal consequences. On this interpretation, market adjustments are the predominant source of SBF’s legal difficulties and not willful malfeasance.
Schwartz’s dismissal highlights the prevailing industry sentiment that distinguishes legitimate innovation from fraudulent practices. The Ripple executive’s position emphasizes that crypto advancement requires both ethical conduct and regulatory engagement.
Related: Ripple’s RLUSD Stablecoin Earns Top “A” Rating; Here’s Why XRP Stands to Benefit the Most
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