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Cardano’s Hoskinson Likens Sam Bankman-Fried to Bernie Madoff

David Pokima
Last updated: | 2 min read
Charles Hoskinson. Source: a video screenshot, Bloomberg/Youtube

Cardano’s founder Charles Hoskinson has compared the embattled co-founder of FTX to infamous ponzi scheme boss, Bernie Madoff.

In a post on X (formerly Twitter), Hoskinson stated that Sam Bankman-Fried’s actions can be likened to Bernie Madoff but the former is now getting a free pass by the media.

It’s extraordinary to me that the Bernie Madoff of my generation is getting a free pass by the media. It really does show you how profoundly corrupt things have become especially if you have the right friends.”

The Cardano founder also criticized the attention goiter from Michael Lewis’ book and the attention it can have on the trial calling it an apology tour before adding that there are groups of elite who want Bankman-Fried exonerated. 

We saw this with the kid gloves treatment by the New York Times and now a book that’s an apology tour. It’s extraordinary to me that the Bernie Madoff of my generation is getting a free pass from the media. It does show you how profoundly corrupt things have become especially if you have the right friends.”

Bernie Madoff is described as the mastermind of the largest Ponzi scheme worth $64.8 billion without initial suspicion and served as a Chairman of tech-driven Nasdaq. 

On the other hand, SBF’s FTX was the third largest exchange before its implosion in November 2022 with several allegations of misappropriation of user assets and luxury purchases.

Similar calls made by the community 

Hoskinson is not the first to make calls against sympathizers of SBF as many of such have been made following the popularity of the trial and many narratives that he had simply made a mistake. 

Pro-web3 lawyer John Deaton expressed similar views over the weekend stating that those who are sympathetic and view SBF as a well-intentioned individual are not fit to manage public wealth.

He also adds that his parents were complicit in the events while others within the community stated that people who viewed him as innocent benefited during events. 

SBF was long regarded as the hero of web3 before the fall of FTX and made several high-profile political donations some of which have been returned to the company to be distributed to creditors.

Trial and bankruptcy show luxury spending

So far, the bankruptcy team in charge of FTX has amassed $7 billion in assets to be distributed to the creditors. 

From the investigations, SBF has been accused of seven counts involving fraud based on the misuse of investor funds.

Amongst many, there are allegations of acquiring luxury items including private jets which the Department of Justice (DOJ) is seeking a forfeiture.

Other expenses include $300 million in real estate, $80 million for politicians, and millions on ads including $100 million in stadium naming rights.