Why Could Ripple's CTO Have Created Bitcoin?

Since the beginning of November, the FTX case is still very present in the memories. In the media, many personalities gave their views on the matter, the majority attributing the responsibility for this fiasco to the management team of the company, in this case Sam Bankman-Fried. For his part, David Schwartz, the CTO of Ripple, recently embarked on an FTX autopsy exercise. He singled out three major points that would have driven the crypto exchange out of business.

In addition to these points, he discusses the fraud and incompetence of FTX officials

At the end of last week, David Schwartz, the CTO of Ripple, pronounced on the FTX case. He listed three things that have “Horribly wrong” for the company and which led to its downfall. The first is the fact that the fiat assets of FTX customers were left in Alameda accounts and used by the latter. The second is the mixing of FTX client deposits with speculative assets. The last concerns the disproportionate risk-taking of Alameda and FTX. Here, David Schwartz indicates that there is every reason to believe that there was no effective risk management strategy.

Additionally, David Schwartz believes that FTX’s collapse was the result of executive incompetence and fraud. For him, nothing can disengage the responsibility of SBF, as some personalities in the crypto industry would like. To this effect, he evoked a scenario in which FTX would have been the victim of bad luck. He envisioned that during a long bear market, bad luck can cause a lot of companies to go out of business. But that still couldn’t clear SBF, he said.

Ripple’s CTO opinion

As for the people trying to protect SBF, Schwartz went after Kevin O’Leary. The latter recently declared that it must be considered that SBF did not commit a crime, but rather made mistakes. He also said he still trusts the crypto entrepreneur.

“Maybe his thinking is, ‘a lot of people lost a lot of money during the bear market. But SBF made sure I did well, so I would do business with him again. I’m not sure there’s another possible explanation.”wrote Schwartz.

For David Schwartz, there is no doubt. SBF is totally responsible for FTX’s situation today. He continues that there is no evidence that there was any error in the management of the assets of the crypto exchange.

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