Ark Invest founder Cathie Wood has condemned disgraced FTX founder Sam Bankman-Fried (SBF) as representing the opposite of what blockchain should be.
“His company was completely opaque, non-transparent and centralized,” she stated.
Cathie Wood advises against associating SBF with Crypto
During a recent speech at the AI, Web3 and Real Estate Summit, Wood explained that despite blockchain’s anonymity, the technology offers completely transparent activity on the chain:
“While blockchain technology and public blockchain are completely transparent, they may be pseudonymous, but you can see the activity on the chain.”
Wood emphasizes that crypto and blockchain should not be underestimated because of FTX. Furthermore, she states that the overarching technology significantly improves safety and risk mitigation:
“Decentralization increases the security of the blockchain,” she added.
Despite Wood’s generally optimistic view of crypto, recent reports indicate that when Bitcoin experienced a price increase, she decided to sell some of her crypto investments, including her positions in Coinbase and Grayscale Bitcoin Trust (GBTC).
Learn more: 51% Attacks on the Blockchain Explained: What are the Dangers?
Sam Bankman-Fried is awaiting sentencing
This follows recent reports of SBF’s conviction on all seven fraud charges related to defrauding FTX customers. This happened when the stock market collapsed in November 2022.
On November 3, a twelve-member jury returned a guilty verdict for SBF. This came after prosecutors accused him of embezzling $8 billion from the exchange’s clients, allegedly motivated by pure greed.
U.S. District Judge Lewis Kaplan set SBF’s sentencing date for March 28, 2024.
However, SBF’s legal team plans to appeal the verdict. SBF has consistently pleaded not guilty at trial and proven its innocence regarding the billions of dollars in lost FTX customer funds.
Learn more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell