Mark Cuban believes FTX founder Sam Bankman-Fried should be worried about going to jail.
“I don’t know the details, but if I were him, I’d be in jail for a long time,” said billionaire owner Dallas Mavericks. tell TMZ. “That sounds bad. I actually talked to him and I thought he was smart, but man, I didn’t know he would, you know, take other people’s money and use it for his own personal gain. Yes, that certainly…seems like what happened.”
US crypto investors Bankman-Fried earlier this month, claimed that the 30-year-old man with shaggy hair—along with the celebrities he’s joined—had engaged in fraudulent activities. The class-action lawsuit accuses crypto exchange FTX of targeting “unsophisticated investors across the country” and that their profitable accounts are unregistered securities that are sold at any time. legally in the United States, where they said investors suffered $11 billion in losses.
U.S. authorities are investigating FTX after its spectacular explosion and bankruptcy earlier this month shook confidence in the struggling crypto sector and prompted calls for renewed calls for innovation. stricter regulations.
Also named in the lawsuit are NFL legend Tom Brady, NBA star Steph Curry, and Seinfeld co-creation and Curb your enthusiasm star Larry David, who appear in advertisements for cryptocurrency exchanges (a Super Bowl ad in David’s case). FTX becomes a heavyweight in the field of sports marketing in an effort to build trust in its brand, buying the naming rights to the NBA’s Miami Heat stadium.
Former Treasury Secretary Larry Summers cited the stadium deal while compare the collapse of FTX to the Enron scandal: “Not just a financial error but—certainly from reports—signs of fraud. The naming of the stadium is very early in the company’s history. An explosion of wealth that no one understands where it comes from.”
‘Lots of Mistakes’ in Cryptocurrency
However, Cuban still believes in the potential of cryptocurrencies.
“Separate the signal from the noise,” he said. “A lot of people have made a lot of mistakes, but that doesn’t change the underlying value.”
Commenting earlier this month on the collapse of FTX and other exchanges, Cuban tweeted:
“These explosions are not crypto explosions, they are banking explosions. Lending to the wrong person, misappraisal of collateral, arrogant behavior, followed by depositors running away. See Long Term Capital, Savings & Loans, and Subprime Surges. All different versions of the same story.”
I also Share your thoughts on Bankman-Fried at a conference organized by Sports Business Magazine this month, says:
“First, you have to understand crypto. There’s speculation – it’s all the noise. Then there were things that happened to [crypto platform] Travel and with FTX now — it’s someone running a company that is both stupid and greedy. So, what does Sam Bankman do? He was just — giving me more, giving me more, giving me more — so I would borrow money, lend to my affiliate, and hope and pretend to myself that the FTT tokens have on my balance sheet will maintain their value.”
Read more: ‘Dr. Doom’ Calls Crypto ‘Gambling Corrupt’ and Rips ‘Proof of Reserves’ After FTX Crash
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