Billionaire VC Chamath Palihapitiya Calls FTX 'Sophisticated Con' With Lack Of Media, Regulatory Oversight

Chamath Palihapitiya, a billionaire venture capitalist, said that the now-defunct crypto exchange FTX FTT/USD was a gargantuan “financial fraud” which had a consequence for tens of millions of individuals.

What Happened: In a recent conversation on the "All-In Podcast," Palihapitiya alleged that Sam Bankman-Fried, the former FTX CEO is handling the media again with his ongoing “apology tour.”

Palihapitiya mentions that Bankman-Fried’s FTX was a “sophisticated con” that did not face any pressure from media and regulators. The tycoon believes that this was possible as Bankman-Fried was saying all the “right things” in a professional manner.

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He said that Bankman-Fried attended a premium exclusive secondary school and subsequently studied at a distinguished highly-selective private university. His parents are teachers at one of the nation's most respected progressive liberal institutions. They are part of the progressive left's elite. 

“..And what happened was, he took customer funds and all of this money, he made tens of millions of dollars of political donations, he wrapped himself in this blanket of a progressive, left-leaning cause called ‘effective altruism’ and all of the mainstream media fell for it and embraced him, as well as some politicians, because it met everything that they themselves also bought into.”

Palihapitiya said this "catastrophic occurrence" has led to an enormous financial scandal with millions of customer accounts that cannot be accessed. The estimated amount lost and taken away from them ranges from tens of millions to billions of dollars.

Price Action: At the time of writing, apex crypto Bitcoin BTC/USD was trading at $16,998, down 0.16% in the last 24 hours, according to Benzinga Pro.

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