If the victim card needs to be questioned, it’s not because it would shield Bankman-Fried from the full force of fraud charges, but because it is legally self-serving for those playing it. 3AC is undergoing its own liquidation procedure, and its co-founders are clearly eyeing a chance at redemption. The liquidators’ legal team recently noted that Davies and his fellow co-founder only started blaming FTX after the exchange’s collapse, while cautioning that the co-founders hadn’t been cooperative in meeting creditor claims.
The chances of crypto markets ever progressing beyond speculative booms and busts will be slim to non-existent without more humility, transparency and a stronger anti-fraud mindset from both regulators and participants. This in turn requires a reckoning for all institutions in the sector that today are pitching FTX as an unpredictable one-off in an otherwise healthy market. We are a long way off.
Source: FTX SBF Crypto Victim Card Won’t Be Easy to Play – Bloomberg