Yet letting crypto burn would allow the most shameless actors to gamble on a quest for resurrection. The ease of spinning out new tokens makes an attempt to return to the tables irresistible. The disgraced author of the Terra/Luna debacle, which vaporized billions of dollars overnight in May 2022, immediately returned to the market with Terra 2.0. The disgraced founders of Three Arrows Capital, bankrupted in July 2022, now want to buy up crypto users’ bankruptcy claims, funded by—you guessed it—the proceeds of a new crypto token. And those bankruptcy claims remain in limbo only because the management of such crypto firms as Celsius, Voyager Digital, BlockFi and Genesis continue to pay themselves fat salaries in Chapter 11 bankruptcy rather than liquidate their remaining assets to repay creditors. Judges and trustees should help purge the system by pressing bankrupt crypto firms into liquidation without further delay.
Crypto is part chlorofluorocarbon, part cocaine and part bearer bond. It isn’t the future of finance. More than malign neglect, the U.S. needs policies that will eliminate cryptocurrencies and their metastases.
Source: Nothing Redeems Crypto – WSJ
