From Bernie Madoff to Bankman-Fried: Bitcoin maximalists have been validated

Long before Bitcoin (BTC), Bernie Madoff sat atop the longest-running, biggest fraud in history. The increase and real-time fall of Sam “SBF” Bankman-Fried, previous CEO of crypto exchange FTX, were sped up in contrast. While the similarities are extensive, the story is not: Create organizations under incorrect pretenses, establish relationships with people in authority positions, defraud clients, make it through as long as possible, and try not to get caught.Madoff advisors experienced a”liquidity “problem in 2008, around late November into early December, where the fund was not able to fulfill client redemption requests. On its surface area, the fourth-quarter timing of the Madoff collapse more than a decade back appears eerily comparable to FTX’s 2022 implosion. Bitcoiners who hold their keys will never ever experience a “liquidity issue,” as their Bitcoin isn’t being utilized to utilize anything else. It is the hardest cash around as long as it remains in the custody of its rightful owner.Even near the collapse, Madoff had prepared to pay $173 million in early bonuses to friends and family. When questioned by his kids on Dec. 9, 2008, Madoff confessed to the massive scams. The numbers, in numerous instances, are fractions of the scams FTX is accused of. Bitcoin maximalists continue to advise their neighborhoods that yield, third-party custodians and people can not be trusted. Satoshi Nakamoto’s white paper endures. Madoff’s sons interacted, nearly right away, with a lawyer, who advised them to get in touch with federal authorities. Madoff was detained on Dec. 11, one day after federal firms were made aware of the fraud.Related: The outcome of SBF’s prosecution could determine how the IRS treats your FTX losses On Nov. 8, Binance CEO Changpeng Zhao announced on Twitter that he tentatively meant to acquire FTX, but he rapidly reversed the decision, and a“liquidity”issue took place at FTX.

Bitcoin maximalists either watched idly, shaking their heads in shock– understanding it referred time — or just went on with their lives. Numerous maximalists may very well have been a part of Mt. Gox, which held roughly 80%of all BTC in circulation at the time it was breached. The”wake-up call “is a regrettable initiation ritual for some Bitcoiners. FTX will mint many new Bitcoin maximalists.In December, SBF was apprehended in the Bahamas. As authors and scientists, we’re positive that connections will be right away determined and explored in regard to the timing of Madoff’s arrest on Dec. 11, 2008.

As SBF faces extradition to the United States, based upon the” Treaty Between the United States and the Bahamas, “he faces sentence terms that may mirror Madoff’s, who faced a 150-year prison sentence for an arsenal of convictions. Those convictions consisted of:40 years for two counts of worldwide money laundering 20 years for one count of securities fraud 20 years for one count of mail fraud 20 yearsfor one count of wire fraud 20 years for one count of false filings with the Securities and Exchange Commission Ten years for one count of money laundering Five years for one count of investment consultant scams Five years for one count of incorrect declarations Five years for one count of perjury Five years for one count of theft from a staff member advantage strategy To provide some perspective, the longest sentences for current financial fraud include, in order: Shalom Weiss( 845 years)Norman Schmidt (330 years) Bernie Madoff (150 years)Frederick Brandau(55 years)A tie for fifth place in between Charles Lewis, Eduardo Masferrer, Chalana McFarland and Lance Poulsen, who got 30-year sentences.Based on

• the limited release files at the time of publication, SBF might
• have his name consisted of on the top 5 listed above
• — even possibly at or near the top. That would be fair considering that, to name a few allegations, his political donations may have affected or influenced U.S. political elections.Related: It’s time for crypto fans to
• stop supporting cults of character Madoff’s detainee number was 61727-054. Keep in mind that these unusually hyphenated 8 digits weren’t representative of an account number,
• an SEC filing record or some secretive monetary code; the numbers were Madoff’s previous prisoner number at Federal Correctional Complex, Butner. If and/or when the time comes, SBF might be remembered by a similar numerical worth rather of a cheeky three-letter moniker (“SBF “)
• . Time will tell. Keep in mind, Madoff pleaded guilty and still received 150 years, ultimately passing away while in custody. Bitcoin > allurements Let’s be clear: Not your keys, not your coins. Stop providing your hard-earned money and Bitcoin to “trusted “third parties.

Whether SBF invests a day in jail, or numerous lifetimes, the future of SBF suggests nothing to Bitcoin maximalists. In reality, if SBF walks totally free, the occasion will only confirm a greater Ponzi plan that Bitcoiners are well aware of. Bitcoin maximalists continue to preach, and occasions such as the collapse of FTX(among various other exchanges)are dire reminders of Nakamoto’s words that began the introduction of Bitcoin’s white paper :”Commerce on the Internet has concerned rely almost specifically on banks functioning as trusted third parties. […] While the system works well sufficient for most deals, it still suffers from the intrinsic weaknesses of the trust based model.”

There were and continue tobe lots of lessons to be discovered when analyzing the greed, absence of empathy and general corruption humans have actually experienced throughout history; and as occasions of this magnitude unfold, at the heart of every failure is trust– or an absence thereof. Bitcoin’s market capitalization from 2013-2023.

Source: CoinMarketCap Bitcoin’s proof-of-work model– including but not restricted to how deals occur, timestamps are tape-recorded, hash rates change, the network broadcasts nodes, rewards are rewarded, confirmation occurs and privacy is encoded– is the service numerous Bitcoiners have come to bask in. The trust lies in the procedure instead of in individuals.

Time and time once again, a damaged world and dishonest actors make the case for a trustless system.Related: From the NY Times to WaPo, the media is fawning over Bankman-Fried No matter how well-regulated, created or engineered future financial systems, exchanges or”cryptocurrencies” claim to be, they all have the very same failure point: human nature and greed. Bitcoiners understand this, and as many more become conscious of monetary scams– whether affected directly or indirectly– Bitcoin continues to become the most obvious option. SBF may teach a new generation of” investors “the very same difficult lesson their parents learned: When something is too good to

be true, it typically is. The failure of FTX is not a surprise, nor are the potential connections between SBF and high-ranking officials. The fact that punishments may not fit the crime(s)shouldn’t come as a surprise, either.