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Charles Hoskinson’s Pointed Tweet On Media Bias Following Sam Bankman-Fried Sentencing

Last Updated March 29, 2024 12:53 PM
Shraddha Sharma
Last Updated March 29, 2024 12:53 PM

Key Takeaways

  • Sam Bankman-Fried was sentenced to 25 years for investor fraud.
  • Charles Hoskinson critiques media bias and manipulation in the wake of the sentencing.
  • It is alleged that the public was misled by the positive media portrayal of Bankman-Fried.

In the wake of Sam Bankman-Fried‘s 25-year prison sentence for defrauding investors, Cardano Founder Charles Hoskinson has seemingly criticized the media’s role in shaping public perceptions.

The Sentencing of Sam Bankman-Fried

Sam Bankman-Fried (SBF) was once celebrated as a cryptocurrency genius, now he has been sentenced to 25 years in prison for defrauding investors. While SBF’s legal team is reportedly preparing to appeal the conviction, the court  established that he swindled FTX investors of $1.7b, deceived his hedge fund’s lenders of $1.3b, and cheated FTX customers of $8b.

However, the defunct exchange FTX, and its associated token, FTT, came under the radar only in 2022 close to the bankruptcy.

Cardano Founder’s Criticism of Media Bias

Cardano founder Charles Hoskinson’s X post references the way the media has handled his narrative, at the same time taking a dig at SBF’s alleged donations to media outlets.

Cardano Curation Founder Caleb Montiel drew parallels between Hoskinson and SBF and noted that the former has been operating within legal bounds and maintaining transparency about his projects. He underlines that Hoskinson has been unfairly labeled as a fraudster as Bankman-Fried was lionized by the media, which contributed to misleading the public.

The Role of Influencers and Funding

Montiel alleges Bankman-Fried utilized customer funds to pay off influencers, media outlets, and politicians, thereby securing favorable coverage.

A 2022 report  by Daily Mail noted that SBF gave financial support to at least 6 media organizations, including a $5m donation to ProPublica, through his company’s philanthropic branch.

The report went on to say that the donations extended to other outlets like The Intercept, as it allegedly sought additional donors to fill this gap. A New York magazine report  revealed SBF manipulated the press by capitalizing on the financial vulnerabilities of the media industry and the lack of deep crypto understanding among journalists.

Interestingly, the media reckoning only started after the November 2022 bankruptcy of FTX.

The aftermath of FTX’s collapse and Bankman-Fried’s sentencing sparked debate about transparency and media ethics. Especially when financial damage to investors can round off to billions of dollars.

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