Ripple CTO Jumps in Support of Sam Bankman-Fried
David Schwartz, Ripple Labs’ chief technical officer and co-founder of XRP Ledger & XRP, has rushed to Twitter to protect the integrity of FTX founder Sam Bankman-Fried. SBF revealed earlier today that he declared bankruptcy for both FTX and Alameda Research, sending the BTC price lower than $17,000 along with the entire crypto market. Whereas many on Twitter are already making comparisons FTX to Madoff’s Ponzi scheme, Ripple’s CTO feels there are major, obvious distinctions. Nonetheless, he agrees that FTX was a Ponzi scheme.
Bankman-Fried Files Bankruptcy for FTX and Alameda
Schwartz considers that, except for Bernie Madoff, who established the biggest Ponzi in history worth roughly $65 billion. Sam Bankman-Fried appears to have begun FTX as a lawful virtual currency firm and then slowly transformed it into a tower. Meanwhile, Madoff started a Ponzi on purpose, possibly hoping to later replace it with a real company. He considers that FTX started to devolve into a Ponzi scheme when the Alameda Research company, which was tied to it, started losing funds. Another possibility could be that the developer of FTX wished for it to be more successful.
Related: Does Ripple Really Want to Save Celsius?
Whatever the case, David Schwartz feels SBF placed his crypto exchange in danger, first to raise profits and subsequently merely to keep it afloat. Another distinction between the two Ponzies is that Madoff forced individuals to make a loss from the start, whereas Sam Bankman-Fried borrowed client sums that he had not intended to use in this manner. Sam Bankman-Fried has recently disclosed that he has declared bankruptcy for FTX & Alameda. This action dropped BTC’s price under $17,000 and back to pre-2017 highs.
As the Price of XRP Starts to Recover, Ripple Aids In The Transfer of Nearly a Billion XRP
Whale Alert shared a series of tweets demonstrating that whales and Ripple have been transferring massive amounts of XRP, beginning around 30 to 40 m XRP and finishing at 307 m. A whale transferred 173,549,000 from Binance to Bittrex. 306,938,016 XRP moved from one unidentified wallet to the other. Ripple transferred 100,000,000 XRP toward its reserve wallet RL18-VN to move it later to the external wallet owned by Ripple.
The address is often used to transmit XRP outside the firm, such as to exchanges or cryptocurrency custodians like BitGo, or to Ripple’s clients, including financial firms and ODL hallways operating globally. At the present exchange rate, the overall value of the sent XRP coins is USD 300,193,759.
