While Crypto Bro scammed clients, reporters scammed readers.
by Ari Paul, FAIR
Today, you probably know who Sam Bankman-Fried and FTX are, and the details of why he and his company are front-page news are emerging at an amazing pace. Here’s the short version: Bankman-Fried—a boyish-looking cryptocurrency baron known commonly as SBF—announced that his lauded cryptocurrency exchange, FTX, had lost at least $1 billion in client funds, sending the crypto market into a tailspin (Fox Business, 11/16/22). The company, once the third-largest cryptocurrency exchange (AP, 11/16/22), has filed for bankruptcy. Lest one think this is a debacle that only affects crypto bros, Treasury Secretary Janet Yellen warns that “the sector’s links to the broader financial system could cause wider stability issues” (New York Times, 11/17/22).
How could this happen? How could no one have seen this coming? These are the questions many people are asking. One problem is that in the months leading up to Bankman-Fried’s transition from financial genius to possible financial criminal (Yahoo Finance, 11/14/22), he received little scrutiny in the media. On the contrary, he was celebrated.
Among the silliest suck-ups came from the New York Times (5/14/22), in which David Yaffe-Bellany, the paper’s cryptocurrency correspondent, said that Bankman-Fried’s “pragmatic style” came from his parents, who “studied utilitarianism, an ethical framework that calls for decisions calculated to secure the greatest happiness for the greatest number of people.” Yaffe-Bellany added that “Bankman-Fried is also an admirer of Peter Singer, the Princeton University philosopher widely considered the intellectual father of ‘effective altruism.’” (Singer has been criticized for his eugenics-like approach to disability—FAIR.org, 1/20/21.)
Recent Posts
Trump Says “Enough”—But Israel Pushes on in Lebanon War Latest
Take Action Now The current 10-day ceasefire between Israel and Lebanon has already shown signs of strain. While some displaced civilians have begun…
On Tax Day, Mamdani Taxed the Rich
Take Action Now The mayor, his supporters, and public opinion convinced their previously reluctant governor to agree to a tax on the second (or…
The Winner at the DNC’s Latest Meeting? Israel, Ethnic Cleansing and Genocide
Take Action Now A panel named the Middle East Working Group gummed up all efforts to align the DNC with the views of most Democratic voters, even…
Will Youth Prisons Be Found Only in History Books?
Take Action Now At least two-thirds of youth prisons and jails have been shut down. This is an enormous, dramatic, positive development in an era…