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

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

Cryptocurrency Jan 11, 2023 09:20PM ET

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

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Long before Bitcoin (BTC), Bernie Madoff sat atop the longest-running, largest fraud in history. The rise and real-time fall of Sam “SBF” Bankman-Fried, former CEO of crypto exchange FTX, were expedited in comparison. While the similarities are profound, the storyline is not: Create organizations under false pretenses, develop relationships with people in authority positions, defraud clients, survive as long as possible, and try not to get caught.

Madoff advisers experienced a “liquidity” problem in 2008, around late November into early December, where the fund was unable to meet client redemption requests. On its surface, the fourth-quarter timing of the Madoff collapse more than a decade ago appears eerily similar to FTX’s 2022 implosion. Bitcoiners who hold their keys will never experience a “liquidity problem,” as their Bitcoin isn’t being used to leverage anything else. It is the hardest money around as long as it stays in the custody of its rightful owner.

Bitcoin's market capitalization from 2013-2023. Source: CoinMarketCap

Kenneth Minesinger is a professor of law at California Baptist University. He obtained his J.D. from Western State University College of Law after completing his undergraduate career at California State University at San Bernardino.

Dr. Riste Simnjanovski is a professor of public administration at California Baptist University. He obtained his doctoral degree from the University of La Verne.

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