HomeCrypto NewsMarketNovogratz Calls for SBF Prosecution, Says Bitcoin Will Recover

Novogratz Calls for SBF Prosecution, Says Bitcoin Will Recover

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Mike Novogratz has called for the prosecution of SBF, noting that the crypto industry will recover from the effects of the FTX implosion.

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Michael Novogratz, CEO of Galaxy Investment Partners, recently weighed in on the latest remarks from Sam Bankman-Fried in his interview at the New York Times’ DealBook Summit, calling for the FTX founder’s prosecution and possible arrest, and asserting that bitcoin and the crypto industry will recover from the damaging effects of the FTX debacle.

“Listen, Andrew, this is a young guy who is certainly in distress. It was delusional. Let’s be clear: Sam is delusional about what happened and his culpability in it,” Novogratz remarked in a CNBC Squawk Box interview with host Andrew Sorkin. Sorkin had requested Novogratz’s opinion on the recent comments made by SBF at the DealBook Summit.

Recall that SBF was virtually present at the New York Times’ DealBook Summit yesterday as he answered questions regarding the FTX implosion. While the former FTX Chief admitted that he “screwed up,” he claimed his intentions were pure. SBF mentioned that he had close to nothing to his name anymore but claimed affected customers could be “made whole” without revealing any efforts being put into achieving that.

Speaking on the comments, Novogratz asserted that SBF is unlikely to be the only culprit in the FTX situation, claiming that all the individuals involved “perpetuated a large fraud.” He then expressed his desire to see the appropriate authorities get to the bottom of what happened and arrest those involved. “He needs to be prosecuted. He will spend time in jail,” Novogratz said.

 

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Furthermore, the 58-year-old American investor highlighted the importance of disentangling the FTX saga and bringing all the culpable individuals to book. According to him, this would be good for cryptocurrency and “all markets.” 

Novogratz noted that all financial markets work on the principle of trust, and breaking such trust triggers questions in all spheres of the financial scene. He further mentioned that although SBF appears to be a kind individual, he keeps “spewing more lies.” Novogratz concluded by calling for the prosecution of SBF and everyone involved in the FTX collapse. “What they did was criminal, and they need to be prosecuted for it,” he added.

Novogratz Believes Bitcoin and the Crypto Industry Will Recover

Mike Novogratz further discussed the state of bitcoin and broader cryptocurrency markets, speaking on the effects of the FTX saga. According to him, the bitcoin and cryptocurrency markets will recover from the damaging effects of the FTX contagion. 3

“As painful as this is for our industry […] I do think, in the long run, it becomes a, ‘what doesn’t kill you makes you stronger; and this is an opportunity for growth,” Novogratz said.

 

The Galaxy Chief mentioned that the cryptocurrency scene consists of two distinctive sides: “the money crypto” and “the on-chain crypto.” According to Novogratz, the money crypto aspect of the industry pertains to regulated firms and institutional investors, such as his firm Galaxy, which remains regulated by the appropriate authorities.

He forecasted a further surge in crypto institutional adoption, with firms who have established their unique positions at the money side of crypto making moves bordering on the necessity of transparency. Novogratz highlighted Galaxy’s recent actions, which involved transparently disclosing their exposure to FTX and the recent proof of reserves disclosures from crypto platforms.

Recall that on November 9, as the FTX situation progressed, Galaxy Digital revealed that they had exposure to the collapsed firm to $76.8M. Additionally, several exchanges such as Binance, Crypto.com, and Gate.io have revealed their proofs of reserves to encourage transparency in the industry and prove that they are not insolvent.

According to him, the on-chain crypto, which Novogratz called the tech side of the cryptocurrency scene, remains largely unregulated. “On the on-chain crypto, a separate set of regulations needs to be seen there. It’s a very big different group, but you’re going to see more people start migrating that way,” he noted.

Novogratz further highlighted that the cryptocurrency markets would have been faring much better without the FTX collapse. Nonetheless, he mentioned that he doesn’t believe bitcoin is going away, noting that millions of individuals are already interested in the scene. They are unlikely to change their minds.

“Digital asset is inevitable, and they will be part of our future. And that’s why you don’t see the institutions backing away. Like, Fidelity is not saying, ‘Oh my goodness, we made a mistake,’ they are doubling down at this point,” Novogratz concluded.

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Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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