Jesse Powell, the founder of Kraken, speaks out about FTX and talks about “inflated pride”

Not hiding his anger at recent events, Jesse Powell, the founder and ex-CEO of the Kraken exchange, took to Twitter to implicitly qualify Sam Bankman-Fried as a “clown” and a “crook”. According to him, it is important to detect this kind of actor in the ecosystem more quickly in the future in order to “protect cryptocurrencies”.

Jesse Powell speaks about the ambient chaos

Known for being one of the main champions of the philosophy of financial freedom inherent in Bitcoin (BTC), Jesse Powellthe former CEO of the Kraken exchange, vehemently lashed out at those responsible for the current situation.

Without explicitly citing FTX or Sam Bankman-Fried, Jesse Powell took the opportunity to group together all those he equates to malicious actors for the ecosystem, claiming the current situation was godsend for anti-crypto :

“An exchange implosion of this magnitude is a gift to Bitcoin hate everywhere. It’s the excuse they’ve been waiting for to justify the attack they’ve been keeping in their back pocket. We are going to spend years undoing this. »

In this long thread, the founder of Kraken does not mince words regarding this category of individuals, going so far as to refer to them as ” clown » or even « crooks “.

“It’s not about aiming high and missing. It’s about recklessness, greed, self-interest, hubris, sociopathic behavior that drives a person to risk all the hard-won progress this industry has made over the past decade, for his or her own profit. While already being very rich. »

The founder of Kraken is pessimistic for the future, announcing that ” the contagion would spread ” and other companies should expect to suffer a domino effect following the collapse of FTX. A scenario that is reminiscent of the collapse of Terra (LUNA) and its fallout, particularly concerning Three Arrows Capital (3AC) or even Voyager Digital.

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A foreseeable situation?

According to Jesse Powell, certain signs should have alerted to ” who was really “Sam Bankman-Fried, such as” 9-figure spending to buy political favors » (FTX was the 3rd largest donor to the Democratic Party in the last US election behind the company Uline and the Hungarian financier Georges Soros).

He also mentions ” outsized ego purchases, like 9-digit sports contracts “, or the tendency of Sam Bankman-Fried to let appear a profile of billionaire philanthropist, which the founder of Kraken describes as “ ostentatious virtue “.

Beyond FTX or Sam Bankman-Fried, Jesse Powell also points the finger at the various investment fundsthe media or the experts who have ruined their reputation by “ vouching for individuals, projects, companies that they had not controlled “. He adds :

“I know for a fact that venture capitalists blindly wrote checks. Why ? Because incomes were high. Were they durable? Were they losing money on the other side? […] Never asked. »

The ex-CEO of Kraken, however, ends on a note of hopeparticularly aimed at those harmed by recent cases:

“I pray for everyone who has been caught up in this mess. Hope this doesn’t turn you away from cryptocurrencies. I hope you take care of yourself and continue to be part of this community. These are growing pains. Money can be made again. Stay with me. »

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