Ripple CTO Leads Crypto Backlash Against Forbes’ SBF Defense

• Ripple CTO David Schwartz and others reject Forbes’ controversial article defending Sam Bankman-Fried.
• The controversy highlights the industry's tension between innovation and ethical accountability.

On June 23, 2024, Forbes published a controversial opinion piece by contributing writer Steven Salzberg. The piece, titled "The SBF Case Cries Out for a Second Look," defended Sam Bankman-Fried (SBF), the convicted founder of the collapsed FTX cryptocurrency exchange, arguing that he was "unjustly convicted.” Salzberg portrayed FTX customer funds as venture capital-style investments, suggesting that users understood the high-risk nature of their deposits.

The cryptocurrency community fiercely criticized the piece, rejecting its portrayal of SBF’s actions as visionary. Ripple’s Chief Technology Officer David Schwartz called the defense "utter nonsense," citing the "overwhelming evidence of blatant, unambiguous fraud" presented during SBF's trial. He argued that innovation should never be a shield for illegal activities or ethical lapses.

Other prominent crypto figures echoed Schwartz's stance. For instance, when Neeraj Agrawal, communications director at the crypto advocacy group Coin Center, shared the article on X (formerly Twitter), it sparked swift condemnation. Many in the industry criticized Forbes for publishing the piece, claiming it downplayed the gravity of SBF’s legal and ethical misconduct. As a result, critics warned that normalizing unethical practices in the name of innovation risks eroding trust and integrity in the crypto market.

This controversy highlights a deeper tension within the cryptocurrency industry regarding the balance between innovation and accountability. Industry leaders have repeatedly emphasized that regulatory clarity must uphold ethical conduct, and the widespread backlash against the Forbes article underscores growing concerns about preserving trust and adhering to legal standards in the rapidly evolving crypto space.