Ripple CTO Leads Crypto Backlash Against Forbes’ SBF Defense
@Roy, this matter is related to regulation, legal policy, and the ethical dimensions of fraud, so I’m assigning it to you.
@Lilly, please oversee this task, as it involves legal and regulatory scrutiny critical to the crypto market’s reputation.
Key Event: Ripple CTO David Schwartz and other crypto leaders publicly rejected a Forbes article defending Sam Bankman-Fried (SBF). The article portrayed SBF as a visionary innovator who sought to legitimize crypto but faced backlash for speculating and allegedly mismanaging client funds. Schwartz argued that innovation cannot justify fraud and criticized Forbes for downplaying the ethical and legal gravity of SBF’s actions. The crypto community strongly challenged the article's framing, emphasizing the need for accountability and lawful innovation.
Editor-in-chief,
On July 23, 2025, a Forbes contributor article authored by John Tamny sparked significant backlash from the cryptocurrency community for its defense of Sam Bankman-Fried (SBF), the convicted founder of the collapsed crypto exchange FTX.
The article, titled "GENIUS Act Passage Calls For Rethink Of Sam Bankman-Fried's Conviction," posits that SBF was "wrongly imprisoned." Tamny's argument centers on the recharacterization of FTX's FTT tokens as shares rather than traditional money, suggesting that customer funds were speculative investments in SBF's vision for the future of crypto. The piece also frames SBF's extensive lobbying efforts in Washington as a push for a stable regulatory environment, citing the recently passed GENIUS Act as evidence of his forward-thinking approach. The article goes as far as to speculate on the possibility of a presidential pardon from Donald Trump.
Ripple's Chief Technology Officer, David Schwartz, was a prominent voice in the widespread criticism, dismissing the article's defense of SBF as "nonsense." According to a July 25, 2025, report by Coin Edition, Schwartz emphasized that any positive contributions SBF might have made do not negate the "clear evidence of fraud." He asserted that illegal actions remain unacceptable, and that regulatory advocacy cannot serve as a shield for financial misconduct.
The crypto community largely echoed Schwartz's sentiments. Neeraj Agrawal of Coin Center shared the Forbes article on social media, which prompted immediate and strong negative reactions. Many questioned Forbes' editorial judgment in publishing the piece. Critics argued that the article normalizes unethical behavior under the guise of innovation. The controversy highlights the ongoing tension within the crypto industry between fostering innovation and ensuring accountability and adherence to legal and ethical standards.
@Roy, for your article, focus on clearly explaining the backlash against the Forbes article and why it’s significant. Start with the key event: John Tamny’s defense of Sam Bankman-Fried in the context of the GENIUS Act and how it provoked a sharp response from the crypto community. Avoid overloading the piece with redundant details about the article’s arguments—summarize them concisely. Highlight David Schwartz’s critique and the broader pushback, emphasizing the community’s concerns about normalizing unethical behavior. Keep the tone factual, and ensure the tension between innovation and accountability comes through as the big takeaway. Let me see a clean draft by EOD.
Ripple CTO Leads Crypto Backlash Against Forbes’ SBF Defense
- Ripple CTO David Schwartz and others reject Forbes’ controversial article defending Sam Bankman-Fried.
On July 23, 2025, Coin Edition reported that Forbes published a controversial article by John Tamny defending Sam Bankman-Fried (SBF), the convicted founder of the collapsed FTX cryptocurrency exchange. The article, titled "GENIUS Act Passage Calls For Rethink Of Sam Bankman-Fried's Conviction," argued that SBF was "wrongly imprisoned.” It framed FTX customer funds as speculative investments tied to SBF’s ambitions for cryptocurrency innovation. Tamny also highlighted SBF's lobbying for regulatory clarity, linking it to the recently passed GENIUS Act to suggest his efforts were misunderstood.
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 "nonsense," citing "clear evidence of fraud" presented during SBF's trial. Schwartz stressed that innovation cannot excuse unlawful actions or ethical violations in any industry.
Other prominent crypto figures echoed Schwartz's stance. Neeraj Agrawal of advocacy group Coin Center shared the article on social media, sparking swift condemnation. Many in the industry criticized Forbes for publishing the piece, claiming it downplayed the gravity of SBF’s legal and ethical misconduct. Critics warned that normalizing unethical practices in the name of innovation risks eroding trust and integrity in the crypto market.
The controversy highlights a deeper tension within the cryptocurrency industry: balancing innovation with accountability. Industry leaders have repeatedly emphasized that regulatory clarity must uphold ethical conduct. The widespread backlash against Forbes’ article underscores growing concerns over preserving trust and adherence to legal standards in the rapidly evolving crypto space.
