EXCLUSIVE: Sam Bankman-Fried Tells Benzinga His Proposal Is A Clear Win For DeFi – Crypto Influencer Says FTX CEO Is ‘Devil’ Trying To ‘Permanently Destroy’ Crypto
BitBoy Crypto founder and YouTuber Ben Armstrong pulled no punches as he ran against the top bosses in Coinbase Global COIN and FTX.
Slamming Sam Bankman-Fried over his draft proposal for crypto regulation, Armstrong, who goes by the name ‘BitBoy’, claimed the FTX boss wanted only those in “suits”, people “with deep pockets” to know and decide what’s going on in the space.
JUST IN: Crypto YouTuber BitBoy says Coinbase and FTX CEO’s are “devils” trying to “permanently destroy” crypto. pic.twitter.com/u5wDyvgIU1
— Watcher.Guru (@WatcherGuru) 20 October 2022
“… I am the one who dies, it is me. I’m out here putting in the work behind the scenes trying to save crypto while these devils – Sam Bankman-Fried, Brian Armstrong, are trying to destroy it permanently. This is not about money for me,” the influencer said in one video posted on social media.
“The framework I laid out would ensure freedom for peer-to-peer transfers, smart contracts and validators, while reducing hacks and fraud. I think it’s a pretty clear win for decentralized finance,” Bankman-Fried told Benzinga, when he was asked to comment on this. claims.
What happened: Bankman-Fried has come up with a draft regulatory framework for cryptocurrencies – a set of standards – pending full federal regulatory regimes.
However, several crypto industry experts labeled the proposed regulations “anti-DeFi” and intended to cripple decentralized finance.
Draft proposal: Bankman-Fried outlined his desire to block sanctioned addresses in his list published Thursday on FTX’s official website. He proposed a protocol that would give hackers a share of stolen cryptocurrency, as long as assets are returned and disputes are resolved.
He also outlined a three-step procedure that FTX will use to determine whether a cryptocurrency should be listed as a security.
The plans also included tokenizing shares, ensuring customers understand the basics of cryptocurrencies, and proposing an appropriateness test that would limit customers’ access to crypto assets depending on several variables, including their net worth.
Bankman-Fried added that while he favored maintaining the freedom of peer-to-peer transactions, code and validators, he believed that when marketing this software to US retailers, regulations should be in place.
He also urged the need for regulatory oversight and “up-to-date public information and audits” to confirm that dollar-backed stablecoins are indeed backed by the dollar.
Also read: Crypto Influencer Accuses Former SEC Division Director of Taking Bribes to Declare Ethereum a Commodity
Normalizing on the chain freezes “sucks”
Bankless founder Ryan Sean Adams claimed that Bankman-Fried’s proposal would put DeFi on the same level as the Office of Foreign Assets Control.
“Sam. With respect. This is absolutely sick,” Adams said, adding that this proposal would normalize freezing on the chain. “You say that DeFi frontends should be registered as a broker-dealer. No, this is not reasonable. This would eliminate the US from the crypto race.”
Cryptodetective @spreekaway (Spreek) pointed out how SBF’s ideas were incompatible with decentralization and that a real-time, ongoing blocklist would necessitate frequent updates and expose the potential for grieving “front-run” traders with “dusting” attacks.
“A real-time app-level blacklist seems completely useless to me,” Spreek said. “It will probably have to be maintained by keepers constantly updating it, and the bad guys can simply move their money to a new address and switch in the same block.”
Furthermore, Spreek asked the reasons for SBF’s motives, saying, “So, totally ineffective at stopping the bad guys, but very effective at rendering Defi useless to everyone else. Almost like there might be an ulterior motive here.”
Next: ‘Dear Government: No More Bitcoin!’ Crypto was a failure in this nation, survey says
Photo by Ben Armstrong at Wikimedia
