TLDR
- Ripple CTO David Schwartz dismissed the Forbes article defending Sam Bankman-Fried’s actions.
- He stated that lobbying for regulation does not excuse criminal misuse of customer funds.
- The article claimed SBF acted in crypto’s interest, but Schwartz called this narrative misleading.
- Schwartz supported the jury’s verdict that found SBF guilty of financial fraud.
- He emphasized that innovation in crypto must still follow established legal standards.
Ripple CTO David Schwartz has criticized a recent Forbes article defending Sam Bankman-Fried’s (SBF) actions during his time at FTX. The article questioned the fairness of SBF’s conviction and highlighted his regulatory lobbying efforts in Washington. However, Ripple CTO David Schwartz called the defense baseless and emphasized the severity of the fraud committed.
SBF’s Regulatory Push Does Not Excuse Criminal Misconduct
The article credited Sam Bankman-Fried for his push toward clearer crypto regulations and stable industry frameworks. It claimed his lobbying served the digital asset industry rather than personal interests or illicit gains. Still, Ripple CTO rejected this interpretation, stating that lobbying does not cancel out criminal activity.
He maintained that using customer funds without consent breaches established financial laws, regardless of one’s broader objectives. The Ripple CTO supported the jury’s verdict, which found SBF guilty of diverting funds to cover corporate losses. He noted that positive outcomes do not erase the presence of fraud.
It's nonsense. All the good things in the world that SBF and FTX might have been doing don't erase the bad things we know were done and the fraud that we know took place.
— David 'JoelKatz' Schwartz (@JoelKatz) July 25, 2025
Although SBF supported the GENIUS Act and other crypto-friendly bills, Schwartz stressed that legal boundaries remain essential. Regulatory contributions must not be used as excuses for breaking the law. Ripple CTO stated that innovation must comply with existing financial standards.
Ripple CTO Highlights Ethical Divide in Crypto Leadership
The cryptocurrency community has debated the Forbes article’s framing of SBF’s intentions and actions. Coin Center’s Neeraj Agrawal shared the article, sparking online discussions about ethics and accountability. While the article focused on SBF’s regulatory aims, critics found the logic flawed and misleading.
Ripple CTO David Schwartz made it clear that achievements in advocacy do not grant immunity from prosecution. He stated that financial misconduct cannot be reframed as strategic innovation. Furthermore, the use of FTT tokens as profit-sharing instruments did not justify customer fund misuse.
Schwartz criticized any attempt to interpret fraud as part of a broader investment strategy. He said that legal violations remain serious, regardless of how market players frame them. The Ripple CTO urged that all industry leaders be held to consistent ethical standards.
The Forbes article also discussed potential pardons, suggesting SBF’s vision might outweigh his legal liabilities. However, many industry participants rejected this idea, calling it irresponsible and misleading. Ripple CTO Schwartz asserted that such views damage trust in the crypto ecosystem.
