(NewsInsights.org) – Trust in the overall market concept of cryptocurrency took a significant hit in November 2022, when Crypto giant FTX failed soon after CEO Sam Bankman-Fried resigned amidst questions of mishandling of funds and an attack in which a hacker stole hundreds of millions in tokens. On November 2, a federal jury found Bankman-Fried guilty of seven charges, including wire fraud, securities fraud, and money laundering. Then, on November 7, crypto platform company Coinbase announced the addition of four Washington, DC, heavyweights with experience in crypto, commerce, intelligence, and national security to reassure investors.
Former Rep. Stephanie Murphy (D-FL), former Defense Secretary Mark Esper (R), lobbyist David Urban, and former Homeland Security Adviser Frances Townsend will join the ranks of former Congressmen — Senator Patrick Toomey (R-PA) and Representatives Tim Ryan (D-OH) and Sean Patrick Maloney (D-NY) — who, in May, became part of the Global Advisory Council to lend their expertise in various financial and security specialties.
Faryar Shirzad, Coinbase’s chief policy officer, told The Hill the company appreciated the leaders’ involvement and insights in helping Coinbase to become and remain “the world’s most trusted” digital asset platform.
Coinbase recently joined others in announcing it would liquidate Bitcoin SV (BSV) funds from users’ accounts following a long-running controversy surrounding Dr. Craig Wright, the Australian businessman and computer scientist who has claimed the pseudonym Satoshi Nakamoto and claimed to have created Bitcoin along with others in a team. BSV stands for Bitcoin “Satoshi’s Vision.”
Further calling crypto platform credibility into question, Wright became involved in several legal actions beginning in 2018, including charges that he defrauded the estate of his business partner, Dave Kleiman, of bitcoins and intellectual property rights. Kleiman, a paraplegic computer wizard and forensics expert, died in 2013, but his estate sued Wright in 2018 for more than $5 billion in Bitcoin.
Binance, another crypto exchange company, delisted BSV in 2019, responding to fraud charges against Wright. Many other platforms followed suit.
Coinbase continues to look for opportunities to rebuild trust in the crypto trading platform by creating secure, vetted mechanisms.
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