Cardano founder compares Sam Bankman-Fried to Bernie Madoff.

Cardano’s founder Charles Hoskinson has compared former FTX CEO Sam “SBF” Bankman-Fried to notorious American con artist Bernie Madoff and criticized the media for granting the former FTX CEO a “free pass.”

Bernard Lawrence Madoff orchestrated the largest known Ponzi scheme in history, valued at approximately $64.8 billion. At one time, Madoff held the position of chairman of the Nasdaq stock exchange.

Hoskinson remarked that the media’s focus on SBF, despite clear evidence of SBF and FTX’s involvement in misappropriating and stealing customer assets, illustrates the extent of corruption within the entire system.

In a post on X (formerly Twitter) on Oct. 9, Hoskinson criticized the media attention surrounding SBF following the FTX collapse. He specifically called out author Michael Lewis, whose book about SBF has garnered significant media interest just days before the former FTX CEO’s trial, describing it as an “apology tour.”

The Cardano founder observed that there appears to be a “group of individuals who seek to achieve a public exoneration for SBF,” adding:

“We witnessed this with the lenient treatment by the New York Times and now a book that’s an apology tour. It’s astonishing to me that the Bernie Madoff of my generation is receiving a free pass from the media. It highlights how deeply corrupt things have become, especially if you have the right connections.”

At the time of its collapse in November 2022, FTX was the third-largest cryptocurrency exchange, having secured a multimillion-dollar funding round in the first quarter. SBF attributed the downfall to external market conditions and a liquidity crisis. However, as various U.S. enforcement agencies initiated investigations into the failed crypto exchange, they revealed a markedly different narrative.

Consequently, Bankman-Fried faced seven counts of conspiracy and fraud linked to the FTX collapse, to which he has pleaded not guilty. Judge Lewis Kaplan is presiding over the case.

The jury trial commenced last week. Testimony during the trial’s first week indicated that Alameda Research, a trading firm established by SBF prior to launching the FTX exchange, had a covert backdoor into FTX for redirecting customer funds as early as 2019.

Related: Sam Bankman-Fried goes on trial: A week in review

New revelations from the criminal trial against Bankman-Fried have disclosed that he spent millions on crafting a public persona through aggressive public relations expenditures. The former CEO allegedly compensated individuals such as Tom Brady and businessman Kevin O’Leary millions to secure a few days of their time.

“He didn’t buy a yacht, did he?”
Things SBF did purchase:
$100 million naming rights to a stadium
$25 million Super Bowl advertisement
$55 million for Tom Brady’s time
$10 million for Larry David’s time
$300 million in luxury properties
$80 million for political contributions
$30 million for private jets

— H.E. Cas Piancey (@CasPiancey) October 6, 2023

Other lavish expenditures included private jets, Super Bowl advertisements, and political donations. One passage from Lewis’ book suggested that SBF was considering offering Donald Trump $5 billion to refrain from running for office.

The initial week of the trial, which began on Oct. 3, concentrated on the disappearance of $8 billion in FTX customer funds. In addition to testimony from Gary Wang, the first week featured arguments from both the prosecution and defense, along with testimony from Adam Yedidia on Oct. 5.

Cointelegraph reporters are present in New York for the trial of former FTX CEO Sam “SBF” Bankman-Fried. As the situation develops, check here for the latest updates.

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