Former Treasury Secretary Larry Summers has suggested cryptocurrency exchange FTX's collapse could have similarities to energy firm Enron's scandal.
The former treasury secretary went on to list various aspects that seemingly factored into his reasoning for the comparison: "The smartest guys in the room. Not just financial error but, certainly from the reports, whiffs of fraud. Stadium namings very early in a company’s history.Enron signed a $100 million, 30-year sponsorship deal with the Houston Astros to name their stadium Enron Field.
Pictured at an interview session that is part of the Globe Summit held at the Kennedy School of Government at Harvard University is economist and professor Lawrence Summers. The cryptocurrency exchange announced Friday morning that it, Alameda Research, West Realm Series and 130 affiliated companies had filed for
. Founder and CEO Sam Bankman-Fried also resigned, with former Enron liquidator John J. Ray III taking over the role, according to the crypto exchange's press release.FTX on Wednesday, saying its corporate due diligence had raised some red flags. In this photo illustration, the stock trading graph of FTX Token seen on a smartphone screen. No Use Germany."This is probably less about the complexities of the nuances of the rules of crypto regulation and more about some very basic financial principles that go back to financial scandals that took place in ancient Rome," Summers said in the Bloomberg interview.
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