Sam Bankman-Fried is “incapable of moving his lips without incriminating himself,” said “Black Swan” author Nassim Nicholas Taleb Wednesday.
What Happened: Taleb made the comment on Bankman-Fried, the former CEO of the beleaguered cryptocurrency exchange FTX, in a Twitter post.
In a separate tweet, Taleb compared Bankman-Fried with “garrulous characters who only show up in the middle of a Russian novel.”
Peter Steppe an author, businessman, and entrepreneur chimed in on the thread and suggested Bankman-Fried was a character out of “The Brothers Karamazov” a novel by Fyodor Dostoevsky that explores the concept of free will.
Why It Matters: Bankman-Fried appeared at the DealBook Summit on Wednesday and said, “I unknowingly comingled [customer] funds, and [Alameda Research] funds.”
Taleb has criticized cryptocurrencies and FTX FTT/USD after the exchange suffered a liquidity crisis.
The author, mathematical statistician, and former options trader said earlier in the month there was no liquidity crisis in cryptocurrencies because that is reserved for “something that has some hard intrinsic value.”
The FTX crisis caused a cryptocurrency crash that saw Bitcoin BTC/USD and Ethereum ETH/USD decline by 16.3% and 15.1% over November.
Taleb said that Bankman-Fried “got temporarily rich because he is [both] aggressive AND clueless about finance.”
Photo courtesy: FTX