Five Questions with Ben McKenzie: Crypto and Sam Bankman-Fried

Ben McKenzie is someone who needs no introduction, an actor known for his roles on The O.C., Southland, and Gotham. But what you may not know is that McKenzie is also, based on years of research, an outspoken critic of cyptocurrency. In July of this year, he published Easy Money: Cryptocurrency, Casino Capitalism, and the Golden Age of Fraud along with his co-author, journalist Jacob Silverman. And most recently, he’s been in federal court in New York for much of the trial of Sam Bankman-Fried, who was convicted on Thursday of fraud for stealing at least $10 billion from customers and investors in his business FTX.

Ben McKenzie

Bankman-Fried’s conviction has more to do with garden variety fraud than with cryptocurrency itself. But it’s a fascinating case, and the trial spoke loudly about a jury’s ability to hear the evidence before it and convict a man who was previously cloaked in both wealth and power. Bankman-Fried’s run included a stint testifying before Congress, a much-vaunted Super Bowl ad and a dream of running for the presidency. Could there be a parallel in his downfall to that of Donald Trump?

U.S. Attorney Damian Williams said after the verdict that Bankman-Fried “perpetrated one of the biggest financial frauds in American history, a multibillion dollar scheme designed to make him the king of crypto…But here’s the thing: The cryptocurrency industry might be new. The players like Sam Bankman-Fried might be new. This kind of fraud, this kind of corruption is as old as time and we have no patience for it.” Williams also said, without naming any names, that the case should serve as a warning to every other fraudster who “thinks they’re untouchable, that their crimes are too complex,” or that they are too powerful to be prosecuted. He promised he would “have enough handcuffs for all of them.”

Ben McKenzie has an undergraduate degree in economics and a long time interest in cryptocurrency, including studying blockchain with leading economists. He has published numerous articles in addition to his book, and has an ability to explain surrounding issues so that people like me can understand them. You can see more of his work here. I’m extremely grateful he took time out of his schedule to join us as tonight’s guest and help us better understand these important issues.

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