EXCLUSIVE: Bankman-Fried Trial Outcome Casts Positive Light On Blockchain Integrity, Says Wormhole Exec

The trial of FTX founder Sam Bankman-Fried is another age-old story of a financial entity defrauding its users, according to Robinson Burkey of the Wormhole Foundation.

The majority of the crypto industry will soon rejoice, Burkey predicts.

“The majority of the crypto industry is going to be excited when he's hopefully convicted,” Burkey said at Solana's SOL/USD Breakpoint conference in Amsterdam.

Burkey shared his thoughts in an interview preceding Benzinga's Future of Digital Assets conference on Nov. 14. 

Burkey's statement underscores a common sentiment within the community — that the resolution of Bankman-Fried’s case will help to distinguish the innovative technology of crypto from the unrelated fraudulent activities.

“What happened [with FTX] was pure fraud," Burkey insisted. "It had nothing to do with blockchain technology."

Burkey, who is the Executive Vice President of the Wormhole Foundation, also highlighted the robust nature of Bitcoin BTC/USD and its network's stability over the past six months, asserting the network's readiness for greater decentralized finance (DeFi) integration.

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Bitcoin is as a foundational asset, potentially backing other derivatives and serving as a reserve in a new financial paradigm, Burkey said.

"Bitcoin itself is this sovereign currency," he stated, suggesting its use in backing stablecoins due to its decentralized and trustless nature.

Defense mechanisms against DeFi hacks were also discussed. Burkey recommends the adoption of "defense in depth" security measures from Web2 to safeguard the DeFi space more effectively.

This proactive approach to security is seen as essential for fostering trust and encouraging adoption.

With education and sensible regulations, Burkey believes the industry can present a fortified front to regulatory bodies like the SEC.

"Common sense regulation without stifling innovation is definitely something that would be reasonable," he explained, envisioning a future where tightened security and informed oversight coexist.

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