<br><p>Mark Cuban believes FTX founder Sam Bankman-Fried ought to be nervous about ending up in jail.</p><div>
<p>“I don’t know all the small print, but when I have been him, I’d be afraid of going to jail for a very long time,” the billionaire Dallas Mavericks proprietor <a target="_blank" href="https://www.tmz.com/2022/11/26/mark-cuban-not-jumping-ship-crypto-ftx-scandal/" rel="noopener" class="sc-bdvvtL lpozya">told TMZ</a>. “It positive sounds dangerous. I’ve truly talked to the man and I believed he was good, however boy, I had no thought he was going to, you realize, take different individuals’s cash and put it to his private use. Yeah, that positive…looks as if what occurred.”</p>
<p>U.S. crypto buyers <a target="_blank" href="https://www.nbcnews.com/business/business-news/ftx-crypto-investors-sue-founder-sam-bankman-fried-celebrity-promoters-rcna57453" rel="noopener" class="sc-bdvvtL lpozya">sued Bankman-Fried</a> earlier this month, claiming the mop-haired 30-year-old—together with celebrities he enlisted—engaged in misleading practices. The category motion lawsuit alleges crypto alternate FTX focused “unsophisticated buyers from throughout the nation” and that its yield-bearing accounts have been unregistered securities offered unlawfully within the U.S., the place it says buyers suffered $11 billion in damages.</p>
<p>U.S. authorities are investigating FTX after its spectacular implosion and chapter earlier this month shook confidence within the embattled crypto sector and fueled renewed requires tighter regulation.</p>
<p>Additionally named within the lawsuit are NFL legend Tom Brady, NBA star Steph Curry, and <em>Seinfeld</em> co-creator and <em>Curb Your Enthusiasm</em> star Larry David, who <a target="_blank" href="https://www.youtube.com/watch?v=uymLJoKFlW8" rel="noopener" class="sc-bdvvtL lpozya">appeared in commercials</a> for the crypto alternate (a Tremendous Bowl business in David’s case). <a target="_blank" href="https://fortune.com/2022/11/12/the-ftx-and-twitter-chaos-is-embarrassing-athletes-like-stephen-curry-and-tom-brady-im-not-an-expert-and-i-dont-need-to-be/" rel="noopener" class="sc-bdvvtL lpozya">FTX became a sports-marketing heavyweight</a> in its quest to construct up belief in its model, shopping for the naming rights to the NBA’s Miami Warmth stadium.</p>
<p>Former Treasury Secretary Larry Summers cited the stadium deal whereas <a target="_blank" href="https://fortune.com/2022/11/11/larry-summers-ftx-crypto-collapse-more-like-enron-than-lehman/" rel="noopener" class="sc-bdvvtL lpozya">comparing FTX’s collapse to the Enron scandal</a>: “Not simply monetary error however—definitely from the reviews—whiffs of fraud. Stadium namings very early in an organization’s historical past. Huge explosion of wealth that no one fairly understands the place it comes from.”</p>
<h2>‘Numerous errors’ in crypto </h2>
<p>Cuban nonetheless believes in crypto’s potential, nevertheless.</p>
<p>“Separate the sign from the noise,” he stated. “There’s been lots of people making lots of errors, but it surely doesn’t change the underlying worth.”</p>
<p>Commenting earlier this month on the collapse of FTX and different exchanges, Cuban <a target="_blank" href="https://twitter.com/mcuban/status/1591470047499018241" rel="noopener" class="sc-bdvvtL lpozya">tweeted</a>: </p>
<p>“These blowups haven't been crypto blowups, they've been banking blow-ups. Lending to the improper entity, misvaluations of collateral, boastful arbs, adopted by depositor runs. See Lengthy Time period Capital, Financial savings & Mortgage and Sub-Prime blowups. All completely different variations of the identical story.”</p>
<p>He additionally <a target="_blank" href="https://fortune.com/2022/11/12/elon-musk-mark-cuban-slam-ftx-sam-bankman-fried/" rel="noopener" class="sc-bdvvtL lpozya">shared thoughts on Bankman-Fried</a> at a convention hosted by <em>Sports activities Enterprise Journal</em> this month, saying:</p>
<p>“First, you’ve acquired to grasp crypto. There’s hypothesis—that’s all of the noise. Then there’s issues which have occurred with [crypto platform] Voyager and with FTX now—that’s any person working an organization that’s simply dumb as f*** grasping. So, what does Sam Bankman do? He simply—give me extra, give me extra, give me extra—so I’m gonna borrow cash, mortgage it to my affiliated firm, and hope and fake to myself that the FTT tokens which might be in there on my steadiness sheet are gonna maintain their worth.”</p>
<p>Learn additionally: <a target="_blank" href="https://fortune.com/2022/11/26/roubini-dr-doom-proof-of-reserves-crypto-exchanges-binance-ftx-collapse/?showAdminBar=true" rel="noopener" class="sc-bdvvtL lpozya">Wall Street’s ‘Dr. Doom’ calls crypto ‘corrupt gambling’ and rips ‘proof of reserves’ trumpeted after FTX collapse</a></p> </div><div><p>Our new weekly Affect Report publication will look at how ESG information and traits are shaping the roles and duties of right this moment’s executives—and the way they'll greatest navigate these challenges. <a target="_blank" href="https://mynewsletters.fortune.com/impact-report" rel="noopener" class="sc-bdvvtL lpozya">Subscribe here</a>.</p> </div><script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>