Number Go Up: A Conversation with Author Zeke Faux
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Why was Zeke Faux's book 'Number Go Up' used in Sam Bankman-Fried's trial?
The book was used as evidence in Sam Bankman-Fried's trial because it contained statements he made to Zeke Faux during an interview in the Bahamas. These statements contradicted his testimony in court, and the prosecutor used the book to challenge the inconsistencies in his story.
What was Sam Bankman-Fried convicted of?
Sam Bankman-Fried was convicted of fraud and related crimes for orchestrating a years-long scheme that diverted $8 billion from customer accounts to fund venture capital investments, political donations, and real estate acquisitions. He is currently serving a 25-year sentence.
What is the main focus of Zeke Faux's book 'Number Go Up'?
The book chronicles the rise and fall of the cryptocurrency industry, focusing not just on the technology but also on the people, psychology, and human costs involved. It is a globetrotting investigation that explores the global impact of crypto, including its role in criminal activities and its effects on unexpected victims.
What is Tether, and why is it significant in the crypto world?
Tether is the largest stablecoin, with each token supposed to be backed by one real dollar. It plays a crucial role in the crypto ecosystem by acting as a bridge between fiat and cryptocurrencies, especially in the early days when crypto exchanges had trouble with banking. However, there have been persistent questions about whether Tether actually holds the reserves it claims.
What is 'pig butchering,' and how is it related to crypto?
'Pig butchering' is a scam where fraudsters befriend victims, often through wrong number texts, and convince them to invest in fake crypto trading apps. The scammers use crypto, particularly Tether, to move funds because it is harder to trace and reverse transactions compared to traditional banking. Many of the scammers are themselves victims of human trafficking, forced to work in fortified compounds in places like Cambodia and Myanmar.
What was the outcome of El Salvador's adoption of Bitcoin as legal tender?
El Salvador's adoption of Bitcoin as legal tender has largely been a failure. The rollout was plagued by technical issues, and most citizens and merchants did not adopt it. Despite initial hype, the experiment did not lead to widespread use of Bitcoin, and many of the promised projects, like a Bitcoin city and a Bitcoin mining volcano, have not materialized.
What is Zeke Faux's perspective on the future of crypto?
Zeke Faux is pessimistic about the future of crypto, noting that despite 15 years since Bitcoin's invention, it has not found widespread utility beyond gambling and illegal activities. He believes that while crypto may continue to attract speculative interest, it lacks the fundamental value or utility needed for long-term success.
What role did Tether play in the crypto ecosystem during the 2022 crash?
During the 2022 crypto crash, Tether remained stable despite widespread failures in the industry. Over $10 billion in Tether was redeemed by users, and the company managed to meet these redemptions, which increased confidence in its reserves. However, Tether has also been linked to facilitating illegal activities, such as evading sanctions and enabling criminal transactions.
What was Zeke Faux's experience interviewing Sam Bankman-Fried?
Zeke Faux interviewed Sam Bankman-Fried in the Bahamas shortly after FTX's collapse. Bankman-Fried admitted to certain actions that later contradicted his trial testimony, which led to Faux's book being used as evidence in the trial. Faux described the interview as ill-advised for Bankman-Fried, given the likelihood of his impending legal troubles.
What is the significance of the 'Number Go Up' concept in crypto?
The 'Number Go Up' concept refers to the idea that rising crypto prices attract more buyers, which in turn drives prices even higher. This self-reinforcing cycle is often compared to a pyramid scheme. Despite its speculative nature, the concept has become a central theme in the crypto world, with many embracing it as a positive force for growth.
- Zeke Faux's book, Number Go Up, was used as evidence in Sam Bankman-Fried's trial.
- Bankman-Fried's statements to Faux contradicted his testimony.
- The book serves as a key record of the crypto boom and bust.
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