Former US Treasury Secretary Larry Summers thinks the recent meltdown of crypto derivatives exchange FTX is a lot like the Enron scandal.
In a new interview with Bloomberg, the famous American economist says that FTX’s implosion is probably less about the complexities of crypto regulations and more about “some very basic financial principles that go back to financial scandals that took place in ancient Rome.”
Enron was an American energy company that had a valuation of $60 billion at its peak before it went bankrupt in late 2001 after a scandal unearthed a complex web of accounting fraud within the firm.
Says Summers of both Enron and FTX,
“The smartest guys in the room. Not just financial error, but certainly from the reports, whiffs of fraud.