SEC’s John Stark Discusses Crypto Exchange FTX Collapse on CNBC’s Squawk Box

Bullet Points:
• SEC stopped ICOs, lending programs, and agreements for future tokens
• John Stark joined CNBC’s ‚Squawk Box‘ to discuss the collapse of crypto exchange FTX
• Lack of due diligence in investments in FTX was discussed, with Stark stating that due diligence is the wrong way to invest

The former Chief of the SEC office of internet enforcement and President of John Reed Stark Consulting, John Stark, appeared on CNBC’s ‚Squawk Box‘ to discuss the collapse of crypto exchange FTX. The host raised the issue of due diligence, or lack thereof, with investments in FTX, and asked what can be done about that.

John Stark responded by quoting Sam Bankman-Fried, who said: “We don’t look at the product, service, etc…we look at whether this is an idea we can pitch to someone. If we think this is something we can sell, then we’re all in. Due diligence is absurd. It’s just the wrong way to invest.”

Stark agreed that the business model of FTX is something the public isn’t used to, but defended the state agencies, pointing out that they have won many cases, including stopping ICOs, lending programs, and agreements for future tokens. He suggested that the agencies should be ashamed of the situation in which customers have lost their money and have no claims on anything coming out of bankruptcy.

Stark further discussed the importance of due diligence when investing, stressing that investors should look for value and the long-term when investing. He also suggested that there needs to be more education and understanding of the different business models in the crypto world before investing.

Overall, Stark’s appearance on CNBC’s ‚Squawk Box‘ highlighted the need for due diligence when investing in the crypto world, and the importance of understanding the different business models. He emphasized that due diligence is the wrong way to invest, and that investors should be looking for value and the long-term when making decisions. His comments further serve to highlight the state agencies‘ success in stopping ICOs, lending programs, and agreements for future tokens, though there is still a lot of work to be done to protect investors from scams and fraud.