Wednesday, October 29, 2014

Major League Crony Now Advising Two Bitcoin Companies

Two bitcoin companies, BitPay and Vaurum, have announced that Arthur Levitt, former Chairman of the Securities and Exchange Commission, will serve as advisor to both enterprises. BitPay is the world’s largest bitcoin payment processor, while Vaurum is an institutional bitcoin exchange.

He was the longest serving chairman of the SEC and has since stepped through the gold plated revolving door.

Since May 2001 he has been  a senior adviser at the Carlyle Group and also serves as a policy advisor to Goldman Sachs and as a Director of Bloomberg.

In 1997, the SEC under Levitt's leadership approved the exemption of some Enron partnerships from the tight accounting controls of the Investment Company Act of 1940. Enorn was, of course, a spectacular failure, which took some time to become obvious as the exemption Levitt's SEC granted the company made it much easier for it to hide its true financial state.

That BitPay and Vaurum want to associate with such a character is not a good sign, and surely not a positive signal for small-time Bitcoin holders.

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