In the process of creating a new Cryptocurrency utopia of sorts, Kathleen Breitman thought they held the secret to building a new decentralized network that would work for everyone. But on the way they delved into a new type of unforeseen hell. A real-life cryptocurrency tragedy that had three distinctive acts, no one could see coming.
One day back in the Spring of 2010, Kathleen McCaffrey was attending New York University. She received a very real invitation from a stranger by the name of Arthur Breitman. He attempted to convince her to join his monthly political luncheons designed for classical liberals.
He wasn’t typically the type of person to reach out socially, but he made a fast reach out to McCaffrey the first time he met her. It turned out the meetups where geared towards anarcho-capitalists – people who are against regulations in the market place. But by the time McCaffrey realized she was taken for a ride, they’d already hit it off. He then went on to loan her a book on freedom, by Patri’s father.
To keep her close, Breitman held a last-minute party at his run down financial district apartment. The next day, in the morning he sent a text declaring he’d reserved the right for a table for two to take her out for the evening.
Even though there were some major differences between the two, when it came to background and temperament – he was inspired. Kathleen was different, extremely animated, fast tongued smart and very dedicated. They were both perfect for what was to come or so they thought. With backgrounds in philosophy and economics, the two were quite a pair.
As for Arthur, he was retiring, a bit different than Kathleen and had grown up in North Jersey. He was softer, with a big grin, one that was easy to look at. They both came from wildly different backgrounds, raised in different ways, and came from completely different places. Arthur worked in a Goldman Sachs’ high frequency trading shop.
Arthur was older than Kathleen, she was eight years his Junior. And he took notice to her academic work. Later he insulted her, but she got over it. He wasn’t taken by her youth, but all the same they admired each other deeply.
When she moved to Cornell, she changed her schedule. They went through several personal experiences while developing a relationship. After a lot of personal changes, they both took notice to Bitcoin and more importantly the Blockchain and how different it was, as well as important. They took notice to the decentralized nature and developed new ways to bring in investors for different agencies they set up. Point out the cost of using centralized networks, basically like paying rent. The blockchain offered a new opportunity.
After a length of time studying blockchain technology, getting married and studying. Arthur essentially consumed the entire Ethereum Blockchain. He ran out all sorts of reports and papers, but unfortunately, they had flaws, trying to point out Arthur’s experience that wasn’t actually real.
A lot of people didn’t pay attention, then the ICOs popped up and they were new crowdfunding models. There were shortcuts he saw and decided to take, they involved different currencies like Ethereum. Different projects started to take place, some of them leading to a scandal that would eventually become the world’s biggest cryptocurrency scandal.
The main issue happened with the company Tezos. It included security issues that were taken notice of by the SEC. They launched investigations into the partners and the company and requested they return all the Bitcoin and Ether they received. They are now defendants in a bunch of class-action lawsuits, for those people who are looking for relief from some of the ICOs launched with Tezos.
The two talked about how these were donations, but that didn’t hold up and they eventually went rogue. Leading to the biggest scandal in cryptocurrency history. The entire board of the company, even their president eventually resigned. And new faces were added to the board. In July of 2017, the company raised the equivalent of $232 million dollars. And now, those holdings would be worth nearly $772 million.
The scandal is now being seeing on publication sites and tech websites like Wired. It’s called the biggest scandal in Cryptocurrency history and this is only a portion of the whole story.