Crypto Companies & Influencers Defend Taking Million$ in Government Coronavirus PPP Loans

TL;DR: If no atheists exist in foxholes, maybe there are no crypto-anarchists during a once-in-a-century pandemic. The US government’s Small Business Association Paycheck Protection Program (PPP) came about through legislation aimed at responding to coronavirus. It turns out, cryptocurrency-related companies participated, taking millions, causing some to accuse them of hypocrisy. 

Crypto Companies & Influencers Defend Taking PPP Loans

BTC maximalist and influencer sidekick Stacy Herbert noted with a bit of outrage “crypto companies who have received more than $1 million from US taxpayers in ‘forgiveable’ loans” including Ethereum’s ConsenSys, exchanges like ShapeShift and Bittrex, and even projects associated with Cardano. “There are also a load of shitcoins & ‘blockchains’ that got up to $1 million,” she complained

PPP

Herbert referenced Paycheck Protection Program (PPP) funds, part of a larger $2 trillion package known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which some have calculated to be the largest federal emergency aid bill in US history. Initially, the PPP was given $349 billion and administered by the Small Business Association (SBA), and quickly ran out of funds. The SBA was then provided another round of funding, $310 billion, bringing the total thus far to $659 billion. The programs have been criticized for being little more than glorified corporate bailouts, notorious transparency issues, and conflicts of interest — in other words, a government program.

“I pay millions in taxes every year and the US government decided to shut down the entire US Economy,” Cardano founder Charles Hoskinson insisted in response to Herbert. “The point of these loans is to maintain small businesses while they get brutalized by Covid. Would you rather it goes to Amazon and Microsoft?” Herbert appeared to dismiss Hoskinson, answering back how she “would rather it go to people who are not billionaires. I also pay way too much taxes. I understand the urge to fleece the taxpayer in return for the years of fleecing done unto you, but in this situation, there are millions of gig workers and genuine small businesses needing it.”

Even Bitcoin Mining Got Some Government Cheese

Noted libertarian founder of ShapeShift, Erik Voorhees, also commented in the thread. “We have gotten nothing from ‘US taxpayers,’ Stacy. We are the taxpayer. We have had many millions of dollars stolen from us. We took some of it back. Direct your scorn at the thieves,” he stressed. “That’s what Jamie Dimon and Lloyd Blankfein argued when they too received billions in taxpayer bailouts,” Herbert retorted. “I’ll keep you posted on how much my taxes increase next year to pay for this.”

Voorhees then accused her of “suffering from Stockholm Syndrome. I encourage you to get as much of your stolen property back as you can and I’ll happy support your efforts in doing so.” Herbert refused to concede to either of the men, ultimately.

Former CTO Core Scientific, known online as Kristy-Leigh Minehan, showed how even mining businesses got into the government cheese giveaway. “Core Scientific, who received 2-5M from City National Bank in April; Griid Infrastructure, who received 150,000-350,000 from Signature Bank in April; Compute North, who received between 350,000-1M from Highland Bank in April; Nebulous, who got 150,000-350,000 from Needham Bank in April; BTCMiner, which received 150,000-350,000 from Northeast Bank in June,” she documented. “To me it is baffling that some of these companies who have valuations over 300M are able to gain a ‘small business’ loan.”

Bitcoin Cash

CONTINUE THE SPICE and check out our piping hot VIDEOS. Our podcast, The CoinSpice Podcast, has amazing guests. Follow CoinSpice on Twitter. Join our Telegram feed to make sure you never miss a post. Drop some BCH at the merch shop — we’ve got some spicy shirts for men and women. Don’t forget to help spread the word about CoinSpice on social media.

DYOR: CoinSpice is your home for just spicy crypto things. We’re not affiliated with any cryptocurrency project or token. Each published piece is intended for information purposes only, not investment advice and not in the hope of impacting speculative markets. There are plenty of trading sites and coin-specific advocacy journals out there, we’re neither. CoinSpice strives for rigorous accuracy in our reporting. Information presented here is contingent usually on a host of factors, and the ecosystem moves fast — prices change, projects change, and at warp speed. Do your own research.

DISCLOSURE: The author holds cryptocurrency as part of his financial portfolio, including BCH.