Buckle up. There is so much to more discuss around the FTX crash and yet still so many unanswered questions. Though with the “investigators” mostly being crypto twitter traders that have their money at stake it’s hard to tell what is real and what are rumours. Although, compared to the “puff piece” news article on SBF from New York Times painting him as a great guy that (researchers already determined he’s likely paid off), they are doing amazing.
Since our last letter, FTX had 134 affiliated companies all filing for bankruptcy at the same time. 134 companies? RED FLAG!! Here is a full list of the company names from Blockworks on twitter if you’d like to see them all.
That included FTX US, which halted withdrawals shortly after the bankruptcy filing. Even though SBF said this wouldn’t affect FTX US and the regulation was different so there was 100% solvency. Another lie.
Some other things we learned about FTX:
FTX has connections to the WEF: Here is them on their website. the WEF scrubbed this page and took it down already after researchers started shared the news. Why hide the affiliation now WEF?
We should’ve seen this coming when we saw Bill Clinton on stage with SBF in the summer. And SBF was a MAJOR political donor: In fact, he was the 2nd largest donor to the democrat party behind George Soros. And we know how evil the first guy is.
Here’s a recent article by the FT on Sam’s generation donations to the democrats. He also donated to the republican party to the tune of $10’s of millions. Probably lining up allies on both side for a time like this where FTX was caught red handed breaking the law to avoid being charged or thrown in prison.
And while regulators have mentioned that they are investigating into the situation, there has been no discussion on penalties or jail time for SBF whatsoever. We know that he is detained somewhere near his mansion in Bahamas with some Bahamian police, but according to researchers they’ve paid off most of the people on the island as well. He continues to tweet so he is likely still accessing his computer.
And guess what? His mother was deep in politics with the democrats already. You can already smell the corruption. Here is a short backstory tying in his mother:
News then rolled out that SBF had a “backdoor” built into FTX’s accounting system, allowing him to alter the company’s financials without alerting executives and auditors. As well, the API keys that Alameda Research allowed them to front-run other transactions and giving them an unfair advantage on FTX.
While everyones funds are locked inside of FTX accounts still, there was allegedly political rules that allowed Bahamian residents to withdraw funds from the exchange since it resided in the Bahamas, as seen in FTX’s tweet below.
However, the Bahamian government released a notice that they did not authorize anything at all. This is likely another ploy for FTX insider to withdraw money for themselves or other insiders…
I guess that means Sam’s penthouse “The Orchid” is now back up for sale, for $39.5M. Take a look at the beautiful property he lived in.
Here’s a list of the investment SBF made into other companies, which many could be affected by the crash of FTX.
To make things worse, several of the companies that Alameda invested in were given a stipulation to hold their treasuries on FTX as part of their investment terms, so they could use that money on the backend while the deposits amounts on the website were shown in full.
The researchers then started looking into Caroline Ellison, the CEO of Alameda research and her affiliation with everything. and again more red flags show up.
Caroline’s Father is Glenn Ellison. A great thread by Tony (@ApeDurden on Twitter) sums up critical information on him and how he was Gary Gensler’s boss, the current Head of the SEC. Gary has turned a blind eye to FTX completely and instead been focusing on charging Kim Kardashian and other random influencers instead of focusing on the biggest scam in finance since the crash of Enron.
Glenn Ellison is an MIT professor. Somehow has net worth of $225million. How does that make sense? There’s a Full thread here breaking down the details.
There’s also rumours that FTX was being used to launder money the money that Biden gave to Ukraine, through FTX, back to the democrats. I didn’t see more specifics on Ukraine than just this, but Sam has definitely donated a lot of money to Biden.
Then there’s the research into Dan Friedbierg, the FTX legal counsel. According to these researchers Dan is the mastermind behind the whole plan, and of course SBF is the one to take the blame as the CEO. Dan is scrubbing himself from the internet and stealing the remaining funds. Read Dan’s story on a FB post here.
There are even conspiracies about Epstein’s island, and that it may not be dead, just moved to another location. But that’s another P*zzagate rabbit hole to go down for those who are interested in that sort of thing. Why was Clinton hanging out with SBF again?
Has this affected other exchanges?
This “contagion” trickles into so many other companies, as you can see the chart of investments sam made over the past couple years since starting FTX.
Lending platform BlockFi halted withdrawals. People should have withdrew from BlockFi after the Celsius/Voyager CeFi crash back in the spring. They filed for Bankruptcy.
There is concern over Crypto.com sharing their reserves with Gate.io after blockchain analytics showed 375k ETH transfer to Gate.io. However, Kris the CEO of Crypto.com says that they accidentally sent funds to their own Gate.io account and had it sent back. This sent up red flags and a flurry of withdrawals from Crypto.com happened.
However, they never froze withdrawals, so apparently they have the funds to back most of customers deposits. Kris made a bunch of videos answering questions around the exchange and they are still functioning. Still, withdraw your coins from all exchanges!
This morning, Genesis Trading’s lending arm also froze withdrawals and cited issues from the FTX impact. They mentioned days ago that they have $175M in funds stuck inside of FTX, and now they are not able to operate.
There are many lessons to be learned here, however the main one is NOT YOUR KEYS, NOT YOUR COINS.
Any coins that you have still have inside of cryptocurrency exchanges could disappear at any moment. Only leave coins you are actively trading in the next week or two on an exchange, and always withdraw everything else.
Everyone is recommended to have a hardware wallet like a Trezor, where you can safely and securely store your coins. They are practically sold out as sensible people rush to get a wallet to secure their coins
I always recommend the Trezor. The original Trezor One model is now only $67, you can get it here, and the Model T with a touch screen and color is available here for $213.
Will keep you update on what happens next, however keep your coins close!
Ashton Addison
-CEO, Crypto Coin Show
Only 1 Question:
How this may boost or affect to ADA?
Cheers