FTX debacle is only tangentially related to cryptocurrency. It is related to far more sinister things that will come to haunt billions of people. When an incident happen and news breaks out, we are dealing with a small amount of information with questionable accuracy. I have been consuming hours of content trying to learn more about FTX, Sam Bankman-Fried and other involved entities. As I go deeper in my research, I have realized that although my initial assumptions were mostly correct, I have been missing the big picture.
Rotten To The Core - It Wasn't Even A Business
This image is not what usually comes into mind when you think of a cryptocurrency exchange (even a bad one). You may consider a situation where some Dark Web criminals are involved. You may think of an exchange playing with user funds and becoming insolvent. You can think of bad use of capital and running a company to the ground while attempting at Blitzscaling. You can even expect another Mt. Gox scenario or even make it worse. When researching into FTX, the things that come up can make Justin Sun look halfway saintly. Even the meme above is ONLY the tip of the iceberg.
Let Us Get The Simple Things Out First
I have said this fact before and I will say this again along with another one of the basics in crypto: Not your keys; not your crypto. Even khaleelkazi recently made a Thread about this:
Cryptocurrency is about verification, mathematics, control over one's own property etc. Trusting some people or companies instead of mathematics is a part of TradFi; the exact thing cryptocurrency aim to kill. I don't care what some user agreement say because whatever it has written on it is not self executed. It is smart contracts that are self executed. These you will only find in DeFi. One should never consider themselves as the owners of funds in exchanges. The cryptography respect the private keys. It does not care about the pinky promise someone made with you when YOU send assets to THEIR wallet.
Opening With Mark W. Yusko
After coming across all the content in this interview and finding some of it to be already repetitive, I thought it is important to start spreading the knowledge I have gathered. Better information will come out eventually. But waiting too long will make people miss out on some very important details that goes far deeper than cryptosphere.
What Coin Bureau Covered
These are likely already seen by many of my audience as Coin Bureau has been a mostly reliable source of news and analysis. It does give a timeline from the perspective of crypto media on Web 2.
Coverage From A Hedge Fund Manager/Former Investment Banker
One thing that has become extremely apparent during my research is the value of going for different kinds of sources with people with different backgrounds and agendas presenting the information. If different entities with conflicting agendas keep presenting the same kind of things; you should be paying attention.
Tiffany Fong Interviews With Sam Bankman-Fried
If you are looking for some information that come straight from the fraudster, this is a good place to start. Obviously, SBF will be lying in whatever the ways his PR and legal team has advised him to act on. Therefore I would not put much weight in what he has to say:
The deep State Psyop Theory
Mark Moss is an interesting case of a very smart person who does have very Libertarian principles yet oppose many things that is part of cryptosphere. My feelings towards him is somewhat similar to what I feel about Peter Schiff. They can be incredibly smart and have great research and information delivery. Then they go ahead and attack an innovation that can help the causes they already support.
The last video is the one that got me deep into the rabbit hole. It is what made me realize that FTX debacle was hardly a case of Financial Darwinism of bad companies going bust.
Mainstream Coverage + Politics
It was not the most fun experience to listen to the mainstream media. Fox still did much better than rest of the leftist media full of hypocrisy. For an example, Jim Cramer promoted SBF as the "J. P. Morgan of this generation". Watch the two videos released few months apart.
Kevin O’Leary Exposed Himself
I did not like the approach and attitude Kevin O’Leary had towards cryptocurrency from the beginning. He was against the ethos that built this multi trillion dollar economy out of nothing in a decade. Compare what he has to say about Sam Bankman-Fried and FTX with all the other information you can find about them. Then realize that Kevin O’Leary is to everyone right now in a frenzy or is actually incompetent at thoughtful analysis and detecting red flags when making investments.
If This Does Not Ruin Credibility of Kevin O’Leary, What More Do You Want?
Bitcoin Maximalists Are Making It Worse
It is tragic to see people who want better finances and a better world rally against cryptosphere. These morons are knowingly or unknowingly supporting the TradFi cartels that are oppressing individuals across the globe. They want everything to be built on BTC and even equates Vitalik Buterin to a kind of a Sam Bankman-Fried:
A less worse example would be Mark Moss who says "Crypto is a Scam But NOT Bitcoin":
The Battle is Hard | Share The Knowledge
We already have so many working systems built that can make the lives of billions of people better. HIVE is one of them. I use it daily with 3 second transactions and One Block Irreversibly. I pay zero transaction fees and I get to use a censorship free social media along with a host of other DAPPs including DeFi without GAS Fees.
I have come to realize that those who are involved in cryptocurrency can be deep state pawns working to create a dystopia or even provoke a potential WWIII when the dominoes fall. The best that I can do is to inform more people and get myself prepared. If you have the power or wealth to do better, please do better than I have.
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If EVERYTHING you said and hinted at was true... it would just be what i expect from this group of mother WEFers.
Long running, good, solid crypto projects get no love... but FTX gets retirement funds moved to it??!!
This whole thing was planned. A well constructed trojan horse.
But not too well. There were people shouting to stay away from FTX
There were people shouting to get off FTX
">en Dot Com Boom & Bust - Digital Entertainment Network-jmaRTZpJgPA"
a video i have saved... but i cannot seem to find it out in the wild anymore.
Talks about similar games that were played... STEEM being one of the stepping stones.
Bernie Made Off with the money
And Sam was a Bankman
and really, a single person cannot spend enough money to cause that much loss.
Partying every day on private yachts doesn't put a dent in a billion dollars.
Soooo, this was not a case of stupid young man, this was
The worst case scenario is increasingly becoming the most likely scenario. You can expect the worst from these politicians and WEF affiliated types and most likely you will be proven right. That is a sad state of world. At least with cryptocurrency and DAPPs, we can have some tools to fight against this scourge. The problem is getting the adoption. Buying some crypto/NFT from an exchange does not count. Trying to get rich with some Token does not count. Using projects like HIVE fortunately does count.
Even among cryptocurrency developers, there are very few like Amir Taaki who believe in the fundamental ethos that gave birth to cryptocurrency in the first place:
I tried myself. The best I could find was this.
@builderofcastles, @vimukthi(1/1) sent you LUV. wallet | market | tools | discord | community | <>< daily
HiveBuzz.me NFT for Peace
But it is accurate. FTX became the synonym of money laundering. Sam Bankman-Fried and probably Gary Wang simply stole the funds of their "customers" together. I write this, because Gary Wang is also a founder of FTX. Probably more or less, his hands are also in this.
The entire close circle of Sam Bankman-Fried was in on this.The "Hack" was likely an inside job to make sure they have enough wealth to bribe their way out this or maybe to have as sort of a retirement plan. We have seen bigger hacks get caught. But unfortunately SBF is a buddy of law makers, child sex traffickers and politicians. There is still a good chance he would get away with a slap on the wrist.
All in all, one of the rules of wealth is, no one can spend your money better than you..
So, we should try as much as possible to always know where our money is... If it's in the hands of the other party, then we are fucked, because they can choose to give it back or tell us to go to hell in our faces.
I just hope a lot of people have learned from this. And I am hoping their dystopia plans doesn't work out.
The best we can do is to develop the tools for freedom and be prepared. We can also vote with our wallets and starve the beast of its finances and data. We can still win and prevail over these tyrants if we try hard enough 👍
I completely agree.
FTX was a ponzi and it looks like their entire group didn't even understand how to run a business properly. Given how his parents were people who obviously understood everything, I have no doubt that he understood what was going on. I guess the understanding of don't trust people with money but don't spend them is a good thing to consider in the future.
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I believe that many are involved in this story, it is impossible for one person to have done all this
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I have heard that FTX was used for money laundering operations, especially concerning Ukraine. I don't doubt this, although I still don't understand FTX's role in this particular case of money laundering.
What I do know is that a majority of the Tether (USDT) ever minted was owned or passed through FTX & Alameda Research. If Tether had a shaky reputation before this scandal, then FTX is essentially the kiss of death for Tether. However, Tether may survive for the same reason FTX was allowed to exist: it was a tool for many behind-the-scenes players.
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There were more details about money laundering operations on the first video I shared. There are some truly messed up things regarding how the Ukraine funds were handled: https://slaynews.com/news/biden-admin-unable-account-20-billion-us-aid-sent-ukraine
A very important thing to know about stablecoins is that they are mostly US debt. @d-zero had a great article written about this: https://ecency.com/hive-167922/@d-zero/millions-of-crypto-investors-got-duped-into-buying-us-debt