FTX recap so far
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Everythingâs fine
Customers pulled funds from Crypto .com over the weekend after the companyâs chief executive said the cryptocurrency exchange mishandled a roughly $400 million transaction.
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this SB ad did not age well (like pets.com etc) . Start at 2.15
Larry David FTX Commercial - Search Videos
every day of the week, and twice on Sunday? another crypto blowup
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A quick reminder how these crypto brokerage failures and massive customer losses happen and why they donât happen in the US stock market thanks to the 1934 Act.
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I was going to write this is getting weird but it is not. Makes perfect sense
The FTX founder has reportedly spent almost $40 million mainly supporting Democrats during the current political cycle, according to Open Secrets.
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Second only behind George Soros for the Democrats, $40 million I guess. Do you think the politicians are going to give back the money to the FTX customers? Ha!
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FTX oh man, it gets worse and worse. Aside from what appears fo be insider trading by the hedge fund ahead of FTX token listings, youâve got their assets and are nothing at all like their liabilities.
https://www.bloomberg.com/opinion/articles/2022-11-14/ftx-s-balance-sheet-was-bad
Something like two-thirds of the money that FTX owed to customers was backed by its own tokens that it had made up.
And then the basic question is, how bad is the mismatch. Like, $16 billion of dollar liabilities and $16 billion of liquid dollar-denominated assets? Sure, great. $16 billion of dollar liabilities and $16 billion worth of Bitcoin assets? Not ideal, incredibly risky, but in some broad sense understandable. $16 billion of dollar liabilities and assets consisting entirely of some magic beans that you bought in the market for $16 billion? Very bad. $16 billion of dollar liabilities and assets consisting mostly of some magic beans that you invented yourself and acquired for zero dollars? WHAT? Never mind the valuation of the beans; where did the money go?
But then there is the âHidden, poorly internally labeled âfiat@â account,â with a balance of negative $8 billion.[[1]] i donât actually think that youâre supposed to subtract that number from net equity â though I do not know how this balance sheet is supposed to work! â but it doesnât matter. If you try to calculate the equity of a balance sheet with an entry for HIDDEN POORLY INTERNALLY LABELED ACCOUNT, Microsoft Clippy will appear before you in the flesh, bloodshot and staggering, with a knife in his little paper-clip hand, saying âjust what do you think youâre doing Dave?â You cannot apply ordinary arithmetic to numbers in a cell labeled âHIDDEN POORLY INTERNALLY LABELED ACCOUNT.â The result of adding or subtracting those numbers with ordinary numbers is not a number; it is prison.[[2]]
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A longer discussion of the scandal from Miranda Devine and the NYPost
Bidenâs second-biggest donor, cryptocurrency billionaire wunderkind Sam Bankman-Fried, a k a SBF, saw his business file for bankruptcy days after the election, but not before pumping $40 million into the Democratic Party to spend on âget-out-the-voteâ and other shadowy ballot-harvesting mechanics for the midterms.
SBFâs mother, Stanford law professor Barbara Fried, also is co-founder of left-wing political action committee Mind The Gap, which has raised a reported $140 million to help Democrats win elections through the same âget-out-the-voteâ grift.
I wonder if she got the money from crypto?
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Here is a list of republican and democratic donors. Lot of people lost a lot of money
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Of course. thereâs a Ukraine connection.
But hereâs where things get even weirder. Apparently, while the United States was bankrolling Ukraine and its war effort, that countryâs leaders were investing money into FTX.
It was also revealed that FTX had partnered with Ukraine to process donations to their war efforts within days of Joe Biden pledging billions of American taxpayer dollars to the country. Ukraine invested into FTX as the Biden administration funneled funds to the invaded nation, and FTX then made massive donations to Democrats in the US.
There are so many questions that arise from this. For example, why is Ukraine, which we are all assured is broke and needs US taxpayer money, playing around with a Democrat-linked crypto company? This wasnât just about accepting donations through the portal. The report specifically says that Ukraine actively invested money in FTX.
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No it didnât. The above article is a bullshit conspiracy theory. Ukraine used FTX to convert crypto to cash, it did not âinvest in FTX.â
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As the article says, why is Ukraine, which says it is hard up for cash and needs United States subsidies desperately, screwing around with crypto? The US subsidies came in the form of dollars that are accepted around the world as a reserve currency.
It was widely reported that the Ukrainian army raised at least few (4) million bucks worth of crypto donations when the conflict started (see 1st link). I didnât follow it that closely, but itâs safe to assume they likely kept getting crypto donations (2nd link says ~$64m now).
From googling:
Should they have denied individual donations (which are practically negligible in the scheme of things) simply because they were getting money and weapons from allies? I donât understand your concern.
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My concern is that the Ukrainians were taking money from the US government and then laundering it through FTX to pay off Democrat politicians. You are right, the small amount of individual donations mentioned in the article are negligible compared to the billions of dollars involved in the FTX collapse. The concern is the billions of dollars of United States aid and how much oversight in how it is spent.
The left-wing media and the Democrats will certainly not investigate this but we can hope that the Republicans gain one more seat in the House and are able to investigate it.
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itâs funny how every thread is turning into politics 
Would you be against a particular bank or USD if someone bad wrote Dems a check?
Back to topic. BlockFi filed for BK 
I guess depositors will be unsecured, last in line right? More importantly I was going to be a buy and hold crypto guy so I donât have to check the IRS sell box. Now I will have to select it
more FTX blow up details
https://twitter.com/mrjasonchoi/status/1592502790932156418
and more personal accounts of ex employees, new hires, and too many drugs by SBF
Looks like BlockFi lost 1/3-1/2 of everyoneâs money and will be bankrupt shortly
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There goes Genesis
- BITCOIN EXTENDS LOSSES AFTER GENESIS SUSPENDS WITHDRAWALS
- GENESISâ CRYPTO-LENDING UNIT IS HALTING CUSTOMER WITHDRAWALS IN WAKE OF FTX COLLAPSE - COINDESK
- GENESIS SAYS FTX HAS CREATED UNPRECEDENTED MARKET TURMOIL, RESULTING IN ABNORMAL WITHDRAWAL REQUESTS WHICH HAVE EXCEEDED OUR CURRENT LIQUIDITY
- GENESIS GLOBAL CAPITAL HAS PAUSED WITHDRAWALS; WILL NOT BE ABLE TO MEET CUSTOMER REDEMPTIONS WITHIN SERVICE-LEVEL AGREEMENT OF 5 BUSINESS DAYS - BLOG
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