I'll have to see what comes to light. From my understanding, the problem was FTX was in reality 'illiquid'. His competitor took full advantage of this and caused a bank-run. Many highly profitable companies go bust because of 'illiquid' issues, which is a real risk when they expand too fast (Peter Lynch warns about this in one of his books). Profitable does not always mean safety.
I found Marc Cohodes who I instantly fell in love with. He had put out this sweet in August: This is the video from September that he talks about Bankman. https://app.hedgeye.com/insights/12...hedgeye-investing-s?with_category=17-insights It starts at about 34 min for FTX but I would start at 30 minutes to hear his "Wig indicator" for short selling lol. Cohodes implies Bankman is just a complete fraud or maybe just the face of the scam. Here is the picture of Gary Wang that he is talking about in the video too. Supposedly that is the only picture of Bankman's partner Cohodes could find.
Sam Bankman was giving money to Democrats and was using an investment arm called Alameda, a hedge fund, to dump on the crypto markets since May 2021. The DOJ, the SEC and the CFTC was looking at his books and he's been under investigation in the meantime. Well, as he was being watched by the Feds, he was taking customer funds out of FTX, sending it to Alameda Research, who would then dump the markets, which means he was dumping on his FTX customers. And he's been a proponent of heavy regulation, as well. This guy was basically given the green light to do all this by the Feds. There's no way the government didn't know what he was doing for a year and a half. Welcome to the age of hyper-politicized letter agencies. But in the end, he still busted.
Some more info... FTX Hurtles Toward Bankruptcy With $8 Billion Hole, US Probe Bankman-Fried said his firm faced up to $8 billion shortfall Binance bailed on FTX takeover, citing finances and probes https://www.bloomberg.com/news/arti...llion-shortfall-possible-bankruptcy#xj4y7vzkg
A cover organization for financing the Midterm election fraud... Now dissolved this way since job done well for all...
[QUOTE"MKTrader, post: 5713421, member: 43977"]dump the markets[/QUOTE] what is meant by dump the markets?
FTX and Alameda It does not make sense that one of the most successful crypto exchanges that basically collects fees on the biggest crypto bull market cycle is bankrupt along with its investment arm that has early investor access to many projects that did 10's of thousands of percent returns, i.e. Solana, Avax, Near, Serum etc So, the story is that they were dumping crypto assets deposited on their exchanges that belong to their customers in a runaway bull market. Why do such a moronic ET move and in the process make a billionaire founder bankrupt in the process? Why investors such as Blackrock and Sequoia unable to discern a balance sheet with billions of $ in the hole which took Binance team less than 24 hours to discover? At first $3 Billion, then $8 Billion then now $10 Billion? What makes sense is that the US government has been suppressing the Bitcoin and crypto assets from taking off by dumping cryptos on the market, but they do not have any cryptos so they have Sam and FTX, maybe? and the likes of Blackrock and JP Morgan are investors, why not? I believe that CZ was able to expose them and crash their operations. A billionaire hero, like Batman, to save cryptos ecosystem Not all heroes wear a cape Everyone is saying FTX is done, no one is going to save them, and yet, rumors are circling now that Sam is busy pitching to investors to raise funds I think FTX will be somehow able to do an impossible feat of finding enough investors US government will not want to shut down an operations that is their access and control and visibility to offshore cryptos market Just my 2 satoshis