Summary of crypto bankruptcies--and a prediction

Been following crypto?  Here are three bankrupcy filings by major crypto firms, and one collapse:

Three Arrows:  "Valued" at $10 billion in May.  Current worth: zero.

Voyager:  The company's bankruptcy filing lists assets of between $1 billion and $10 billion, and liabilities in the same range.  Wait...that's one hell of a range of uncertainty, eh?  If a company does "real" accounting, both those numbers--but especially "liabilities"--should be known much more precisely.  Yet Voyager was able to get away with stating assets and liabilities in their official filing only within a factor of TEN.  Why do ya suppose the bankruptcy court let 'em get away with such absurd slop, eh?

Celsius: as recently as May the company claimed to be "managing" about $11.8 billion in assets, according to its website.  Investors had "loaned" it a staggering $8 billion.  In its bankruptcy filing the company claims it has just $167 million “in cash on hand” to settle accounts.

"luna" and Terra (a.k.a. UST):  Haven't declared bankruptcy yet, but at their peak the two crypto-currencies had a combined "market valuation" of almost $60 billion.  (Of course the actual total investors had at risk was much lower.)  Both collapsed in May and now are essentially worthless.

One early player--Pantera Capital--saw a 100x return on its investment and got out before the collapse--which was noticed by other investors and may have triggered the collapse.  The company's co-chief investment officer told CNBC that in the main fund where they held and traded luna, they sold about 87% of their position from Jan. 2021 through Apr. 2022. Pantera then sold another 8% in May, just before the collapse.

Untimately the company made $171 million on a $1.7 million initial investment.  Wow.

Now: EVERY "newz story" I've seen on these three bankruptcies and the collapse of Terra/luna emphasizes how many hundreds of millions of dollars each of these firms had loaned to other firms--induced by promises of 18% yields.  And because that statement is factually accurate, it doesn't set off any alarm bells for ya.

But it should, since all these huge loans were made to other crypto firms that are also essentially insolvent.  So what's the point of the stories noting these supposed assets, eh?

It's to make naive investors believe the bankrupt crypto firms have hundreds of millions of dollars in loans to other companies that could be recoverable. But with all the huge loans having been made to other crypto companies now also in trouble, only a few "connected" insiders will ever recover any of those unsecured loans.

Hmmm...so why are Mainstream Media outlets including true-but-misleading statements in their coverage of this meltdown naive investors, and what does this all mean for the next six months?

Let me make a prediction:  Unless the Democrats are totally annhilated in the mid-terms, they'll introduce an *amendment* to a virtually unrelated bill--with at least two RINO co-sponsors--intended to bail out certain crypto investors.  The rationale will be exactly the same as when biden regime used Dem control of congress to push through a law to have the federal gruberment repay $6 BILLION in student loans for students who borrowed money to attend fraudulent "schools."  

The amendment will claim that some investor losses were due to fraud, and will order some gruberment agency under Treasury or DOJ to identify the firms responsible for the fraud.  Then using the same rationale as was used to pay off loans for students who signed up for schools that turned out to be fraudulent, the regime will reimburse the losses of investors in the companies deemed to have committed fraud.

Totally unconstitutional, of course, but the biden regime has shown that they'll eagerly ignore that once "supreme law of the land" as they wish.

Of course the method by which the regime decides what was fraud and what wasn't will be secret--sealed for 50 years or so.  But by total coincidence the beneficiaries of this reimbursement for fraud will be every senator and rep who lost money in any crypto firm--and one non-congressman: Sam Bankman-Fried (and his company, Alameda), who is by all accounts the most revered person in crypto.

The amendment--probably to a 1200-page must-pass bill--will get almost no coverage from the Mainstream Media, since it will only cost $100 billion or so, buried in a trillion-dollar "appropriation bill," so it can't be blocked by a filibuster.  

Any stories will prominently note that the crucial amendment passed with "broad bipartisan support" and simply reimbursed innocent average American investors for losses caused by fraud.  Cuz what average investor could *possibly* have suspected that companies promising 18% returns, and investing hundreds of millions in *other* companies promising the same rate, were actually Ponzi schemes, eh?  

And we just cannot let duh po' unsophisticated investors--including our brilliant, innocent congresswhores and scammers, get victimized by all dat *fraud,* eh?  Cuz dey jus' be innocent victims, like your grandmother.

It's only fair, comrade.