$30 BILLION crypto firm collapses--total fraud--and no one bats an eye, cuz...reasons

Some historians claim one of the signs of a decadent, dying civilization is fraudsters and morons being elevated to star status.

Exhibit A:  The two kids below.  Five years ago the "male"--then just 27 years old--founded a "crypto exchange" called FTX.  Three years later the company had a paper valuation of $30 Billion or so, even though it never created a single thing of value.  In January of this year the founder--now 30--had a theoretical personal fortune of about $17 billion.  

Not bad for a company founded just 5 years ago and never created a single thing of value, eh?

The founder of FTX, Sam Bankman-Fried

The Media swooned over the brilliance of the company's founder, Sam Bankman-Fried: they fell all over themselves writing fawning, slobbering articles about his brilliance--much as they did with Bill Gates when he became the world's youngest billionaire.

In a dying society the "elites"--the toadies and suck-ups whose status depends on other toadies and suck-ups believing they're important--automatically believe that anyone who makes a fortune must be brilliant, eh?

If you've been paying attention you know that making fortunes is often due to either fraud or luck, but the Media pretends it's brilliance--and are well paid for doing so.

The entire value of FTX--like all crypto--was based on a thing called "the greater fool theory"--which is what sparked the "tulip mania" of the 1600s.  Look up both.  You won't, cuz you're too busy working to feed your family, or trying to get a college degree.  (That's why I write this blog.)

Three days ago FTX totally collapsed--with the help of a cunning communist who founded an even bigger "crypto exchange."  Within hours the value of FTX's flagship "token" FTT--essentially its stock--dropped 90%.

The company collapsed after Reuters reported that the founder and CEO of FTX, Sam Bankman-Fried, secretly transferred $10 billion of customer funds from FTX to a "trading company" called Alameda Research--also founded by Bankman-Fried and run by his sometimes girlfriend Caroline Ellison.  Before the collapse, endless breathless, fawning, adoring articles by moronic reporters described Alameda as the "research arm" of FTX.  

Turns out most of Alameda's billions in assets were in FTX's "token," FTT.  So when word spread that FTX was no longer honoring customer requests to withdraw their crypto, the collapse took Alameda too.

Caroline Ellison, head of a $10-BILLION company??

Two company insiders said Bankman-Fried showed several spreadsheets to the heads of the company's regulatory and legal teams that showed that FTX had moved around $10 billion in client funds from FTX to Alameda--whose CEO, you may have noticed, is Bankman-Fried's girlfriend.  Who made that transfer hasn't been admitted, but company execs say they didn't know about it.  And Bankman-Fried definitely had a motive.

But Bankman-Fried denied making the secret transfers.  In text messages to Reuters he said he "disagreed with the characterization" of the $10 billion transfer.  "We didn't secretly transfer," he said. "We had confusing internal labeling and misread it," he added, without elaborating.

Of course.  Transferring ten BILLION is so ho-hum to masters of the crypto universe that it's totally understandable that no one would double-check to ensure that the label saying "Party fund" was really "Client funds" and thus not the one to use, eh?

Asked about the missing funds, Bankman-Fried responded: "???"  Among the elites this is considered hip.  Recall Hilliary Clinton's response when she was asked, under oath, if she had her unsecured email server wiped:  She said "You mean like with a cloth?"

Reuter quotes two company insiders as saying that $1 billion to $2 billion of the $10 billion transferred is not accounted for among Alameda's assets.  The sources said no one at FTX knows what became of it.

The company's legal and finance teams say they've learned that Bankman-Fried used what the two insiders described as a 'backdoor' in FTX's book-keeping software, which enabled Bankman-Fried to make the transfer by himself, without alerting either company execs or external auditors.

Bahamas-based FTX filed for bankruptcy Friday, after thousands of customers rushed to withdraw funds earlier this week, but the firm refused to honor those requests.  

If you're a young American you should know that's a really bad sign.

Hours later Bankman's other company, Alameda, also filed for bankruptcy.

Bankman-Fried was as elite as they come: Both his parents were professors at Stanford Law School.  He graduated from MIT, then worked as a broker on Wall Street before founding FTX in 2017.

He quickly moved the company to the Bahamas, where taxes are only a fraction of what they are in the U.S.  Clever.

Neither FTX nor Alameda responded to requests for comment.

In a tweet on Friday Bankman-Fried said he was 'piecing together' what had happened at FTX.  'I was shocked to see things unravel the way they did earlier this week,' he wrote. 'I will, soon, write up a more complete post on the play by play.'

Customer withdrawals had surged last Sunday after Changpeng Zhao, founder of giant crypto exchange Binance, said that "due to recent revelations." his company would sell its entire holdings of FTX's digital token--holdings then thought to be worth at least $580 million,

Media report that the U.S. Securities and Exchange Commission is supposedly investigating FTX's handling of customer funds, as well its crypto-lending activities.  

Don't hold your breath.  SEC Chairman Gary Gensler showed no interest in investigating the company prior to the crash despite earlier warning signs that its business practices weren't on the level.  It should be noted that Gensler was hand-picked by biden and was a partner at Goldman-Sachs and finance officer for Hilliary Clinton's 2016 campaign.

SEC chief Gary Gensler: "Why do you say 'two sets of laws'?"

On Friday FTX said it had turned over control of the company to John J. Ray III, the restructuring specialist who handled the liquidation of Enron Corp - one of the largest bankruptcies in history.

Now pay attention, cuz we're about to get to the interesting part--the part that will explain why no one investigated, or ever will:

Bankman-Fried donated nearly $40 million to one political party just this year alone.  Can you guess which party?

Try to find that answer in the Mainstream Media.

C'mon, man!  Both his parents were Stanford law professors, so you don't need to ask:  $40 million to the Democrats in 2022.  And he gave another $5.2 million to biden's 2020 campaign.

But the Mainstream Media bleats that "He does not consider himself an exclusive Democrat donor" (MarketWatch).  Really?  So he gave, say, $20 million to the GOP?  Well kind of.  He gave $45,000 to the National Republican Congressional Committee.  

$40 million to Dems, $45,000 to the GOP.  It's about 99% Dem.  But that enables to Lying Mainstream Media to bleat that he's really a warm, fuzzy, NON-partisan guy.  What horseshit, but it's what the Media does: lie to make Dems look better.

Imagine what the headlines would be if this fraud-triggered collapse had involved a billionaire who had given $40 million to the GOP, eh?  Think it would have been front-page news in every paper, and the top story in every newz-cast?

Think the SEC and every other fed agency would come down on the guy like a ton of bricks?  Sure.  So let's see what happens under the "two sets of laws" system we have now.  The $40 million donated to the Dems by the 30-year-old wunderkind ensures he won't be touched.

In two more days the media will have totally buried this story.  

UPDATE:  After FTX collapsed, it was still in possession of crypto currency--owned by investors but kept by the company--worth an extimated $700 million.  So yesterday execs for FTX reported that some mysterious party had "hacked into the company's computers" and stolen most of those assets.

Now, if Bankman-Fried wasn't a huge Democrat donor, the theft (supposedly by mysterious hackers) of $600 million--especially when spiced up by "youngest billionaire" and "donated huge sum to [unnamed political party]" would normally be a HUGE story.  So go to Google and enter "hacking of FTX,"  and then do a "find on page" for ABC, NBC, CBS, MSNBC, Los Angeles Times and your local paper.

As of noon Eastern time on Sunday, November 13th, zip.  Zilch.  Duh Media don' want you to know nuttin'.

Yeah, it's in the NYT and on CNN, and in the foreign press.  But U.S. broadcast networks?  Hah.

Now why do you suppose it's not there, eh?  "Oh, it's just 'local interest,' like a car wreck."  

Or "It's not newzworthy.  People steal $600 million every week, right?"

Or "Hey, people make 'mistakes.'  It wouldn't be FAIR to put a spotlight on this poor young man who was just trying to help others by [mumble mumble global warming / climate change / green energy / EQUITY / reparations / Ukraine / booster shot], right?  I mean, we in the Press have a DUTY to our readers to be, like, really fair, eh?"

Democrats--who run the entire media and "entertainment industry" have ensured that Americans only hear and see what the Dems want them to.  It's why not quite half of all Americans voted Dem a week ago, and why they were able to steal the senate seat in Nevada and the governorship of Arizona, as well as a dozen House seats.  It's no accident that everywhere the count took days to complete, Dems won.

Takes time to pull off the steal.