#Cryptocrash

[nsacpi]

FTX suffered a “complete failure of corporate controls” that culminated in an “unprecedented” debacle, its new chief executive said Thursday.

John J. Ray, who has helped oversee some of the biggest bankruptcies ever, including Enron’s, said in a filing to federal bankruptcy court that he’s never seen anything as bad in 40 years of restructuring firms.

The filing paints a vivid picture of the chaos that characterized the cryptocurrency company’s finances, accounting and leadership under founder and former CEO Sam Bankman-Fried.

In Mr. Ray’s first detailed description of the state of FTX and related trading firm, Alameda Research, since taking over last Friday, he wrote that the company can’t trust prior financial information produced by Mr. Bankman-Fried.

Corporate funds were used to buy homes for employees in the Bahamas without any form of internal documentation, according to the court filing. Mr. Bankman-Fried often communicated decisions to his employees through messaging applications that auto-deleted his statements, the filing said.

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” Mr. Ray said in the filing. “From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.”

https://www.wsj.com/articles/ceo-ove...d=hp_lead_pos1

[nsacpi]

On Wednesday, the news website Vox posted an article featuring screenshots of direct messages exchanged on Twitter between Mr. Bankman-Fried and a reporter, Kelsey Piper.

In a part of the exchange, he said “f— regulators” and asserted that “they make everything worse.” He also implied that his advocacy for better crypto regulation in Washington was “just PR.”

A part of me would like to see crypto left completely unregulated as a sort of Libertarian Nirvana. This would serve a useful pedagogical function.

#Do-Not-Regulate

[sturg33]

It is very clear to me that nsacpi and the legacy media have a fundamental misunderstanding of what FTX is

Don't worry y'all will catch up in a few months!

[thethe]

[Tapate50]

Should they not have done that ?

[thethe]

The globalists are so comfortable that there is no true opposition party that they can do these things in your face. Nobody will hold them accountable.

[acesfull86]

https://www.wsj.com/articles/sam-ban...nion_lead_pos2

Mr. Bankman-Fried virtue-signaled by committing to make FTX “carbon neutral” and donating generously to fashionable progressive causes such as a foundation working to provide solar energy in the Amazon River basin. “We’re giving millions each year to launch sustainability related initiatives,” he said in an April Forbes magazine interview with—you can’t make this up—Brazilian super-model Gisele Bündchen.

Meanwhile, he was leveraging FTX customer funds to make risky, ill-timed bets. “Problems were brewing. Larger than I realized,” he tweeted. “In the future, I’m going to care less about the dumb, contentless, ‘good actor’ framework,” he added. “What matters is what you do—is *actually* doing good or bad, not just *talking* about doing good or *using ESG language*.”


—————

Well no ****

LOL.

[Tapate50]

Man what a guy. This is the major Dem donor? What a scumbag.

[nsacpi]

In traditional finance, regulators require brokerages to segregate customer funds from any capital they use for trading.

https://www.wsj.com/articles/how-car...=WTRN#cxrecs_s

#Do-Not-Regulate

[sturg33]

The media treatment of SBF is quite telling.

He's a pair speaker for an upcoming NYT conference.

It's amazing. So bought and paid for... He won't see a day behind bars

[nsacpi]

Cryptocurrency lender BlockFi Inc. filed for bankruptcy Monday, making it the latest major digital assets company to fail since FTX, with which BlockFi is financially intertwined.

BlockFi was founded in 2017 by Zac Prince and Flori Marquez. The company lends money to customers using their cryptocurrency assets as collateral.

BlockFi halted withdrawals and limited activity on its platform earlier this month after saying it was affected by the downfall of FTX, which filed on Nov. 11 in the largest crypto bankruptcy to date.

BlockFi has said it had “significant exposure” to FTX and its sister company Alameda Research LLC, including taking a $400 million credit line from FTX U.S. that also gave FTX an option to buy the company.

BlockFi was one of several struggling crypto firms that signed deals to be rescued by FTX in the past months. The agreement is now in jeopardy as FTX itself sorts through its financial trouble and is subject to federal and state investigations.

https://www.wsj.com/articles/blockfi...d=hp_lead_pos1

[sturg33]

Man the fire fighting journalists paper of record really is going to bat for the biggest fraudster in American history

Wonder why that is??

But don't worry y'all can trust them on political matters lol

[nsacpi]

/opinion

[sturg33]

Don't worry the wall street journal has been slobbering him for a week

A mystery

[nsacpi]

#Do-Not-Regulate

Need Libertarian Nirvana for pedagogical reasons.

Note: pedagogy and pedophilia are very different things.

[sturg33]

He won't spend a day in jail because he has funded the tyranny

[nsacpi]

Years before Sam Bankman-Fried’s crypto empire collapsed, a group of employees quit in a power struggle—after becoming concerned about what they say was his cavalier approach to risk, compliance and accounting.

The employees worked at his trading firm, Alameda Research, and were some of his earliest colleagues, including Alameda’s co-founder, Tara Mac Aulay. They left in 2018, well before the crypto exchange FTX grew out of Alameda. Both FTX and Alameda are now bankrupt.

Mr. Bankman-Fried placed huge bets on crypto assets but paid little heed to the risk of those bets, brushing off the staffers’ concerns, according to people familiar with the matter. The firm commingled trading capital with operating cash and had poor record-keeping that left its profits and losses unclear, they said.

https://www.wsj.com/articles/early-a...d=hp_lead_pos1

#Do-Not-Regulate

#LibertarianNirvana

[sturg33]

SBF stole $10b of client money, gave it to Democrats, and won't spend a day in prison bc he funded the tyranny.

Avert your gaze indeed

[sturg33]

The system protects its own

Shameful

[thethe]

IF you're a Democrat and bow to the globalists you can get away with anything.

The revolution is going to come fast and fiercely. Think Franco in Spain....