Crypto exchange FTX Collapses; Democrats and Ukraine connections revealed.
Sam Bankman-Fried's fall from grace may take a few powerful people down with him.
The once-prominent cryptocurrency exchange, FTX, that was promoted heavily by the World Economic Forum, officially filed for bankruptcy on Friday after a proverbial ‘bank run’ took place where users withdrew as much as $6 billion in funds., This invariably caused the price of FTX’s own proprietary token, FTT, to plummet in value. The token had been worth as much as $85.74 as of September of 2021, but has since plummeted as low as $1.27 — a 98.51% decrease in value in a little over a year’s time.
FTX had once been valued at as much as $32 billion, but after a crucial deal with Binance fell through, the company has been hemorrhaging ever since.
Sam Bankman-Fried, the embattled former CEO of FTX who resigned Friday after FTX formally filed for bankruptcy, has also seen his own personal fortune drop from as much as $15.4 billion to $991.5 billion in a 2 day span after Binance backed out of a deal to buy out FTX.
Having inked some big deals worth hundreds of millions of dollars, including a 19-year deal to put their name on the Miami Heat’s NBA arena, and also a 5-year deal with Major League Baseball to be known as the ‘official crypto exchange of the MLB’ that including emblazoning the uniforms of umpires with FTX’s logo, it looked like the company was set to blast off. Sometimes, though, the rocket breaks up. This is definitely one of those times, and it has everything to do with shady businessmen doing what they do.
Binance released a tweet about the situation, and it seems that FTX essentially got caught with their hand in the cookie jar. I wonder if Bankman-Fried’s political ambitions had anything to do with it?
Some analysts are essentially calling this the ‘Lehman Brothers’ scenario for crypto, and if my own crypto holdings are any example, as of the time of writing this, I’m inclined to agree. The bloodbath will likely continue until confidence is restored, not merely blind hope, which is what is floating around right now, if comment sections about the crypto crash are any indication.
Fortune.com is trying to put their finger on the scale by putting out fearmongering about Bitcoin’s price falling below $10,000 again, but my theory about any articles like that is that you should read them as if the writer’s position is reflected in their sentiments. A person who spreads fear usually seems to want to buy into a security/crypto at a lower price. A person/company who advertises confidence seems to almost invariably want to offload their own positions at inflated prices to leave their readers holding nothing but an empty bag. Just my observation.
By the way, I do not give out financial advice on this Substack, so take anything I say on the matter as mere speculation on my part.
The interesting thing about FTX and its former CEO is the fact that they seemed to be deeply involved in many initiatives meant to shape the narrative to benefit their party affiliations on various issues. And by ‘they’, you can probably figure it was Sam Bankman-Fried pushing these initiatives on his company.
For instance, did you know that FTX funded a questionable research project that mainstream news sources used to ‘debunk’ the effectiveness of ivermectin in treating covid?
This on its face might not seem that odd, but then when you figure out that Bankman-Fried’s donations to the Democratic party were only bested by George Soros himself that you find the motivation and ideological bias that could permeate such a study’s data. The fact that the party that benefited the most from pushing disinformation about covid while using their institutional prominence to gaslight an entire country, if not the world at-large, funded the research in question, kind of nullifies the results pending further investigation, in my mind. That’s too strong as far as conflicts of interest go.
While Soros’ donations were still substantially higher at $126 million, Bankman-Fried still ponied up a staggering $27 million for the Democratic party. Most of the money went to the ‘Protect our future’ PAC, who gave to Democrats that vowed to prioritize future pandemic prevention.
A cursory glance at the donor rolls and we see that Bankman-Fried funded this PAC almost single-handedly. And apparently it was effective in some cases, as 18 of the 25 Democrats that he supported went on to win their Congressional races. No doubt Bankman-Fried’s fall from grace will be a dark day for Democrats, as a crucial source of funding might not be there the next time an election rolls around. That’s less funding for carpal tunnel treatments for their mail-in ballot harvesters, I guess.
There is something far more devious lurking beneath the surface, however, and it has to do with Ukraine, military aid, and cryptocurrency. The loop is quite simple: FTX and Sam Bankman-Fried donated to help Democrats win elections. Democrats summarily got into power, and started giving money hand-over-fist to Ukraine. Ukraine then used some of the money that was intended as military aid to invest in crypto via the FTX platform. I’m not a smart man; but I know what money-laundering looks like.
Will there be investigations? Probably not. Especially with the election going the way it did, through whatever nefarious means it took. Some lefties on Twitter are using the opportunity to also throw GOP candidates under the bus that received money from FTX and Bankman-Fried, but it hits a little different when the GOP are not the ones in power giving billions in taxpayer money to Ukraine and then laundering it back to themselves via campaign donations and crypto investments. This is theft from the American people, plain and simple. And it’s being perpetrated by elected Democrats and their billionaire buddies.
The truth hurts.
This is textbook corruption and its running rampant in our country, basically unchecked. One party’s power consolidation efforts through nefarious means threaten to plunge us irreversibly into the very oligarchy that leftists claim to oppose.
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