Clearly lots to digest in the FTX story. There is little doubt in my mind that something much more nefarious was at play than the financial prodigy getting careless or reckless, whichever you prefer. FTX/Alameda (FTX-A) was a carefully constructed financial company that was funded by millions or billions of very smart money. Sequoia Capital does not squander its investments, even though it took a $150 million write-off. Not so sure that the Ontario Teacher’s Pension Plan ($181 million write-off) was smart money, probably dumb money looking for a fantasy return in crypto.
The family ties of both SBF and Ellison suggest much more intelligent design to the project than either really had the capacity to concoct. I am still trying to sort out what I think really happened. Here is an interesting perspective that I believe comes close to the truth. A Grand Unified Theory of the FTX Disaster, by Michael Crawford.
The nut of the matter is found about halfway down the lengthy article, Establishing a New Financial Grand Order in One Fell Swoop.
Here’s the Primary Thesis: “I submit that it is highly likely that FTX-Alameda’s planned best hope was to establish a new Global Central Digital Bank (GCDB). This GCDB would be the ultimate issuer of Central Bank Digital Currencies (CBDCs, though eventually the plural would not be needed under the then-inevitable governance structure), such as the one now being pushed on Australia.”
In addition to SBF and Ellison’s parents, fingers point at Gary Gensler, head of the SEC. Evidence suggests he was front-running FTX , threading the needle of the regulatory regime that would give FTX a regulatory monopoly and place it at the the pinnacle of global CBDC issuance.
Arnold Fling helps make the connection for what FTX actually was. The Government as a Crypto Scammer — Treasury is FTX, The Fed is Alameda Research.
When you consider the expertise and political ties of SBF/Ellison parents, roll in Gensler and who knows who else, FTX-A (the Death Star) begins to look like a gambit to take control of the global digital currency financial universe. FTX would be THE Global Central Digital Bank. THIS is why the “smart money” flowed into FTX.
The bankrolling of Democrat candidates (and some Republicans) in the mid-term elections, the usual grifters (e.g. Clintons), and the fawning bought-off MSM and financial media are all enthusiastic accomplices in the PR campaign. I’d suggest the mastermind of the public-facing aspect of the plan was SBF’s mother, Barbara Fried. Google her and understand how well connected she was.
FTX-A was a bold gambit. I won’t be surprised if the FTX principals and their extended families and enablers evade prosecution. Yet another intriguing aspect of the collapse is the well-published accounts of financial mismanagement, as if the whole scheme was carefully constructed and executed to say, “oopsie, bad on us. Just a bunch of dumb kids. I’m sorry I failed my investors.” FTX was using message software that auto-deleted, effectively destroying any message trail that could be used against them.
And it goes without saying that the whole setup in Bermuda appears to have been to move any detectable malfeasance (e.g. plundering the accounts of clients) off-shore and out of reach of real regulatory authorities. But, then, is the SEC/Gensler really going to prosecute? Rhetorical question.
I probably understand little of what went on. But, given the above thesis, I don’t know why it unraveled. Did SBF and co-conspirators actually just get sloppy and arrogant, or was the collapse part of the plan as well, or even an emergency escape. At its peak, FTX was reputed to be worth $32 billion, but that was just the manipulated value of its shares. There was, however, several $billions in real money under its control. Its frankly not believable that all the interested parties just let the real money be squandered and lost.
One last thing I’ll mention, of which I have seen nothing. Mayhaps the smart money did get their return, and the disappearing $billions ended up in hidden off-shore accounts. Clearly, FTX was laundering money. Maybe for some reason the jig was up, and it was time to black-hole the cash. On that, I doubt we’ll ever know. If SBF and Ellison live, then we know the truth.
Oh, and just to make your head spin further, read the part in the Crawford article about the Epstein connection.
The network of connections across the whole gambit is mind-boggling. The connections around SBF are an epicenter. We are so being played. By schemes like this, Ukraine, Digital IDs, plandemic, climate alarmism. Again, the Crawford article brings the receipts. Vast connections manipulating governments, corporations, media ad nauseum. And nothing we can do about it. The 99+% are f*cking doomed.
Yuval Noah Harari, Klaus Schwab’s lead advisor lays it out for us. Unfortunately, I believe he has a good understanding of where we are at. Not a world I want to live in.