FTX & Crypto-Implosion

 

The collapse of the FTX exchange is as obvious as it is the same lesson that is constantly repeated in finances over and over again. Essentially, FTX loaned $10 billion of client funds to its trading arm Alameda, which it used to leverage its own cryptocurrency speculation as the cryptocurrency market was crashing. Usually, someone like Sam Bankman-Fried has spent his entire life on this project. Due to the lack of financial controls operating out of the Bahamas, it was possible to move funds from client funds to his Alameda trading arm. Historically, someone in this position sees their world crumble but is unwilling to see it unfold because it requires admitting that they were wrong about cryptocurrencies, to begin with. Thus, such a person is not actually trying to steal clients’ money, but rather they will most likely see it as a temporary loan to save the company and the market will rebound – or so they think.

Our computer perfectly picked the highest level in Bitcoin and was expecting a crash along the way. But cryptocurrency has become a religion, thus obscuring the judgment of people who want to believe the story. Alameda exploded in a cipher crash because she didn’t want to accept the crypto boom ended. The loan, which he might have thought was temporary, faded into a meltdown. First, I would assume that they actually invested money and lost it in the bond market crash. But maybe it was too traditional. Here, it looks like they were trying to defend their cryptocurrency and trying to buy a bottom that kept moving lower. It appears that he was simply using clients’ money to trade while keeping the profits for his company and clients are now taking risks.

It seems that they were trying to defend the cryptocurrency market and did not understand that the boom was over. The loans can no longer be repaid. Due to the collapse of the cryptocurrency, some people needed to cash out. An attempt to withdraw $5 billion from FTX revealed the fact that the money had been completely lost. This is not strange. It’s happened before. This time around, prosecutors are demanding that they be the ones to accuse him so they can become famous because of his corpse.

FTX was a World Economic Forum (WEF) partner of Klaus Schwab. Of course, the WEF abruptly removed the page and is desperately trying to hide its involvement with FTX and Sam Bankman-Fried. Of course, the elimination of fiat currencies was the goal of the World Economic Forum because they support not only the end of capitalism, but the end of democracy. Schwab’s push was his major reassignment and control of society to enforce his economic philosophy inspired by Marx and Lenin.

Corcin-2This is by no means the first breach of fiduciary liability that poses a custodial risk. You may remember that MF Global Holdings Ltd. It was a company previously run by the Governor of New Jersey. Jon Corzine was accused in 2013 of illegally using client money to meet his company’s financing needs. When MF Global went bankrupt due to trading through Jon Corzine’s ex-Goldman Sach trading using his client’s money in London also out of USA oversight, he was Start He was sued for illegally using $1.6 billion of the client’s $26,000 funds. This will not be the case this time. So what is the difference between Corzine and Bankman-Fried? Corzine was previously at Goldman Sachs.

In fact, Corzine was in good contact in the White House with Obama. No one was imprisoned and clients had to wait in bankruptcy to get their money back – even cash in accounts. there obvious risks With a clearer broker. As long as the SEC is in the gold of former Goldman Sachs employees, there will be Start Be honest. Even when all the banks pleaded criminally guilty, the SEC excused everyone from losing their licenses. they will Start Do this with anyone outside of New York City. The Securities and Exchange Commission will never a trial Banks – Ever!!!!

In fact, several federal investigations have been launched into MF Global, including those conducted by the Commodity Futures Trading Commission (its main regulator), the Securities and Exchange Commission, the FBI, and Department of Justice prosecutors in both Chicago and New York. Mediation has also been the focus of many congressional hearings. No one accused Corzine of trading his client’s money. The losses that eventually drove MF Global into bankruptcy stemmed from the riskier bets on European sovereign bonds that Corzine incurred as he swing for the fence. Corzine is betting heavily that bond issuers will not default.

The CFTC simply fined Jon Corzine only 5 million dollars More than MF Global’s rapid descent into bankruptcy on October 31, 2011, lost an estimated $1.6 billion in client money. Anyone else would have been in prison for at least 20 years.

GlennMartin Glenn was the New York judge in MF’s global bankruptcy case. He was the first to share forced loans By abandoning the rule of law to help bankers by protecting them from losses by taking clients’ accounts to cover MF Global’s losses. He simply allowed the confiscation of client money when in fact the rule of law should have stated that bankers were responsible and that MF Global’s losses should have been reversed as they did even when Robert Maxwell’s London firms failed due to his illegal circulation of employee retirement funds. Yes, this was Ghislaine Maxwell’s father and the man who was in control of the company that Bill Browder worked for before Edmund Safra. Client money to offset MF Global losses should never be taken to NY Bankers. It was Judge Martin Glenn who put in the money in full; At risk by trying to protect the bankers. Martin Glenn pampered these bankers and made them new untouchable. We should be concerned because there is really no rule of law to protect you in a crisis.

Bloomberg TV’s Sam Bankman-Fried explained why he even created FTX. He said he had his own frustration with Alameda Research, which was his trading firm focused on cryptocurrency. He was frustrated with the implementation he was receiving on several crypto exchanges, so he claimed that it inspired the creation of FTX in May 2019. FTX quickly grew to become the third largest crypto exchange in the world, with nearly $16 billion of client assets guarded over the course of the year. 43 months.

Bankman-Fried stated that Alameda was making a lot of money, but could have made more and didn’t have access to venture capital. Claims for 100% annual returns are not uncommon in a boom period, but any experienced trader knows what goes up, and what goes down as well. Alameda was counting on “pooling lines of credit together” to expand its capital base. Then he created FTX to solve his funding problem, creating his own exchange that WEF even encouraged as a partner. He has already created a platform specifically designed for his own company, Alameda, to facilitate her trading needs. FTX coined the phrase “Built by Traders for Traders.”

There was a clear conflict of interest regarding the close relationship between FTX and Alameda. The work from the Bahamas has raised questions among those who are seasoned watchers of financial markets about whether the two are really at a distance from each other. However, people got so much adrenaline pumped with cryptocurrencies being the end of the dollar and central banks that this new crypto world believed what they wanted to believe and they never looked too closely. FTX operates outside the regulatory realm of the United States and there has been a lack of any credit confirmation. When the founder of Binance, the world’s largest cryptocurrency exchange, Changpeng Zhao, publicly questioned the safety of the FTX/Alameda nexus on Twitter, saying he would sell over $500 million worth of FTX’s token FTT, it was a kiss of death weather. He realized that it would unleash a crypto panic that would swallow up the entire industry in a matter of days.

The collapse of FTX will now become an infection of the crypto world. This 20-something group of inexperienced traders signaled the demise of an industry that was getting all the hype without any sense. This crypto world will be seen as the DOT COM bubble of 2000. With a recession on the horizon, the collapse of sovereign debt, and the monetary system as a whole, people will be looking for more safe bets rather than throwing crypto dice. Nothing goes straight down. But by the end of the year, the volatility should boost everyone’s view of the world.

 

The FTX & Crypto-Implosion publication first appeared in Armstrong Economics.

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