Collapse of FTX crypto Bank....a Lehman Moment?
Posted: Sun 13 Nov 2022, 00:35:59
Has anybody else been following the collapse of FTX---the world's third largest Crypto Bank and Exchange?
Just a few weeks ago FTX was worth 35 billion dollars in the stock market, and its founder Sam Bankman-Fried was personally thought to be worth 15 billion dollars.
But in the last week FTX has totally collapsed. Trading has been stopped, Mr. Bankman-Fried has resigned as CEO, and billions of dollars of crypto "assets" thought to be
held by FTX have completely disappeared. Reports say Mr. Bankman-Fried seems to have transferred billions of dollars to company run by his girlfriend. Other reports say people with accounts at FTX are logging into their accounts only to find that they have been zeroed out....i.e. someone has stolen all their money.
Some are saying this has the potential to be a "Lehman moment" i.e. a collapse at a single major financial institution that leads to the unravelling of a much bigger part of the global financial system.
One of the weirdest things about the FTX collapse is that there doesn't seem to have been any SEC or federal regulation or oversight of the company......none at all.
And even weirder is the fact that Sam Bankman-Fried has been one of the biggest donors to the Democratic party for the last several years. In 2022 alone he (or FTX) seems to have given the D party ca. 45 million dollars for the 2022 elections.
sam-bankman-fried-charmed-washington-democrats-then-his-crypto-empire-imploded/
And this is all a bit like the Bernie Madoff scandal. Bernie Madoff was also one of the biggest donors to the D party before his giant ponzi scheme finally collapsed. Once again, there was little to no federal oversight or regulation of this well-connected D donor and con man right up to moment that everything collapsed.
So, IMHO the FTX scandal has elements of both the Lehman brothers bank collapse AND the Bernie Madoff ponzi scheme collapse all combined into one giant financial-political-ponzi scheme hairball from hell.
Sam Bankman-Fried keep saying the money of FTX customers was safe.....right up until he resigned and all the money disappeared.....
SHEESH!!!!
Just a few weeks ago FTX was worth 35 billion dollars in the stock market, and its founder Sam Bankman-Fried was personally thought to be worth 15 billion dollars.
But in the last week FTX has totally collapsed. Trading has been stopped, Mr. Bankman-Fried has resigned as CEO, and billions of dollars of crypto "assets" thought to be
held by FTX have completely disappeared. Reports say Mr. Bankman-Fried seems to have transferred billions of dollars to company run by his girlfriend. Other reports say people with accounts at FTX are logging into their accounts only to find that they have been zeroed out....i.e. someone has stolen all their money.
Some are saying this has the potential to be a "Lehman moment" i.e. a collapse at a single major financial institution that leads to the unravelling of a much bigger part of the global financial system.
One of the weirdest things about the FTX collapse is that there doesn't seem to have been any SEC or federal regulation or oversight of the company......none at all.
And even weirder is the fact that Sam Bankman-Fried has been one of the biggest donors to the Democratic party for the last several years. In 2022 alone he (or FTX) seems to have given the D party ca. 45 million dollars for the 2022 elections.
sam-bankman-fried-charmed-washington-democrats-then-his-crypto-empire-imploded/
And this is all a bit like the Bernie Madoff scandal. Bernie Madoff was also one of the biggest donors to the D party before his giant ponzi scheme finally collapsed. Once again, there was little to no federal oversight or regulation of this well-connected D donor and con man right up to moment that everything collapsed.
So, IMHO the FTX scandal has elements of both the Lehman brothers bank collapse AND the Bernie Madoff ponzi scheme collapse all combined into one giant financial-political-ponzi scheme hairball from hell.
Sam Bankman-Fried keep saying the money of FTX customers was safe.....right up until he resigned and all the money disappeared.....
SHEESH!!!!