THE spectacular crash of FTX, discussed in TCW yesterday, is developing into a scandal of epic proportions. On Friday November 11 FTX filed for bankruptcy, owing in excess of $3.1billion to more than a million customers, including major institutional investors such as BlackRock and Sequoia Capital. After a brief two and half years of trading, FTX’s rise and fall has left many with more questions than answers. Not least because the scandal is revealing more than just a loss of money, exposing much that the globalists might prefer to remain hidden.
There are two schools of thought. One is that FTX, the world’s second biggest crypto exchange, was run by youthful MIT graduates who got out of their depth. The second is that FTX may have been set up as a scam from the beginning. Without doubt, FTX had the fingerprints of the globalists all over it. It was once heavily promoted by the World Economic Forum, with its own page on their website describing FTX as a ‘cryptocurrency exchange built by traders, for traders’ and its founder regularly attended Davos gatherings. The key question that needs answering is cui bono, who benefited from FTX’s activities? Knowing that might give some clue as to its purpose.
Certainly, in respect of the age of those running the company, FTX was ideal. Globalists have a penchant for youth (vide WEF’s Young Global Leaders programme). Having the young nominally run things is a useful ploy. They attract other young who then form armies of ‘wokeists’ to play the role of useful idiots, as we see in Extinction Rebellion or Just Stop Oil. Youthfulness also creates its own tyranny in the sense that it cannot be challenged without appearing to stand in the way of ‘progress’. Thus the adults in the room become so overawed by the presence of these wunderkind that they forget to ask the obvious questions, such as ‘how much help did you have to get started?’
In the case of the Swedish doom goblin, we are supposed to believe that she spontaneously started skolstrejk för klimatet. Yet curiously she has moments when she appeared incapable of answering questions about climate without a script.
Back in the USA, Mark Zuckerberg apparently built Facebook on the back of some Harvard campus networking in 2004, even though coincidentally the Pentagon had begun work on something similar called Lifelog. Facebook, of course, has the great advantage in terms of collecting data that its users voluntarily provide so much detail. This summer, as if to emphasise the close ties with intelligence services, Zuckerberg confessed to Joe Rogan that Facebook had followed FBI guidance over the Hunter Biden laptop affair and in effect ‘shadow banned’ the story. Even before that, the shine had come off Zuckerberg as his holding company Meta has continued to lose value; now 11,000 employees have been sacked.
Then we have FTX’s Sam Bankman-Fried (aka SBF or as some are calling him ‘less bankman; more fried’ and even ‘Sam Bankster Fraud’), the 30-year-old founder of the crypto exchange.
SBF ticked a lot of boxes for the globalists. He was part of the ‘Effective Altruism‘ movement which claims to be about ‘doing good better’. Which meant that he could use some of his $16billion net worth on not-for-profit charities dear to the globalists focused on planet-saving projects. In July 2021 he set up the FTX Foundation which spawned a number of initiatives such as research into stopping future pandemics; FTX Climate, a fund for research into climate change; the FTX Future Fund with areas of interest such as Artificial Intelligence and the risks from bioweapons, and FTX Community, concerned with poverty, animal welfare and community outreach. All good philanthropic stuff, the sort that globalists like.
Institutional investors were reassured by SBF’s collaboration with Congress to develop regulation for the crypto sphere. With such high moral standards and lots of virtue-signalling – saving the planet, working to improve regulation around crypto, hanging out with Tony Blair and Bill Clinton, what could possibly go wrong?
Unfortunately for investors, as bankruptcy proceedings are currently revealing, SBF and his colleagues were involved in an unethical and fraudulent operation. Little did investors realise that SBF was in effect running a Ponzi scheme which secretly reallocated client funds out of FTX into Alameda Research, SBF’s trading company, as collateral to cover risky trades. Because there was no oversight (FTX lacked a board of governance) and no one asked hard questions, FTX ran out of liquidity and became insolvent.
It could be said that SBF’s absence of moral boundaries was reflected in his unconventional lifestyle living in the Bahamas in a polyamorous set-up with several of his colleagues. His supposed girlfriend who was running Alameda Research, Caroline Ellison, is on record describing it as being like an ‘imperial Chinese harem’. He also had no problem being a slush fund for the Democrat Party, being the second largest donor after George Soros; or being involved in financing Ukraine. FTX helped the Ukraine government to set up a crypto donations website, ‘Aid for Ukraine‘, which has led to accusations of US tax money sent to Ukraine being cycled back to the US via FTX.
Those who believe that FTX was a deliberate scam from the start point to SBF’s work with Congress as the main reason for FTX’s creation. It suited those who regard the decentralised nature of crypto as a threat to centralised financial controls to have a Trojan Horse insider who could work to undermine the crypto space. Even crashing FTX helps their cause as now all crypto is tarred with the Ponzi accusation and, having lost money, institutional investors will stay away from the space. At the end of the day, these are all power games. SBF may well have been a victim of larger forces. He served his purpose and had his fun in the sun.
Meanwhile we should all be more wary of wunderkinder. Not least the World Economic Forum, which has deleted FTX from its website and doesn’t seem keen to discuss the matter further. I wonder why?