FTX a Light into Crypto Darkness

Bitcoin dips below $16k mark

Hey Guys,

So the crypto winter is looking like a valley of death. It’s self-inflicted really for SBF and friends. With government investigations and court proceedings in their earliest stages, SBF’s fate remains unclear.

Cryptocurrency exchange FTX said it owes $3.1 billion to its top 50 creditors, according to documents filed Saturday in Delaware bankruptcy court.

The story gets really strange at times, I’ll be frank, I’ve never seen anything like this or the meltdown at Twitter. Even though the filing did not disclose the names of the parties wrapped up in the swift demise of FTX, the document makes clear the scope of the potential losses its clients face. 

For an industry that is supposed to be based on decentralization, trust and transparency, the twits and turns are like a B movie. So that “$500 Million hack” against FTX turn out to be the Behamas' regulator seizing assets? You have to to be kidding me.

If this is how to commit crypto suicide, the Ontario Teachers', one of Canada's largest pension funds with nearly $250 billion in assets under management (AUM), will write down the entirety of its $95 million investment in FTX after the troubled crypto exchange filed for bankruptcy protection. Can you imagine Teachers investing in crypto? That’s grim.

FTX, the cryptocurrency-trading site he’d founded and turned into a global behemoth, went insolvent. It’s understandable if you are feeling a bit sour on the fake coins. Assets that basically go up and down in dramatic fashion according to the demand for Bitcoin, whose supply is artificially halving at a staggering rate.

The revelations in the wake of FTX’s demise have been filled with red flags for prosecutors who specialize in financial crimes. You cannot fine this stuff, it’s prison terms and regulations for the seriousness of these crimes. One would hope?

In a 2020 FTX podcast, former Alameda Research CEO said she "took a blind leap into the unknown" when she joined Sam Bankman-Fried. While some of us were indoors during a pandemic, others were getting rich fast and buying their employees houses in the Bahamas. Under 30, I can imagine the appeal Caroline.

But what happens when the cult of Bitcoin goes down? Bitcoin if anything is the volatile digital gold for a reason.