Popular cryptocurrency exchange FTX has filed for Chapter 11 bankruptcy, and amidst the chaos the company’s wealth and assets have seemingly evaporated.
FTX’s collapse came mere days after rival crypto exchange Binance withdrew from their plans to acquire the company, leaving it on the verge of collapse. FTX went from a $32 billion valuation to now filing for bankruptcy (via CNBC).
Alongside the company evaporating nearly overnight is the news CEO Sam Bankman-Fried resigned in disgrace. A previous Twitter thread from Bankman-Fried said, “I’m sorry. That’s the biggest thing. I fucked up, and should have done better.”
At least $1 billion, possibly up to $2 billion in client funds, have gone missing. Furthermore, $10 billion worth of customer funds were secretly funneled to his trading company, Alameda Research, which is run by his girlfriend – Caroline Ellison.
The 23-page bankruptcy document lists over 100,000 creditors at the now-former exchange, with assets ranging from $10 billion to $50 billion, as well as liabilities ranging from the same $10-50 billion.
A Democrat megadonor, Bankman-Fried was second only to George Soros in the largest donations to Joe Biden’s 2020 presidential campaign, with nearly $38 million for Biden and Soros putting a whopping $128 million into the campaign.
Bankman was pushed as a humble billionaire, though he secretly lived in a luxury Bahamas apartment with his inner circle of friends – many of whom were key FTX staff and reportedly had been romantically involved.
While most of Bankman’s donations were to big Democrats and dem candidates for elections, it seems his political maneuvering was to look virtuous – in reality it was likely for protection.
Connections to SEC boss Gary Gensley (his former professor at MIT) and Democrat strategist Barbara Fried (his mom) seemingly aided in the pursuit of not only protection for FTX, but more regulation for the crypto indusry (and thus their competitors).
Just prior to the company’s implosion, they confirmed a purported “hack” had hit their exchange, with nearly $500 million stolen by an individual rival crypto exchange Kraken claimed they identified.
Crypto experts noted anyone that attached an FTX account to their bank should change their bank passwords immediately, due to the nature of the hack.
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