22 - The FTX Snafu Revisited

For this episode, the Unknowns revisit the FTX scandal with our own, “virtually local” expert, Daniel. We ponder how and why FTX grew so quickly to become the fourth biggest crypto exchange? How did founder Sam Bankman Fried, once described as the “new Bill Gates” (!) get so quickly connected to the rich and famous to become the Democratic party’s second biggest donor, and where exactly did that mysterious seed money come from?  Given his parents, who put up their house as part of SBF’s bail deal, are of limited means, how was the lion’s share of the 250-million-dollar bail bond funded?   What kind of person allows his parents to put up their house against their bail bond anyway?  And why was SBF allowed computer access straight after his release; when “coincidentally”, more funds were transferred out of the failed exchange to destinations as yet unknown.  Where is that stolen money now? We look at the link to the funds channelled to Ukraine, and the possible implications of a giant money laundering merry-go-round used to funnel dark money back to the Democratic Party. We agree that there is no real need for extra regulation, as this scandal seems more like theft, pure and simple, and therefore covered by existing laws. But the fear is that the huge knock-on effects on the cryptoverse, and on the financial system as a whole, will be used as an excuse to bring in more rules. These rules will, of course, restrict the rights of ordinary investors, rather than affect the big banks, for whom this sort of scam is all in a day’s work.  This could of course pave the way for “officially backed” digital money, i.e., central bank digital currencies (CBDCs), which come with total centralised control and transaction tracking. The lesson to take away from this scandal is you can’t con an honest man, and that anything that looks too good to be true probably is. And we should not try to regulate against the stupidity of a minority of investors who are desperate to jump onto the latest bubble bandwagon. Having said that, when I start my own crypto, you should of course buy as much as possible immediately.  I am just awaiting my hair growing into a giant fuzzy ball. Unknowns featured this week: Keel, Ashley, Terry, Justin and our crypto fount of knowledge, Daniel. Useful links: You Are Loved Store- Jackye’s online shop: "Their goal is to spread love and kindness throughout the world through every day and specialty items". Daniel´s Twitter page. We don’t really do social media as individuals: we are Unknowns after all. But you can contact our group via: Twitter - @UnionUnknowns; Email — [email protected]; Phone - 404-482-3130 And if you would like to support us, please subscribe on your favourite podcasting platform, leave a great review, and don’t forget to tune in next time for more unscripted, uncensored and un-PC conversations from Union of the Unknowns.