Bankman-Fried: I Made An $8 Billion Mistake
When facing lengthy jail time, one usually crawls up in a ball, cries quietly and whatever happens, one does not tweet. At least that's what lawyers would advise any rational, sane client. Apparently that designation does not apply to cryptofraud and Democratic donor par excellence, Sam Bankman-Fried, who either knows Democrats and their pet FBI will never allow him to go to prison, or is otherwise a complete idiot, and instead of keeping the lowest public profile he can, he keeps reminding the public of his record-breaking crypto fraud that has wiped out millions and led to hundreds of billions worth of value lost.
Case in point, his latest tweetstorm - we are now up to tweets 18 through 26 - in which the former CEO of now-bankrupt FTX who may or may not be facing extradition to the US to face criminal charges, said in a series of tweet - in which among other things he said that he "was on the cover of every magazine, and FTX was the darling of Silicon Valley. We got overconfident and careless" - he said that he made an $8 billion mistake on the cryptocurrency exchange’s leverage levels. It was $13 billion, not about $5 billion.
20) I was on the cover of every magazine, and FTX was the darling of Silicon Valley.
— SBF (@SBF_FTX) November 16, 2022
We got overconfident and careless.
22) And that risk was correlated--with the other collateral, and with the platform.
— SBF (@SBF_FTX) November 16, 2022
And then the crash came.
In a few day period, there was a historic crash--over 50% in most correlated assets, with no bid side liquidity.
And at the same time there was a run on the bank.
24) Shrapnel
— SBF (@SBF_FTX) November 16, 2022
Well, thanks for that brilliant insight. Now maybe address the part where you stole client funds to bail out your catastrophic investments. We can wait.
If that's not enough, the ultra-socialist outlet Vox, which as we suspected now admits it was being paid to felate and publish puff pieces for its formerly favorite Democratic donor, saying "Disclosure: This August, Bankman-Fried’s philanthropic family foundation, Building a Stronger Future, awarded Vox’s Future Perfect a grant for a 2023 reporting project. That project is now on pause", has published an even more grotesque back and forth of direct messages with SBF. Those who care, can read it here.
And while this obese, thieving nerd waxes poetic on twitter as he urgently makes plans to follow other disgraced crypto criminals into non-extradition venues like Dubai, Bali or the Maldives, the embarrassment for so-called "established investors" continues, and according to Bloomberg, Singapore’s state-owned investor, Temasek International invested $200 million to $300 million in cryptocurrency giant FTX before its implosion and is preparing to write down the entire bet.
While to some $300 million in a rounding error, to others it means the difference between life and death; luckily to Gemini Trust, which is a cryptocurrency platform run by the Winklevoss brothers, it didn't quite mean death, and in a tweet the exchange said it is fully back online hours after the company said it paused withdrawals on its lending program. Gemini is a lender to crypto brokerage Genesis, which suspended redemptions at its lending business after facing what it described as “abnormal withdrawal requests” in the aftermath of the collapse of FTX.
The fallout from the crisis is threatening the future of crypto lenders like BlockFi Inc. and Voyager Digital Ltd. Digital-asset markets extended losses Wednesday morning, with Bitcoin down 2% at 1:34 p.m. New York time
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