This is the Most Diabolical Thing About FTX and SBF According to Michael Saylor

MicroStrategy Executive Chairman Michael Saylor spoke on Tuesday about the layers of evil and mismanagement behind last month’s FTX collapse.

Executives accused the exchange’s former CEO, Sam Bankman-Fried, of committing securities fraud through the FTT and gambling to steal depositors’ money using assets as collateral.

FTX SCAM ANALYSIS

and interview Thaler, a self-proclaimed “Bitcoin maximalist,” joined forces with Patrick Bett David on Monday to accuse Bankman-Fried of the cryptocurrency industry’s first moral crime, the crime of “shitcoinary.” I started by naming what he sees.

“Sam and most people in the crypto world were always guilty of pitching and promoting unregistered securities,” he said. “It was clear to the SEC chairman. [and] most politicians. “

The Bankman-Fried company was responsible for issuing a token called FTT, provided various benefits to users of his exchange. The asset, which was once a top 25 cryptocurrency, collapsed at over 90% in value during his FTX run last month and went bankrupt shortly thereafter.

According to Thaler, Bankman-Fried’s use of FTT and other tokens as collateral to make loans was “especially diabolical” given its relatively low liquidity. However, traditional banks such as Goldman Sachs refuse to lend money to such risky collateral.

Bankman-Fried was thus able to “look to itself” and use Alameda to “borrow” FTX users’ funds with FTT collateral. Alameda then used those funds to prop up the price of his FTT, allowing the company to borrow even more money to fund Sam Bankman-Fried’s holding company, Paper Bird. did.

SBF claims it had little knowledge of what happened inside Alameda Research, but it is widely suspected that the trading desk was intimately involved in the events leading to the bankruptcy of both companies. document clearly Last month, Alameda was secretly removed from FTX’s automatic liquidation mechanism. This is a privilege that Saylor called “God Mode.”

“He made $10 billion in unregistered securities and secretly borrowed $10 billion from depositors,” Thaler explains. “Bet, trade, spend, lose.”

Thaler added that VCs that invest in FTX are effectively supporting “offshore unregulated casinos” and have not done due diligence. Investor Kevin O’Leary said: Admitted On Thursday, he revealed that he and other investors had overly relied on each other’s due diligence processes.

“Sam raked billions of dollars out of unsuspecting investors in Silicon Valley. They should have known better,” Thaler said.

The truth behind BlockFi salvation

Sam Bankman-Fried was considered an industry savior until a few months ago. block phi and Voyager.

At the time, SBF framed his relief effort as an altruistic attempt to protect the industry, not to make a profit. However, Saylor claims it was only intended to protect these companies to prevent Bankman-Fried from demanding a refund from Alameda.

“If you can simply give them $1 billion in stock, take over the company, and not pay off the loan, you can carry forward the whole scam,” he said.

Ultimately, Thaler believes FTX’s extremely low trading fees are a ruse to lure traders to put their assets on the platform and allow SBF to trade freely.