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SBF and the FTX Fraud: He Can’t Keep Getting Away With This!



There is so much to unpack with the Sam Bankman-Fried FTX fraud. Over the past few weeks, the groundwork has been laid for what will ultimately make a compelling Netflix drama about the now-disgraced, “King of Crypto”. However, the dramedy that is SBF would only be funny if there weren’t millions of users who were defrauded for what some estimate as much as $10 billion dollars.

The fraud allegations (haha @ allegations) of misuse of customer funds only scratch the surface of the largest financial Ponzi since Bernie Madoff. This who-done-it involves celebrity endorsements, brand advertising at a massive scale, Bahamian real estate in his parent’s name, SEC collusion, media contributions, and massive political donations.

How could anyone think that FTX was a complete fraud? They had their logo on the uniforms of MLB umpires and the Miami Heat arena. They had ringing endorsements from Kevin O’Leary, Tom Brady, Larry David, and Matt Damon. SBF appeared in front of congress in December 2021 (top of the market) as the crypto-Jesus who was going to lead us to salvation in a utopian financial system. At least Maxin Waters bought it.

SBF has been lauded as the “world’s most generous billionaire”. He’s appeared on CNBC to lay out his plans for crypto supremacy despite shaking like an Adderal addict.

Jim Cramer even went as far as calling Sam and FTX the “JP Morgan of this generation”. Nice call.

The FTX Injustice

In May 2020, George Floyd was murdered by Minneapolis Police officers over an alleged counterfeit $20. Twenty dollars.

SBF is currently doing a media tour and receiving standing ovations by New York Times stans despite “allegedly” stealing $10 BILLION DOLLARS.

Even the laziest internet sleuth can see that SBF donated millions ($40 million to be exact) to Democratic candidates. He claims he donated the same amount to Republicans, but conveniently those were made through untraceable dark pools. If you can believe that.

These donations, and previous Washington suck-up fests, have apparently bought SBF a lot of goodwill within the halls of congress and the justice system. While Gary Gensler was trying to catch headlines by going after Kim Kardashian’s NFT projects, and Ripple, the SEC had no problem with FTX issuing unregistered securities in the form of the FTT Token.

How do the US Justice system and regulators have any credibility left?

Why did FTX Fail?

FTX controlled most of the useless FTT tokens which reached a one-time valuation of $9 billion dollars. They claimed these tokens were liquid and included them in their liquidity buffer at market value. But this isn’t the reason.

The reason is simple. Despite SBF blabbering on about not knowing, not having all the data, and margin accounts in Twitter Spaces and other interviews, this is an old scam. It’s the same scam Charles Ponzi ran when he was selling investors on the idea of the appreciating value of rare stamps (which were worthless).

Also, this is not a “crypto scam”. It annoys me when people say this. There is a LOT of good being done in cryptographic technology and in the crypto industry to make financial transactions accessible to the entire world and harness the technology for good. Nothing about what SBF did was for good despite his pie-hole spewing lies about philanthropy. He not only harmed his customers but the real innovators who will find it hard to get capital because of his fraud.

Despite all Sam’s Ididntknowisms about FTX, the scam was simple. Customers deposited their funds with FTX, thought they were secure and not to be touched according to the terms of service, and then SBF funneled all those funds to the trading arm of FTX, Alameda Research, where his incompetent girlfriend gambled it away buying shit coins that plummeted in value.

Coinbase CEO, Brian Armstrong, put it even more succinctly:

Don’t let the lies SBF is spewing about account errors, poor record keeping, and Tweets from Binance CEO CZ as the reasons for the failure of FTX. Nope, those reasons aren’t close. The Bahamian Rhapsody gang stole customer funds and bought real estate and shit coins, until there was nothing left for those same customers.

Will Sam Bankman-Fried go to Jail?

In an unbiased, uncorrupt world, the answer is a resounding, yes. But where do you think we are?

Sam’s mommy and daddy are well-connected compliance lawyers and Stanford professors. In addition to that his political donations and foresight to set up FTX off-shore makes things a little more complicated.

Nevertheless, kiss-blowing Rep. Maxine Waters has kindly invited SBF to testify before the congressional Financial Services Committee. Despite reports that she won’t move forward with a subpoena, which she pushed back on, she says a subpoena is “still on the table”. Mmmhmm.


It’s been great how candid Sam has been about his fraud. Thankfully there are some Senators who deal with reality, who are expected to subpoena Bankman-Fraud to explain WTF happened.

Defenders of SBF

Sam Bankman-Fried committed fraud, as he so shakingly admitted, after being pressed by the ever-grandstanding, Coffeezilla. Here it is:

Despite this admission, SBF still has a clown car filled with defenders. First, there was billionaire hedge-fund manager, Bill Ackman. I mean how does one become a billionaire without screwing someone over in the process? SBF is definitely telling the truth that he committed fraud. I agree!

Then there was this gem when I woke up this morning. I don’t really know or want to know who this clown is. His Twitter profile mentions he’s a “CNBC Crypto Trader “. Whatever that self-bloviation means. He’s also the founder of Crypto Banter, which after a few minutes of research wasn’t hard to see it was a typical pump-and-dump YouTube channel. SBF was in quick agreement to perpetuate the fraud!

I mean, imagine this. You deposit $1000 USD on FTX. SBF steals it from you, but to compensate you, he gives you FTT2 Tokens valued at a fictitious $1000. You agree, and go to try to sell, but since a million other customers did the same thing you can only recoup $0.25. What a world.

Crypto Needs to be Cleaned Up

I’m sorry for your losses, but SBF is proof that the industry has been taken advantage of by rich VC trust fund kiddies, ex-consultants, and scammers. It is good that FTX went bust.

Centralized crypto needs to be regulated and rules put in place. I’ve spent years managing liquidity risk and valuing FTT tokens at market value in your liquidity buffer is criminal in itself (and actually would be criminal for most financial institutions under Dodd-Frank Enhanced Prudential Standards). Decentralized crypto and Bitcoin need to keep building toward the end goal – the elimination of bad actors.

The grime needs to be cleared from the industry so the true potential of cryptographic technology can be unlocked for the world. This is the future and the likes of SBF can’t steal that.

SBF FTX Scam Breaking Bad

Disclosure: I own Bitcoin, Ethereum, Polygon, and other minor crypto positions. I have no money trapped in FTX and wouldn’t use Caroline’s money to buy FTT Tokens. 

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Bigger Than Hip Hop

The Rise of Bitcoin: Is it the End of the USD?





In recent years, the global financial landscape has witnessed a significant shift. The debasement of the USD and the rise of Bitcoin have sparked widespread discussions about the future of traditional currencies and the potential of cryptocurrencies. With the increasing interest in digital assets, it’s essential to explore the factors that have led to this phenomenon and evaluate the potential impact on the USD. This article delves into the implications of the USD debasement, the rise of Bitcoin, and whether it has the potential to replace the USD as the dominant global currency.

The Debasement of the USD

Over the past year, the USD has experienced significant debasement due to inflationary pressures. The increase in the money supply has resulted in the erosion of the USD’s purchasing power. As former Federal Reserve chairman Ben Bernanke once noted, the US government has the ability to produce as many USD as it wishes, essentially at no cost. This unlimited money printing has led to concerns about the long-term stability of the USD and its role as the world’s reserve currency.

The debasement of the USD is not a new phenomenon. Throughout history, fiat currencies have faced challenges, with many eventually losing their value entirely. The USD’s current predicament raises questions about its ability to maintain its status as the global reserve currency. As the value of the USD continues to decline, investors are seeking alternative forms of currency and stores of value.

The Rise of Bitcoin

Bitcoin, a decentralized digital currency, was created in 2008 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. The underlying technology behind Bitcoin, known as blockchain, has revolutionized the way financial transactions are conducted. Unlike traditional currencies, Bitcoin is not controlled by any central authority, such as a government or central bank. This decentralized nature is one of Bitcoin’s key features and has contributed to its growing popularity.

Bitcoin’s rise to prominence can be attributed to various factors. One of the primary drivers is its limited supply. According to the Bitcoin white paper, there will only ever be 21 million bitcoins, ensuring scarcity and protecting it from inflation. This fixed supply has attracted investors looking for a store of value that cannot be manipulated by central banks or governments.

Furthermore, the transparency and security offered by the blockchain technology underlying Bitcoin have instilled confidence in its users. Each transaction is recorded on a public ledger, making it nearly impossible to alter or counterfeit. This feature has made Bitcoin an attractive option for individuals and businesses seeking secure and reliable digital transactions.

Bitcoin vs. USD: A Battle for Dominance

The debasement of the USD and the rise of Bitcoin have sparked a debate about the future of global currencies. Some argue that Bitcoin has the potential to replace the USD as the dominant global currency. They point to its decentralized nature, limited supply, and growing acceptance as a method of payment.

Proponents of Bitcoin argue that its decentralized nature eliminates the need for intermediaries, such as banks, and reduces the risk of government manipulation. Additionally, Bitcoin’s fixed supply provides a hedge against inflation, making it an attractive investment for individuals seeking to protect their wealth.

However, others are skeptical about Bitcoin’s ability to replace the USD. They highlight several challenges, including its volatility and regulatory uncertainties. The price of Bitcoin has experienced significant fluctuations, which can make it less appealing as a medium of exchange. Additionally, governments around the world are grappling with how to regulate cryptocurrencies, potentially limiting their widespread adoption.

The Global Impact of Bitcoin

While the debate about the future of the USD and Bitcoin continues, it’s worth considering the global impact of cryptocurrencies. Bitcoin has gained popularity as a method of payment in various parts of the world. In countries with unstable economies or limited access to traditional banking services, Bitcoin offers an alternative financial system. Individuals can store and transfer value without relying on a centralized authority.

Furthermore, the rise of cryptocurrencies has prompted central banks to explore the concept of central bank digital currencies (CBDCs). CBDCs are digital representations of a country’s fiat currency, issued and regulated by the central bank. These digital currencies aim to combine the benefits of cryptocurrencies, such as efficiency and transparency, with the stability and trust associated with traditional fiat currencies.


The debasement of the USD and the rise of Bitcoin have sparked significant discussions about the future of global currencies. While some argue that Bitcoin has the potential to replace the USD, others remain skeptical. The USD’s debasement raises concerns about its long-term stability, while Bitcoin’s decentralized nature and limited supply make it an attractive alternative. However, challenges such as volatility and regulatory uncertainties must

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