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The FTX scandal

By
Managing Real Estate Broker with ERA American Real Estate

There is a small chance that you havent heard that FTX is no longer. The second largest crypto exchange in the matter of a week went from stating that they were a profitable business  https://fortune.com/2022/08/01/ftx-crypto-sam-bankman-fried-interview to no longer allowing deposit's and filing for bankruptcy protection and having their assets frozen in the Bahamas.

https://www.dailymail.co.uk/news/article-11426789/Sam-Bankman-Fried-puts-Bahamas-penthouse-called-Orchid-market-40-MILLION.html 

Sam Bankman Fried known as SBF was known for saying he wanted to do the most good aka Utilitarianism.

The media was in love with him and this story before the collapse of FTX, he was naming major sports league stadiums like the NBA Miami Heat center. He was featured on CNBC whenever he wanted to just show up for crypto world or Bloomberg television, he was on the cover of Fortune magazine hailed by many as the next Warren Buffet and or JP Morgan. This came about by his buying up organizations and having over 130 companies and known as a last resort for those in distress in the crypto exchange world.  

What was the driver, well believe it or not it was an original investor who is the largest centralized exchange who said they were cashing in their FTT tokens, thats all it took was losing their confidence and a couple crafted tweets calling into question FTX with their FTT token. "The FTX liquidity crisis began to come to light on November 6, when Zhao tweeted that he was going to liquidate all of Binance’s FTT holdings (FTT is FTX’s native token) due to “recent revelations"

https://decrypt.co/114923/only-a-psychopath-can-write-that-tweet-binance-ceo-cz-sbf 

The FTT token which were the tokens that represented FTX that were created by SBF. Those in the media that say they were created from thin area dont understand fiat and or crypto to my mind as its all created from thin air, what it is backed by is the key thing, the engineers that built FTX platform and trading volumes being handled the digitization of stocks, foreign currency exchange, commodities short and longs derivatives etc. Those that say its made of out of thin air, I suggest turning the channel and or move on to reading someone that understands what crypto is. 

What has come to light to me is watching the reporters who should have questioned this company all along start to ask the questions that should have been asked about using customers funds to make trades and these 3 questions

 1. How do we know you didnt leverage your own coin?

2. Do you have a board is it public?

3. Audited?

 

Now I am waiting to hear conspiracy theories start that SBF worked for the government either CIA,FBI and that he was used to try to collapse the crypto market as it cant be controlled by the normal monetary policy powers that be in the current world economics structures.

 

Posted by

Brandon Jordan, Realtor,E-PRO,ERA American Real Estate
 

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Brandon Jordan 
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ERA American Real Estate
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Comments(7)

Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Amazing story.. what a downfall

Nov 18, 2022 07:37 AM
Brandon Jordan

I do feel for those investors that lost monies with the exchange. I understand they had a U.S. regulated FTX as well first reports were that it faired better due to regulations waiting to see how that turns out for everyone.

Nov 18, 2022 07:39 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hi Brandon,
Anyone who hasn't heard of the FTX scandal has probably been lost in the wilderness.

Nov 18, 2022 08:50 AM
Wanda Kubat-Nerdin - Wanda Can!

LOL, Carol Williams!

Nov 21, 2022 06:44 PM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Brandon - I never fully understood cryto so I didn't trust it.  I am glad I didn't get involved.

Nov 19, 2022 05:17 AM
Brandon Jordan

It does take time to learn what all is involved I tried to lay out in the NFT group here on ActiveRain the basics. I realize less people are interested when the charts are going down than when the charts on going up on prices.

 

https://activerain.com/groups/NFT

Nov 19, 2022 08:22 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Brandon,

I remember you trying to lay out the basics of crypto, which I never explored with everything else going on. What a scandal and downfall! Somehow nothing surprises me anymore. If it sounds to good to be true it probably is. 

Nov 19, 2022 10:41 AM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

I saw athletes and celebrities advertising crypt on television. I though to myself, "They do not know what they are talking about or what they are pusing".

Presto, chango and you have crypto. Or...not.

Nov 20, 2022 08:44 AM
Brandon Jordan

I do find that a funny talking point with crypto skeptics, celebrities hock everything under the sun including drugs and no one writes stories about that.

Nov 21, 2022 09:55 AM
Eileen Burns 954.483.3912
Trans State Commercial Realty Inc. - Fort Lauderdale, FL
FLorida Real Estate Connector

I think there are two different issues here.  The alternate being the coin.  As we move forward toward a digital/cashless society, we may see what a segment of the population calls Biden Bucks.  Not unlike the coin that Twitter initiated if I listened carefully to your presentations Brandon Jordan 

Nov 22, 2022 06:37 AM
Brandon Jordan

The federal reserve is reviewing a stable coin and how to regulate moving forward, to peg to the dollar that people can swap other coins into for safe keeping I am thinking that's what you might be referring to that I had mention in the presentation. The Twitter mention was about wallets being available on their site that you can tip creators via bat coins etc.  https://www.federalreserve.gov/econres/ifdp/stablecoins-growth-potential-and-impact-on-banking.htm

Nov 22, 2022 11:13 AM
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

I thought everyone heard about the FTX downfall ... hmmm, maybe not. To be honest, I never trusted it and now I am glad I followed my gut.

Nov 29, 2022 02:17 PM