banner points...

bad blood early on between cz and alameda over an attempt to exploit btc futures at binance.

ftx shifted from delta neutral trading strats to directional plays (gambling).

ftx wanted/needed more capital to gamble with so they would take a coin they own almost all of, then sell 1% for $1m and use that to claim a 100m valuation on their holdings with that coin. they would then take this valuation to lenders and receive loans based on that paper value. they would then take huge margined bets with that capital. these bets were highly profitable. for a while.

sam funneled tremendous amounts of money into the democrats because he wanted to them to bless ftx with regulatory frameworks that would essentially diminish legal exposure for ftx.

the market turned and suddenly all these bets get margin called and the lenders call in the loans because of ftx's diminishing capital. at this point, sam uses client funds to pay off the loans.

cz (see previous beef) smells blood, calls out ftx liquidity problems, and creates a bank run.

the ftx empire falls.

its unclear at this point what aspects of this are actually illegal / who would have jurisdiction. the tweets assuring clients that the integrity of their accounts was assured were lies and morally fraudulent but its simply not obvious if it constitutes a crime in the bahamas, for example. thats the shoe that has yet to drop i suppose.

in the meantime sam is actually trying to raise capital to make clients whole. no bites yet apparently.

it actually might be possible that the bahamians are putting off arrest until sam has exhausted his attempts to raise capital to make victims whole. apparently quite a few bahamians had money on ftx. it would explain quite a lot actually.

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I think we can definitively say that bitcoins are DONKDOWN

The Ruggening has begun.




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apple has won the rights to lewis' book.

amazon has ordered an 8 part miniseries on ftx.