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Is It Crypto Currency or Klepto Currency?
Allegations are being made about FTX, a cryptocurrency investment company that donated $40 million dollars to political campaigns. 92% of these donations went to Democrat candidates.
From a Fox Business News report:
FTX founder Sam Bankman-Fried denied speculation on Twitter that he had flown to South America after the cryptocurrency exchange filed for bankruptcy.
When asked whether he had flown to Argentina, as rumors swirled on social media, the former chief executive told Reuters via text message that he was in the Bahamas, where the company is headquartered.
Bankman-Fried, 30, served as the CEO until Friday.
He also denied “secretly” transferring $10 billion of customer funds from FTX to his trading company Alameda research and denied implementing a “backdoor” in FTX’s bookkeeping system.
“We had confusing internal labeling and misread it,” he said of the $10 billion transfer.
Reuters reported, citing two people familiar with the matter, that at least $1 billion of customer funds had disappeared, with records revealing the financial hole.
When asked about the missing funds, Bankman-Fried responded: “???”
In a release, FTX said John J. Ray III had been appointed CEO in his stead.
Also on Saturday, FTX said that it was moving funds into offline storage after reporting “unauthorized transactions.”
Analysts said millions of dollars worth of assets had been withdrawn from the platform.
Allegations are being made that financial aid sent to Ukraine might have been a money laundering scheme involving FTX and some politicians in Congress. Allegations are also being made that FTX accounts were ‘cracked’ and money taken from those accounts ended up in the campaign coffers of Democrat and some Republican candidates.
Allegations are not proof of wrongdoing; an investigation needs to take place.
In my opinion Crypto Currency investing is somewhat sketchy, especially when it involves offshore investment firms and the involvement of politicians that may have received $40 million dollars in campaign contributions.
Published in Finance
This is the initial report from the bankruptcy guy.
https://www.zerohedge.com/political/worse-enron-new-ftx-ceo-slams-unprecedented-failure-corporate-controls
Here’s a pretty good recap of the scandal: