Crypto-bros Bring Down FTX, the Biggest Fraud in America


I wrote for the Acton Institute about a remarkable case that looks like fraud and assorted crimes which led two crypto-currency exchanges, FTX and FTX.US, valued this year at $40 billion, to drop to nothing and declare bankruptcy. A related hedge fund, Alameda Research, went down, too. This magical futurism story turns out to be as old as modernity—a bank run caused by revelations of fraud. It’s a story conservatives should not be neglecting!

Read my essay, and you’ll learn about the big political donations, and the remarkable post-bankruptcy advertising from the NYT (now the Washington Post, too). The press has mostly ignored a shocking story again. One important aspect of the matter is that the conman, a Mr. Samuel Bankman-Fried, only went from trading to crypto-currencies in 2018 and then, in 2019, started the business that lifted him to elite liberal glory in two years, and plunged him now into, well, into trying to run from the authorities.

He bragged that he knew nothing of crypto before becoming part of it, and I’m inclined to think he’s telling the truth. I’d add, he didn’t care about crypto-currencies afterward, either. He stole people’s money and put it into every elite liberal concern you can think of from pandemic prevention and all sorts of “philanthropy” to Dem political campaigns to activist journalism to buying celebrity as a cover and boost for his crimes. Remarkably, he managed to sucker not just liberal elites who can barely count, but also very large institutional investors, including the most famous VC firm in Silicon Valley, Sequoia.

The con man was brought down by the crypto-bros, some of whom reported on suspicious business and the others of whom participated in a bank run set off by the man who runs the biggest crypto-currency exchange, Binance, Zhao Chaopeng. That was last weekend.

I leave you below with some tweets revealing more of the institutional corruption: Mr. Bankman-Fried was an MIT student–his business partner and paramour’s father taught there and they seem to have a connection to the guy now running the SEC.

Twitter avatar for @JagoeCapital

J//G0Ξ 👁️《TYR》 @JagoeCapital

Did you know: Alameda CEO @carolinecapital‘s Dad, Glenn Ellison is the Department Head of Economics at @MIT? And… Prior to getting appointed to the SEC, @GaryGensler was a Professor for the Practice of Global Economics & Management at @MIT… So essentially: Gary 🤝 Glenn 🤯

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  1. The Reticulator Member
    The Reticulator

      I came late to this news and have been wanting to learn more of the story. This helps.

    • #1
  2. Titus Techera Contributor
    Titus Techera

    You’re very welcome!

    • #2
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