FTX drama continues. In the recent developments Sam Bankman-Fried has been arrested in Bahamas at request of US government. Criminal case against SBF by US attorneys at SDNY has become public, SEC filed civil lawsuit and multiple US government agencies have been collaborating with the investigation to the fraudulent activities by SBF, FTX, and Alameda Research. Since the beginning of this drama, many have expressed their opinions about what have happened and many stories revolved around SBF himself. Kevin O'Leary's take on the character of SBF and FTX collapse has been softer than others. While many called SBF a criminal, a conman, a scammer, O'Leary has maintained an opinion that SBF didn't have ill-intent and perhaps made mistakes. During a congressional hearing today, O'Leary suggested that Binance and its CEO CZ may have been the reasons behind the collapse of FTX.
O'Leary described the FTC collapse events as a result of two major crypto exchanges competing against one another, and one destroyed the other. While O'Leary repeatedly outlined that this was his personal opinion, he said - "One put the other out of business". The relationship between CZ and SBF, be it rivalry, personal animosity, or business partnership, has been discussed in public in the early days of the FTX collapse. It is not secret, one of the main events leading up to FTX bankruptcy filings was CZ's tweet expressing an intention to sell FTT tokens held by Binance.
Binance had about half a billion dollars worth of FTT tokens. After an article was published showing FTX finances may have solvency problems, CZ was among some who questioned their investment and/or involvement in FTX. That was a bad news for FTX as such sell off would hurt the price of FTT. SBF in return, offered that Alameda Research would be willing to pay a good price for Binance's FTT tokens. CZ declined the offer and tweeted he that prefers selling in an open market.
Back forth between CZ and SBF didn't stop there. For a moment it seemed FTX could be saved, when both announced some kind of deal is being prepared between the two and Binance may end up acquiring FTX. This was a non-binding letter of intent by Binance, and they wanted to do their due diligence before jumping into this deal. Soon after, it was announced again that Binance did their DD and decided to stay away from FTX as possible. That kind was the beginning of the end of FTX.
While these events may have served as a catalysts for things that followed and lead to FTX bankruptcy, I disagree with the way Kevin O'Leary's conclusion that Binance took FTX out of business, intentionally. It was FTX that didn't have its customers' money and assets when they demanded to withdraw. It was FTX who broke the promise of not using its users' funds for trading or other purposes. It was FTX that failed to defend its token.
What I don't understand is why SBF offered CZ to buy FTT tokens over the counter. If they had the means to buy, wouldn't they be able to defend the sell pressure in the market with the same money with buy orders? Short term price drop of FTT would probably benefit them more in a long run. By now it is clear, they didn't have the ability or funds to do so.
CZ is a well-know figure in crypto world. But he too has shown disregard to the true decentralization, displayed dishonesty and have used customer funds in borderline criminal manner. I still remember the time when Binance used its user assets to stake and gain governance influence to help with an attack on network. There was also a time when CZ suggested rolling back blocks in bitcoin network. CZ or any other centralized exchange founders and leaders are not true crypto leaders and don't even come close to Satoshi's vision or character. In my opinion, they all are continuation of traditional financial system.
I do not agree with Kevin O'Leary assessment of this situation as one competitors putting another out of business. Intentionally or not. In this situation, it seems CZ did what any responsible CEO of an exchange would do, decided to get rid of toxic assets. This in fact, protects the investors of the company. I would think O'Leary as a successful business person who runs multiple companies would understand this simple concept. He probably does. Perhaps there is a strategy and motives for taking such a position for O'Leary, because ever since this drama started he continued sort of taking SBF's side and echoing the narrative that this was a mistake and not necessarily fraud. In one of the interviews, O'Leary even suggested that he would hire SBF, because he believe SBF is one of the greatest traders of our times.
There has been a lot of information revealed about FTX, Alameda Research and how they run their business. Until yesterday, it wasn't clear what is true, what is false, and what is just opinions. Yesterday, the current CEO of FTX and person in charge of bankruptcy process, John J. Ray testified in another congressional hearing and revealing a lot of interesting information that confirms there clearly was a fraudulent activity in FTX and Alameda Research. The level of fraud is just mind boggling. This not only demonstrates the level of greed by the FTX and Alameda, but also the greedy investment practices by some well-known entities and people.
Kevin O'Leary is known for his role as a shark in a TV show, Shark Tank. He has built a reputation to be the shakiest of them all, who is most of the time very stingy with his investment in business who make a pitch in the show. The show is entertaining, but other than that I don't see much of a value in it. Half of the deals done in the show probably don't even go through. But the point is, Kevin O'Leary has build the persona who questions everything in business and determining if it would be successful or not, and in determining if it would be a good investment or not. When it came to a real life deal, FTX, he has failed. As did many others as well. Now, he admits that he hasn't done his research and just trusted SBF.
However, it seems O'Leary didn't invest a lot in FTX compared to what he has gained as paid spokesperson for FTX. According to him, he has earned 15 million dollars for promoting FTX, and 3 million more to cover taxes. But he only invested a million in FTX, and had about 10 million dollars worth of assets in multiple FTX wallets. If he lost 11 million and made 15 million, it seems he still ended up in positive, unlike many ordinary users of FTX. I wonder how many people he influenced to use FTX that ended up losing their funds. I don't understand paid promoters. Especially those who are already rich, and claim to understand business. Why not promote something they truly believe in? At least that would be honest, even if it failed.
They main lesson from FTX drama we all can learn is that centralized exchanges have nothing to do with decentralization and decentralized systems. They are driven with greed and whatever their founders and CEO's say in public doesn't necessarily reflect what they do in practice. But also, we see lessons that listening to and taking financial advice from paid promoters is a bad idea. They promote anything without any research as long as they pay. At least people like Kevin O'Leary disclose that they are being paid, when they promote these products. There are many so called influencers who don't even mention that they are being paid to promote the products, platforms, or services.
Posted Using LeoFinance Beta
Thank you for your broad analysis of the situation, and for bringing Mr. O'Leary's input into the foreground! 😊
He does have some points about Binance's role in FTX's collapse - but ultimately, it was a single domino among an entire trail, and FTX's insolvency and missing funds were not the fault of Binance. SBF holds a great deal of accountability in the collapse. I think that's a fair assessment, given that he had the ultimate responsibility of keeping tabs on all funds and on liquid assets.
Mr. O'Leary's insistence on centralization is a point of concern for me. However... given cryptocurrency's current state, additional regulation may not be a bad thing while there is on-ramping of new users to the industry. I certainly hope that decentralized exchanges become dominant over time, and that they will eventually provide sufficient ease-of-use so that the average investor will be willing to join. Until then, centralized and tightly regulated exchanges may be the most substantial growth factors in this industry.
Kind of makes me wonder how involved Kevin O'Leary was. I would not expect his kind of point of view to blame someone else for the collapse unless he himself had a lot to lose form it falling over.
I dislike exchanges having their own token and it seems like it’s a dangerous road crypto keeps going down. Even more so when they start using that tokens value for leverage and collateral.
I do agree at least Kevin O'Leary disclosed he was being paid to promote it. I would not be shocked however if they can go after him somewhat for not fully disclosing things down to the dotted I and the crossed T of the law.
I used to think Kevin O' Leary was a pretty sharp guy but he really just flushed his reputation down the drain with these kind of comments. He's out there pumping regulation as the solution for everything, maybe that's what his purpose is to promote this agenda.
if we were to judge the events narrated in this post it would actually seem that Binance was one of the causes of the collapse of FTX. there is most likely a great rivalry between these digital exchanges
I don't agree with Kevin, the collapse of FTX was due to mismanagement of customer funds.
All is fair in love and war I hear. Sadly this one has an huge effect on the industry setting us back many years.
People will not just focus on researching what projects can do. But also the people behind them and from my observation people are never enough. Giving the crypto space another mountain to climb. Beautifully it’s taking the space where it has to be. Not depending on the necessary evil of centralized exchanges
The fact that O'Leary is defending SBF to such a degree really makes it seem like there is some sort of relationship there. Maybe SBF has some dirt on O'Leary and O'Leary wants to stay on his good side. Like maybe all of those FTX wallets were supposed to be secret and were being used to launder money or for tax evasion somehow? I'm just speculating wildly here of course. But it is suspicious. It could just be about his reputation though I suppose. This doesn't make him look like a good business man - getting involved with FTX and presumably telling others to do so as well.
Maybe O'Leary visits the new Epstein Island and buggers kids on SBF's beanbags?
🤣
🫣
🤫
Centralized exchanges are bad but I can't seem to think why FTX wasn't in the wrong given what he did knowingly. My impression of Kevin O' Leary has dropped a lot and while I don't like Binance, I think it's been doing quite well even with the withdrawals. I don't think there is anything wrong with calling out people when you think they are wrong but blaming FTX and people losing money on Binance isn't right. FTX and SBF were the people using the customer funds.
Posted Using LeoFinance Beta
FTX going bankrupt is own fault. Misuse of funds and fraudulent transactions, not binance mistake !
Indeed, CZ couldn't do this without the shady business of FTX. In the end, a CEO just did what was in his best interest (and capitalism). I'm sure it wasn't a light decision, CZ must have saw the backlash on all exchanges.
This trade war between the USA and China does not stop anywhere, Binance is just a pawn between the big players.
Posted Using LeoFinance Beta
Great summary!
I think ftx owner use people's money on his own profit. Thats the big reason of ftx crash. People's loses million of dollars at single night. Some people's attempt sucide due to due to loss his all savings in ftx. Hopefully government take some stick Action about ftx owner. Thanks for sharing your valuable experience with us.
This is a bankster scam to target the exchanges and make them centralize control over the now wild west. This is all a bankster fraud scam. It was all planned, Binance is just being blamed because they can be. They are targeting exchanges because that is the weak point in the crypto market and everyone knows it. Coins, wallets are all secure and there is 20,000 coins. Exchanges are limited, can be hacked and have stupid coins associated with them that get pumped and dumped by most exchanges on regular cycles. Hence why I keep $0 in exchanges and only use exchanges like Bittrex.
I think less and less of Kevin every day. What a dirtbag.
😂😣 yup, Kevin the stingy poker! :P
and yea, toxic assets.
Being a richly Paid spokesman for FTX says it all.
Posted Using LeoFinance Beta
that guy is such a useless homosapien
Of course I enjoyed watching "Mr. Fantastic" have his wings clipped. He should never again be seen as an investing guru.
This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.
Please contribute to the community by upvoting this comment and posts made by @indiaunited.
Congratulations @geekgirl! You received a personal badge!
Thank you for participating in the Leo Power Up day.
You can view your badges on your board and compare yourself to others in the Ranking
Check out our last posts:
Congratulations @geekgirl! Your post has been a top performer on the Hive blockchain And you have been rewarded with the following badge
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out our last posts: