At the same time America was embroiled in the contentious 2022 midterm elections, another saga began unfolding in cryptocurrency markets. The crypto exchange FTX went bankrupt, causing a mass selloff of currencies and wiping out investors’ money.

As the confusion and outrage over stolen elections was being sorted out, the public was alerted to the FTX crisis, and learned it has implications in that same election, the war in Ukraine, and schemes to crush cryptocurrency under regulations and impose centralized control over people’s finances. I have collected articles and arranged them in a “cheat sheet” to summarize the mess so far.

Cointelegraph- FTX’s Ongoing Saga: Everything That’s Happened Until Now:

Cointelegraph.com’s article is a handy timeline starting November 2, 2022. It chronicles key events:

Nov. 2: Reports claim SBF-founded company held significant amounts of FTT- “The saga kicked off on Nov. 2 after reports that a leaked balance sheet from the Sam Bankman-Fried-founded trading firm Alameda Research suggested the company held a significant amount of FTX Token, the native token of the FTX cryptocurrency exchange.

“A large trading firm holding so much of one asset concerned the crypto community and led questions regarding the relationship between Alameda and FTX.”

Nov. 5: Trackers pick up significant FTT movement to Binance- “On Nov. 5, the Twitter account Whale Alert, which tracks significant on-chain crypto movements, notified its users that nearly 23 million FTX Token, worth over $584.5 million, moved onto Binance. At the time, the amount was worth around 17% of FTT circulating supply.”

Nov. 6: Alameda CEO explains the company’s balance sheet- “Alameda CEO Caroline Ellison tried to quell any panic in a Nov. 6 tweet, saying the leaked balance sheet wasn’t reflective of the whole story and noting that the specific sheet was only for “a subset of our corporate entities,” as other assets worth over $10 billion “aren’t reflected there.””

Nov. 6: Binance moves to liquidate FTT holdings due to “recent revelations”- “Later on Nov. 6, Binance CEO Changpeng “CZ” Zhao said his exchange would liquidate its entire FTT holdings, citing “recent revelations that have come to light” believed to be in reference to the Alameda balance sheet. Zhao said Binance held around $2.1 billion equivalent in Binance USD (BUSD) and FTX Token due to its FTX divestment last year but didn’t clarify Binance’s current FTT holdings.

“He added it would sell the tokens in a way that “minimizes market impact,” expecting the token sales to take “a few months to complete.””

Nov. 7: FTX “bank-run” begins, exchange addresses sluggish withdrawals– “With reports and rumors swirling, FTX users began to withdraw their funds from the exchange out of fear it would go bust, and commentators implored those who hadn’t already to get their crypto out of FTX.

“Reported data from Nansen on Nov. 7 showed that stablecoin (cryptocurrencies that are pegged to fiat currency) outflows on FTX reached $451 million over seven days, and users began to report sluggish withdrawals on FTX, with the exchange addressing the withdrawal complaints by assuring users everything was running smoothly.”

Nov. 8: FTT price and crypto markets start to waiver- “Some analysts began to warn on Nov. 7 of a significant price drawdown of FTX Token due to the series of announcements, and on Nov. 8, FTT price dove around 30% to around $15.40 from $22 in a matter of hours. The price of Bitcoin also started to buckle with fears that FTX could soon be going under.”

Nov. 8: FTX faces a “liquidity crunch,” moves to sell exchange to Binance– “In a shocking announcement, FTX CEO Sam Bankman-Fried said on Nov. 8 that FTX had “come to an agreement on a strategic transaction” with Binance for the exchange to help cover what he called a “liquidity crunch.” He added “all assets will be covered 1:1” and cited this as the main reason FTX asked Binance to step in.

“Binance CEO Changpeng Zhao said shortly after that Binance had signed a nonbinding letter of intent to acquire the exchange, but noted that it reserved the right to “pull out from the deal at any time.””

Nov. 9: Binance officially backs out of the agreement– “Less than 48 hours after the initial announcement by Binance CEO Changpeng Zhao that it could move to buy FTX, Binance announced on Nov. 9 that it would not be pursuing the acquisition of FTX.”

Nov. 9: Crypto market in a sea of red- “The crypto market responded to the news with investor sentiment turning fearful and Bitcoin’s price hitting a multiyear low of $15,600. Analysts expected further downside, suggesting Bitcoin could settle around the $12,000 mark.”

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Nov. 10: Maxine Waters warns of “major consequences” for users of unregulated crypto firms, citing FTX- “The chair of the United States House of Representatives Financial Services Committee pushed for additional federal oversight of crypto trading platforms and consumer protection amid FTX facing liquidity issues.

“In a Nov. 10 statement, Waters cited FTX’s difficulties as the latest example of incidents “involving the collapse of cryptocurrency companies” and how such events could potentially impact consumers in the United States. The committee chair pushed for legislation establishing a framework for crypto assets, highlighting her efforts with Financial Services Committee ranking member Patrick McHenry in a bill aimed at regulating stablecoins.”

Nov. 10: Republican lawmaker claims SEC Chair Gary Gensler was coordinating with FTX “to obtain regulatory monopoly”- “In a Nov. 10 tweet, Emmer criticized Gensler for “run[ning] to the media” amid FTX’s liquidity issues causing ripples throughout the crypto market. According to the Republican lawmaker, his team was looking into the SEC chair’s alleged collaboration with SamBankman-Fried and FTX, but only cited reports presented to his office as evidence without providing details.”

With these events setting the stage, many other stories sprang up, showing that the existence of FTX is a scandal for the ages.

The Gateway Pundit- FTX Appears to Be a Political Ponzi Scheme Running Dollars to Politicians and Through Ukraine:

“…The FTX crypto company gave at least $40 million to Democrat candidates and causes in the midterms.

The CEO of the failed company had numerous relationships as pointed in Fortune:

“In addition to this, Daily Caller lists many of the lawmakers who Sam Bankman Fried was bankrolling who oversaw the institution that was supposed to keep on eye on companies like FTX:

“The far-left Washington Post reported on March 3 that Ukraine was dealing in crypto. ‘The Ukrainian government has gathered more than $42 million in cryptocurrency donations since Saturday, plus digital artwork including a limited edition worth roughly $200,000, according to blockchain analytics firm Elliptic. The challenge is how the country cashes in on these assets to fund its war needs.’

Uphold- Invest In Bitcoin And More On A Platform That Won’t Lend Your Money:

The Gateway Pundit- Coincidence? Zelensky Calls for Peace Just Days After FTX Is Caught Funneling Millions of Ukrainian Aide Dollars to US Democrats:

“The CEO of now-bankrupt FTX admitted that FTX was nothing more than a laundromat for the Ukrainian government.

“On Sunday The Gateway Pundit posted an interview where Bankman-Fried admitted that FTX was laundering money for the Ukrainian government.

“And, just like that… On Monday Ukrainian leader Volodymyr Zelensky called for peace with Russia.”

CryptoNews.net- Anti-Crypto US Senator Elizabeth Warren Had Close Ties With Sam Bankman-Fried:

“In the wake of the recent FTX collapse, Stacks co-founder Peter Shea has pulled back the curtains on a messy web of Sam Bankman-Fried’s myriad romantic and political relationships, including US Senator Elizabeth Warren.

“In a Twitter thread, Shea revealed that Bankman-Fried’s parents, Stanford law professors, had long been associated with anti-crypto Senator Elizabeth Warren’s Democratic party. Warren is arguably one of the most vocal crypto opponents on Capitol Hill.

“According to Shea, Bankman-Fried’s father, Joe Bankman, endorsed a tax bill introduced by Senator Elizabeth Warren in Apr. 2016. His mother, Barbara Fried, is in charge of a political action committee that helps secure Democratic funding from Silicon Valley companies.

“Shea points out the irony in Warren’s response to the FTX collapse, with the Massachusetts senator generalizing that the crypto industry needs “more aggressive” enforcement and “stronger rules,” while failing to mention Bankman-Fried’s $39 million donation to her political party for the U.S. midterm elections.”

Coindesk- US Crypto Investors Sue FTX’s Sam Bankman-Fried, Company’s Celebrity Endorsers:

“The plaintiffs in a class-action suit claim that the heavily-marketed FTX yield-bearing crypto accounts were actually a Ponzi scheme.

“Crypto investors in the U.S. have filed a class-action suit accusing FTX CEO Sam Bankman-Fried and the company’s host of paid celebrity promoters, including NFL quarterback Tom Brady, comedian Larry David, tennis player Naomi Osaka and NBA team the Golden State Warriors, with fraudulently promoting FTX yield-bearing account (YBAs).”

Coindesk- Newly Elected US House Whip Emmer Downplays FTX Meltdown, Cheers Crypto:

“Rep. Tom Emmer (R-Minn.), who Republicans have picked for a key leadership role in the next Congress, dismissed policymakers’ crypto anxiety after the dramatic collapse of global crypto pillar FTX and said coming up with digital assets legislation next year “could be a lot of fun.”

“Crypto advocates in Washington routinely maintain that crypto policy is a non-partisan issue that can move forward even in a divided Congress. However, this week’s rhetoric from Democrats such as Sen. Sherrod Brown (D-Ohio), the chairman of the Senate Banking Committee, has painted a harsh picture of crypto suspicion. And many Republicans have been defending the industry, arguing to separate the actions of FTX from the crypto technology underpinning the business.”

Coindesk- Opinion: The End of the ‘Centralization Era’ in Crypto:

“When we look back at November 2022, we may well view it as the end of the “Centralization Era” in crypto.

“Centralized crypto exchanges offered consumers an appealingly convenient way to invest in crypto. However, the centralization era also led to disregard for consumer protection and massive meltdowns that have affected tens of millions of people and hundreds of billions in assets.

“Crypto was founded upon the idea of true individual ownership and self-sovereignty as a response to the 2008 financial crisis. It was built to be different, where individuals held the keys to their own wallets and could trade without an intermediary.

“The era of decentralization is the only viable path forward. Crypto must return to its roots and take back power from corrupt institutions that have abused their power and influence.”

Cointelegraph- DeFi Platforms See Profits Amid FTX Collapse And CEX Exodus:

“On-chain data flashed positive for DEXs (decentralized exchanges) and an increase in protocol revenue, even as markets corrected due to FTX’s insolvency.

“Combined with the migration away from centralized exchanges (CEXs), the volatile crypto market has users trading in record numbers.”

Gateway Pundit- FTX Founder Donated To Six RINOs Who Voted To Impeach Trump:

“As most are well aware by now, the disgraced founder of FTX Sam Bankman-Fried was the Democrat party’s second-largest donor just behind George Soros.

“Forbes reported last year that Bankman-Fried also donated to six RINOs who voted to impeach President Trump.

Wall Street On Parade- FTX Was Creating Money Out of Thin Air Like the Fed; and Trading Its Own “Stock” Like the Wall Street Mega Banks in their Dark Pools

“If one looks very closely at the structure of FTX, the collapsed crypto exchange now in bankruptcy and causing everything it touched to teeter, it was actually using a technique of the U.S. central bank – the Fed – to create money out of thin air; and a technique we’ve been writing about repeatedly since 2014, Wall Street mega banks trading their own stocks in their own Dark Pools, effectively making a market in their own stock.

“Let’s start with our comparison of what FTX was doing to the Fed’s creation of money out of thin air by pushing an electronic button. You don’t have to take our word for what the Fed is doing. The Fed actually created an educational video to explain how it creates electronic money out of thin air. That video was released in 2011 and the spokesman for the Fed says this in the video: “The Fed will not keep buying large amounts of securities on an ongoing basis,” noting that “Its purchases are a temporary measure to help the economy recover.”

“CNBC explains what was going on with the FTT token as follows: “The source explained that Alameda could post the FTT tokens it held as collateral and borrow customer funds. Even if FTX created more FTT tokens, it would not drive down the coin’s value because these coins never made it onto the open market. As a result, these tokens held their market value, allowing Alameda to borrow against them – essentially receiving free money to trade with.””

Daily Mail UK- Bombshell court filing claims Bahamas GOVERNMENT ordered fallen crypto CEO Sam Bankman-Fried to hack FTX systems and transfer assets to the island nation AFTER he filed for bankruptcy:

  • Sam Bankman-Fried was allegedly directed by Bahamas regulators to gain unauthorized access to his collapsed crypto platform after quitting as CEO
  • FTX made the bombshell claims in an emergency legal filing in the US Bankruptcy Court in Delaware on Thursday 
  • Bankman-Fried was accused of ‘hacking’ FTX systems to transfer digital assets to Bahamas government while he was ‘effectively in custody’
  • SEC chair Gary Gensler is now under scrutiny over his failure to prevent the implosion of FTX  
  • The crypto platform’s new CEO John J. Ray III, a veteran lawyer guiding the company through its bankruptcy, said the situation at FTX was ‘unprecedented’