It was bound to happen. Crypto currency crashed. And the FTX trading platform when down along with it thanks to CEO Sam Bankman-Fried, the former golden boy of crypto currency.
He’s accused of taking investor funds and loaning them to his other company, Alameda even though the FTX investors agreement specifically stated that their funds wouldn’t be loaned out in any way.
I watched his early interviews he says that he wasn’t aware of co-mingling FTX funds with Alameda. But then I watched and listened closer. Check this out:
He didn’t say ‘didn’t’. Here’s why. Deception leaks out in body language, words and tone. It takes 6 organs to make a sound and they’ll shut down on you during deception. And this is one way it sounds. Another may be a hitch in the middle of a word. Listen for it and it’s unmistakable. It’s very hard to do either of these on demand.
Just a couple more facts:
In later interviews, he admitted that he did know that the loan to Alameda took place. He’s no longer the CEO of FTX and was extradited to the US on fraud charges.
This failure was bigger than Bernie Madoff’s ponzi scheme and also Enron’s collapse. The board of FTX brought in the same CEO who took over Enron after it’s collapse. Who knew an after-major-collapse-CEO was a niche? He was quoted as saying that this was the most unsophisticated fraud he’d ever seen. They didn’t even try to cover tracks. The money went straight from FTX to Alameda.
If you’re wanting to go a little deeper into the FTX saga, here’s the longer statement I took this clip from. He talks a bit more about the platform and what was and wasn’t going on.
When I can help you make it a a deception free New Year give me a call!