You might have thought that these crazy cefi yield/lending schemes blowing up left and right are just risky/mismanaged business models, or at worst, independent frauds. But TIL that they appear to be (legalized?) layered schemes in which SBF is an apex predator.
https://www.youtube.com/watch?v=BMGr4yyE1uc
A collaboration of SBF, FTX, Alameda, (others?): Are masquerading as an independent broker/MM/LP; who receive crypto and USD from intermediate fraudulent shell corporations; then ...
mark it as collateral/margin on behalf of these fraudulent corporations
transparently see the irresponsible leverage these entities are taking;
in fact provide that leverage to them;
have full knoweldge that these are circularly backed shell assets;
valued almost entirely based on the leverage that SBF himself is providing;
And assumes beneficial ownership after the inevitable margin call / liquidation.
SBF and FTX then use those exact same assets to provide "emergency capital" to ...
a gain a beneficial position in a restructured version of the collapsed shell;
lock the the victims out of any ability to receive back their underlying assets;
convert the victims' claim into some derivate product of the shell company;
where they will promise to "create value" on an "improved and sound business model" ...
... Which is really just corporate euphamism for: "Just wait a few years until we can jumpstart a new cycle of leveraged fraud with a combination of central bank money printing and unbacked stablecoins"
Cherry on top: He admits that FTX could backstop the market by just buying it all with the assets acquired in their layered fraud ... but that they won't because ... they haven't liquidated enough victims assets yet a responsible price has not been achieved per their economic models.
Sorry to all of you that lost money to these scumbags. Hope you can get some of it back.
Edit: Did I mention he's part of the WEF
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