Image Credit: Craig Barritt / Stringer / Getty 
While most Americans are scratching their heads on the exact happenings of the collapse of the digital asset exchange called “FTX,” one YouTuber has released an excellent explanation of what is now being called the biggest fraud in crypto history.
In a very concise video, a YouTuber named “Nobody Special Finance” unloaded on Sam Bankman-Fried, the soon-to-be incarcerated ex-CEO of the now-infamous exchange.
“The truth is, Sam Bankman-Fried is a liar and a crook,” said Nobody Special. “His personal crypto, FTX Token, was basically a Ponzi scheme … He used his Ponzi token as collateral to borrow billions of real dollars that he couldn’t pay back … He then used those real dollars to build an empire out of dying companies.”
“[Sam Bankman-Fried] then sold people cryptos like Bitcoin, or so they thought. What they really bought was an IOU.”
Watch the full video below that further details Bankman-Fried’s felonies & political donations to President Biden and more:
This morning, Bankman-Fried stepped down as FTX CEO and FTX, with approximately 130 additional affiliated companies (together, the “FTX Group”), filed for Chapter 11 bankruptcy protection.
Below is the press release:
FIX Group Companies Commence Voluntary Chapter 11 Proceedings in the United States Begin Orderly Process to Review and Monetize Assets for Benefit of Global Stakeholders John J. Ray III Appointed Chief Executive Officer; Sam Bankman-Fried Resigns
FTX Trading Ltd. (d.b.a. FTX.com), announced today that it, West Realm Shires Services Inc. (d.b.a. FTX US), Alameda Research Ltd. and approximately 130 additional affiliated companies (together, the “FTX Group”), have commenced voluntary proceedings under Chapter 11 of the United States Bankruptcy Code in the District of Delaware in order to begin an orderly process to review and monetize assets for the benefit of all global stakeholders.
John J. Ray III has been appointed Chief Executive Officer of the FTX Group. Sam Bankman-Fried has resigned his role as Chief Executive Officer and will remain to assist in an orderly transition. Many employees of the FTX Group in various countries are expected to continue with the FTX Group and assist Mr. Ray and independent professionals in its operations during the Chapter 11 proceedings.
“The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders,” said Mr. Ray. “The FTX Group has valuable assets that can only be effectively administered in an organized, joint process. I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness and transparency. Stakeholders should understand that events have been fast-moving and the new team is engaged only recently. Stakeholders should review the materials filed on the docket of the proceedings over the coming days for more information.”
Also this morning, Bankman-Fried released his latest apology on Twitter:
Hi all,
Today, I filed FTX, FTX US, and Alameda for voluntary Chapter 11 proceedings in the US.
I’m really sorry, again, that we ended up here.
Hopefully things can find a way to recover. Hopefully this can bring some amount of transparency, trust, and governance to them.
Ultimately hopefully it can be better for customers.
This doesn’t necessarily have to mean the end for the companies or their ability to provide value and funds to their customers chiefly, and can be consistent with other routes.
Ultimately I’m optimistic that Mr. Ray and others can help provide whatever is best.
I’m going to work on giving clarity on where things are in terms of user recovery ASAP.
I’m piecing together all of the details, but I was shocked to see things unravel the way they did earlier this week.
I will, soon, write up a more complete post on the play by play, but I want to make sure that I get it right when I do.
Inside Big Tech’s Voting Manipulation Algorithm, with Dr. Darren Beattie