The headline of an article posted at Zero Hedge and written by Yves Smith of NakedCapitalism.com included a question that everyone should be asking; not just reporters: What happened to the $3.3 billion that FTX former CEO Sam Bankman-Fried borrowed? Perhaps we’ll get the answer soon as Caroline Ellison, the former CEO of FTX’s subsidiary, Alameda Capital, which was “ground zero” for the FTX liquidity crisis, was spotted in New York City in recent days. Ellison may be ready to rollover on Bankman-Fried as an aspect to one of the most powerful human forces: self-preservation.
Before getting to the brass tacks of this update, here are the previous six articles in this series and a couple of recent items relevant to the Keystone of Corruption – Ukraine:
- The Keystone of Corruption: Ukraine and the FTX Scandal [on Substack]
- The Keystone of Corruption: Ukraine, the FTX Scandal, PrivatBank, the National Bank of Ukraine and Ihor Kolomoyskyi [on Substack]
- The Keystone of Corruption: “TRUMPLOSE,” FTX, Sam Bankman-Fried and Ukraine Scandal Envelops Joe Biden, Newly Elected Senate Minority Leader McConnell and Others [on Substack]
- The Keystone of Corruption: FTX & Ukraine Scandal Continues to Unravel Without Appropriate MSM Coverage and for Good Reason – Everybody Goes to Prison [on Substack]
- The Keystone of Corruption: Ukraine, the FTX Scandal, Kevin McCarthy Guilty as Charged, Most Dangerous Times are Here [on Substack]
- The Keystone of Corruption: FTX, Ukraine, Money Laundering Operations, the FBI and the Crypto Cookie Jar [on Substack]
Recent related content:
- The Keystone of Corruption: The Unmitigated Flow of U.S. Dollars to Ukraine
- The Latvian Linchpin: How Latvia Interfaces with Ukraine, FTX, NATO, 5 Eyes, Obama, Biden and Burisma
To really understand the depth and breadth of the complexity and criminality entailed in all of this; and as it relates to a patently corrupt and criminal federal apparatus that specifically includes the Department of Justice and the Federal Bureau of Investigation, be sure to read 1-the second linked article detailing Ukraine and Ihor Kolomyskyi and 2-the sixth linked article detailing how the FBI refocused on money laundering crimes on the eve of Donald Trump’s 2016 electoral victory.
Our source article penned by Smith is Earth To Reporters: Why Is No One Asking SBF What Happened To The $3.3 Billion He Borrowed? From it,
Disgraced crypto chief Sam Bankman-Fried has been talking to reporters, including at the New York Times (the famed Andrew Ross Sorkin Dealbook interview), the Financial Times, and the Wall Street Journal. Despite the fact that it’s generally seen as a very bad idea to say anything about your past conduct when you are a litigation target, and likely for a criminal case, and SBF has said his lawyers are opposed to talking to the press, SBF is nevertheless swanning about on his media tour.
Even though SBF got a bit of pushback from Sorkin on the question of co-mingling of funds when SBF tried playing, “Oh it was sort of allowed and anyway things were a mess,” he and other reporters didn’t probe very hard once they got his next layer of excuses: “Oh I didn’t mean to do anything bad, I don’t have access to records any more and my memory is fuzzy, and I really didn’t have anything to do with Alameda.”
So Alameda made $4.1 billion in loans to cronies, mainly SBF, and we are to believe that SBF had nothing to do with that?
Yves Smith of NakedCapitalism.com
This is the beauty of enterprise fraud. When fraudsters speak whether voluntarily or as a matter of being compelled to do so, they all use the same vernacular that is featured in Bankman-Fried’s problematic remarks like “sort of allowed,” “things were a mess,” “I didn’t mean to,” “don’t have access,” “my memory is fuzzy,” “screwed-up,” “made a lot of mistakes,” “didn’t knowingly commingle funds,” and “I didn’t ever try to commit fraud on anyone.”
Go to any prison. Interview any prisoner. None of them did it and if they did, none of them meant to.
Criminals all use the same vernacular.
More importantly, criminals all use the same vernacular because the words are specifically selected to protect against self-incrimination in public statements or testimony.
We see evidence of this in the recent 7-hour testimony of perhaps the most notorious fraudster and criminal of our generation, Dr. Anthony Fauci. It derives from his deposition obtained by Missouri Attorney General Eric Schmitt.
Fauci’s duplicitous testimony rested on a flimsy house of cards comprised of “vaguely familiar,” “trying to understand,” “I believe that my recollection,” “the possibility,” “I might have,” “I don’t recall,” “I wanted to know,” “I’m not sure exactly,” “what appeared to me,” “certainly is a possibility,” “trying to figure out,” “they might have,” “possible,” and “I don’t recall anything.”
Fauci answered “I don’t recall” 174 times.
Fauci lied no fewer than 174 times.
Let’s not forget that in remarkable and patently dishonest fashion; and respective to criminality rising to the level of the worst crimes ever committed against humanity, the self-anointed, self-ascribed and omnipotent Fauci previously asserted his authority to essentially proclaim for himself, “I am science,” noting that Fauci equated the attacks on himself to attacks on science.
Funny thing, though, because once under oath and subject to the full penalty of law for perjury, Mister “I am science” immediately became Mister “I am amnesia.”
Importantly and whether Americans care to acknowledge and accept the evidenced fact set, Bankman-Fried and Fauci are directly enmeshed in all of this. Both are fraudsters and criminals of the highest order and both are being insulated and protected by a fully rigged system. Bankman-Fried’s crimes, fraud and money laundering operations in Ukraine benefited the same politburo, criminals and thieves that stole the last two elections [2020 and 2022], wrecked the economy and forced and coerced 79.5% of the U.S. population to participate in human genetic experimentation via mRNA injections only available by fraudulently predicated Emergency Use Authorizations; all as permitted by Fauci’s fraudulent “pandemic.”
The aggregate of it all distills down to this: One of these criminals killed millions and the other stole billions and neither can remember a singular, granular detail about any of it.
The entire system is rigged against ordinary Americans, manifests as two-tier justice and permits these fraudsters and criminals to commit the worst crimes against humanity with absolute impunity. You get what you tolerate, America. Tired of tolerating it yet? I sure as hell am.
The FTX details in Smith’s piece come from the Financial Times and from it, we get the straight skinny on what is certain to be an abject criminal heist of investor funds [emphasis added]:
Core to Bankman-Fried’s account of how FTX ended up with a roughly $8bn shortfall of client assets was excessive lending by the exchange to Alameda, which ploughed the money into venture capital investments and doomed bets on digital tokens.
Bankman-Fried deflected the FT’s questions about the excessive borrowing and soured investments that ultimately sank Alameda, blowing a hole in FTX’s finances, and would not be drawn on the legal consequences he may face. He said he deliberately avoided getting involved in Alameda’s trading and risk management to avoid conflicts with his position as chief executive of FTX, and neglected to monitor the risk they posed to the exchange.
The Financial Times
Let’s be clear. Bankman-Fried’s above emphasized statement is a clear indicator of a deliberate maneuver to leverage and apply plausible deniability in his own effort at self-preservation.
It appears that these pathetic miscreants right out of Revenge of the Nerds – Bankman-Fried and Ellison – are engaged in a winner-take-all, battle royale that presents as self-preservation:self-preservation.
I love it when they begin eating their own and Ellison’s presence in NYC is highly problematic for Bankman-Fried’s impotent and anemic defense. These are clear indicators that after retaining an iconic Clinton lawyer, Ellison is already rolling over on Bankman-Fried in cooperation with SDNY.
Our evidence comes in another Zero Hedge item: Alameda’s Caroline Ellison Spotted In NY Amid Speculation She Is About To Roll On SBF After Hiring Iconic Clinton Lawyer.
Even more problematic for Bankman-Fried are public comments by new Twitter boss Elon Musk who indicates that the Ukrainian-based money laundering operation that funneled U.S. taxpayer money back to the same corrupt and criminal politburo that voted to send it – and yes, it includes both donkeys and elephants – is far greater than previously reported at an estimated $1 billion.
What does Musk know and when did he know it, as they like to say? Inquiring minds would like to know.
In all of this, don’t forget who Ellison’s father is – Glenn Ellison – respective to her newly obtained counsel. This is from the fifth article linked above: ““Gary Gensler is the current SEC Chairman under the Biden regime. Gensler was Hillary Clinton’s Campaign CFO and funded the notorious Trump-Russia lie. Gensler also taught at MIT with Glenn Ellison who is the father of Caroline Ellison. FTX CEO Sam Bankman-Fried was given favorable treatment from Gary Gensler. It was Gensler who not only failed to spot the FTX crime — he appeared set to go along with a legislative strategy that would have given SBF a regulatory moat and made him king of the U.S. crypto market.”“
Friends with benefits. All in the family.
Everything this criminal federal apparatus and politburo seeks to control and manipulate has been or is being moved to digital platforms like court filings, elections and currency. Digital platforms, digital currency and cryptocurrency are perfect means to defraud and launder money; just ask Sam and Caroline.
In light of the American people’s apparent intent to keep on tolerating all of this criminality, the movement to digital platforms does not bode well for posterity’s sake. We’re already the United States of Venezuela; a Third World banana republic of the highest order, so what will it look like moving forward? “According to estimates from Statista’s Cybersecurity Outlook, the global cost of cybercrime is expected to surge in the next five years, rising from $8.44 trillion in 2022 to $23.84 trillion by 2027.“ Source
We get what we tolerate and if Americans don’t dismiss their partisan ways and infighting to rise-up in the spirit of our revolutionary roots, actually assume personal risk to begin fighting back and then begin that fight; and promptly, we’ll be tolerating much more of this as we enjoy life on the technocratic global plantation as enforced by the CCP’s brand of Marxist communism.
Enterprise fraud constructed a fake pandemic out of thin air. A corrupt and criminal politburo leveraged that fraud to steal the last two rounds of elections and worse. Enterprise fraud funded that corrupt and criminal politburo through money laundering operations in the Keystone of Corruption: Ukraine.
And none of the criminals did anything and none of the criminals can recall or remember anything.
One of these criminals killed millions and the other stole billions and they did it with absolute impunity.
Come on, America, what are we doing? How much more of this are we going to tolerate?
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