Ed Zitron Profile picture
Nov 13 5 tweets 2 min read
It would appear a big part of FTX’s books - another Bankman-Fried project called Serum - magically increased its supply out of nowhere to bump up the books at FTX (or perhaps Alameda’s)
More info. This is like if Bernie Madoff also printed money.
Unless I am missing something, the balance sheet at FTX that the Financial Times published, SBF was propping up the books with $2bn of a token with a market cap (the total value of all circulating tokens) of $79m. What’s going on in Tortola?
ft.com/content/0c2a55… ImageImageImage
Correction to previous tweet: market cap is $119m. Which still means be could not have sold even 2% of what he had without ripping the market in two Image
This information i believe was used in a deck to try and get a bailout for billions of dollars. Even to the end Sam Bankman-Fried was Mr. Villain. Nasty!

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More from @edzitron

Nov 15
I have some thoughts:
1. gigantic levels of embarrassment that are, somehow, not leading to contrition.
2. he was an inoffensive guy who everyone liked.
3. Admitting SBF was/is corrupt calls into question any other crypto person that anyone writing about him wrote about too
There is a definite thing here of how women have to dress a particular way and act a particular way to even get consideration for like a 10th of what SBF got by saying "I'm going to turn your million dollars into a billion dollars" while playing Candy Crush
Despite I'd argue FTX doing significantly more damage than Theranos did *already*, and we're like 10 days in, I think the massive amounts of hype and hope for a really truly cool medical breakthrough + sexism absolutely made Theranos more ugly.
Read 4 tweets
Nov 15
Understanding crypto through the lens of post-2008 economic depression/the rising costs most young people were facing then/are facing now is critically important. Lots of these people stay in this for community + the sense that they've finally found a loophole that works for them
I saw someone tweet "I just want to be a degenerate gambler with my friends" and it broke my heart, because that's what this is. Lots of people who want a chance to thrive in a world that doesn't offer many. Leads people down a dark path. Makes them tolerant of bad stuff.
Living in Vegas, you see the excitement in people a lot when they're winning at a table. That excitement is because they believe they have finally got the advantage over a system that is built to take advantage of them. It gives them an imagined industry over reality.
Read 5 tweets
Nov 15
Today's newsletter is a big rundown of everything that's happening in crypto, as well as my general sense that something like FTX was inevitable as long as regulators and the media continued to tolerate a nakedly corrupt system built to create fanatics.
There are so many events that happened between Friday and Monday that I had to list them one after another. It was probably one of the funniest and weirdest things to witness in realtime - a fake billionaire's website being ransacked by posters.
ez.substack.com/p/the-sky-is-f… ImageImage
Sam Bankman-Fried used FTX customers' assets as a piggy bank to take out loans to make himself richer on paper. While we are all surprised at the scale of SBF's fraud, it shouldn't be surprising - this was always, always going to happen.
ez.substack.com/p/the-sky-is-f… ImageImage
Read 13 tweets
Nov 14
should i save my 3000 word piece for tomorrow or shove it out today. i am erring on the side of tomorrow
it's going out tomorrow, I do not think this is an end of day read
This drops tomorrow, it's edited, nobody is gonna read this much but if they do they receive 40,000 smile points Image
Read 4 tweets
Nov 13
If you would like to go to the raiders colts game please dm me and I will send you my tickets. The only thing I ask in exchange is that when you arrive at the seats you say “the smiling man has given us his bounty”. This is a serious request I cannot go to the game. They’re club
Please take these tickets. I do not want money. I want a picture of you giving the thumbs up
This is the second time I’ve tried to give away raiders tickets, and they’re good ones too. Well the tickets are. The team is absolutely awful
Read 4 tweets
Nov 13
Crypto.com might face a crisis of confidence with the crypto industry because of the whole “I accidentally sent $400m to the wrong person but don’t worry I got most of it back.” At the very least a test of withdrawals.
Everything I am reading is suggesting the entire crypto exchange industry is going to face a liquidity test. There is a lot of sentiment about “not your keys not your crypto” - meaning people will want to personally keep their crypto rather than use exchanges.
If this happens at scale - it is hard to judge entirely based on vibes - it will effectively be removing money from the market as crypto on cold storage is basically putting your cash in a box and burying that box in the ground. It is not just liquidity lost, but volume.
Read 4 tweets

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