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May 2 11 tweets 5 min read Twitter logo Read on Twitter
#FTXUS shareholder analysis thread part 2
Yesterday I punched out a bunch of tweets re: the ownership of FTXUS aka #wrssilo I'm still working through the filings. I'm just going to post as and when I've got time....its going to be untidy but you know ...thats the I roll.
One thing I've scratched my head about is how did the FTX muppets end up with the shares in WRS directly in their name....since its the US operations of #FTX?
I haven't worked out why but I think I've worked out how.
Kroll scratched out a timeline and note that SBF, Gary and Nishad founded WRS (FTX US) in Jan 2020.
Not as a subsidiary...not as a branch office, majority owned/controlled entity...nope just straight up new shares to the Bro's. Image
and at bankruptcy the #FTXUS Bros ownership of WRS #SBF 52.99%, Wangster 16.93% and babyface Singh 7.83% with 'third party investors' holding 22.25% Image
So how did they get their equity...what cash did they invest and why didn't #FTX own a shit ton of #FTXUS since well they are piggybacking off the ahem brand, infrastructure, intellectual property etc.
Well that's what I've been scratching my head trying to understand.
Trying to piece things together from the documents is pretty slow and it wasn't until I read through the incomplete and heavily redacted list of contracts that I could see one pathway they might have used (a shit one of course).
On 12 Jan 2021 all three #FTXUS Bros executed the same docs - technology assignment, stock purchase agreement (don't know why only the wangster was listed with an investors rights agreement). Image
It looks (on face value) that the Bros founded #FTXUS by 'vending' their IP (individually or collectively who the fk knows). lol No one is crypto gives a shit about tax deliberately structure to be as tax inefficient as possible. #MuppetsMayhem
With #danfriedberg as their legal eagle...who could expect anything better
Ironically since the date of the DF's contract is well before incorp I'm guessing the contract is in fact an FTX contract. Image
Stay tuned for part 3

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More from @intel_jakal

May 3
#FTXUS Analysis - Thread 3
Following on from yesterday. Todays thread will focus on payments to #insiders made in the last 12 months prior to bankruptcy. Every time I look through the docs...I'm just amazed how spellbindly outrageous this whole shit show is.
In 12 months just over $25m was paid to insiders. I've summarised by quarter. 48% of payments went to undisclosed parties but since they are insiders and SBF only clipped a lazy $500k in his name...lets assume its him. Image
The stand out insider is the former CFTC commissioner #markwetjen who was paid $3.7million Image
Read 10 tweets
May 1
@Annihil4tionGod it is. appears Series A Prefs subscribers also received Class A common when you sort the holdings you can see that the ratio c. 11:1 (common : Prefs). not all the names align as it appears that some subscribers nominated different entities...plus there's a tonne redacted Image
@Annihil4tionGod Taking a step back. So the capitalisation of FTSUS at liquidation was;
We know there was $400m raised this indicatively ties in with the 1.6B Class A common why the ratio to the Series A pref is 11:1 I have no idea. Image
@Annihil4tionGod There are a number of FTX employees that are holders of Class A Common shares but do not hold Series A prefs. I had to shuffle around the numbers a bit to work out why. Image
Read 10 tweets
Apr 21
An #incompentence #MasterClass
by #bitfinex own statement it was working with #cryptocapital from 2014.

#bitfinex was also working with #coinapult we know this as they are referenced in the incident report when #coinapult was hacked in 2015. Image
So what happened with #coinapult. That's a great question...I'm glad you asked. In May 2015 (a couple months after the hack) they announced they were being 'integrated' into #cryptocapital and would no long be undertaking #kyc as they had a tip top fully regulated partner, Image
Obviously to effect such an important transaction #coinapult would have gone to great length to ensure their partner who was taking over the KYC and banking functions were who they said they were.
Read 6 tweets
Apr 19
On 12 April. I asked a pretty basic question 9over and over and over)...where did #elsalvador get the $800m to make the bond repayment in January....nothing but crickets (as always) Image
So I thought I'd go and have a look at El Salvador's finances....I'm working through the IMF's 2021 article IV consultation report Image
Why am I going through the 2021 report and not the current one......thanks for asking that's a very good question....pretty simple answer its because #elsalvador has yet to provide authorisation for its release.
Read 9 tweets
Apr 18
@threadreaderapp So I thought I'd add a couple of extra tweets to my thread re: the fake bank #bandenia. Last week I banged on about about some pretty easy to spot fudging of financials. Most scammers battle to read financial statements so they are not particularly good at fudging. Image
@threadreaderapp More problematic than the scammers crappy accounting is that mostly no one bothers to spend more than 2 mins looking. (remember... #celsius....anyone?) So here's some even dumber examples of the same fraudulent attempted alchemy.
Read 18 tweets

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