"This Is Unprecedented": Enron Liquidator
Overseeing FTX Bankruptcy Speechless:
"I Have Never Seen Anything Like This"
Zero Hedge,
by
Tyler Durden
Original Article
Posted By: Hazymac,
11/18/2022 9:58:56 AM
A few days ago we asked how much longer do we have to wait for the "first-day affidavit" in the FTX bankruptcy, traditionally the most detailed and comprehensive summary of how any given company collapsed into Chapter 11 (and in FTX's case, Chapter 7 soon, as this will soon become a full-blown liquidation)... (Snip) ... and this morning we finally got our answer when it hit the docket (22-11068, U.S. Bankruptcy Court for the District of Delaware), almost a full week after FTX filed on Nov 11... and boy is it a doozy.
Because how else would one describe it when FTX's new CEO and liquidator, John Ray III,
Reply 1 - Posted by:
PChristopher 11/18/2022 10:03:23 AM (No. 1336670)
He'll be conspicuously disappeared if the past is any indication.
12 people like this.
Reply 2 - Posted by:
MickTurn 11/18/2022 10:22:14 AM (No. 1336692)
The inevitable story of Leftist Management of Anything!
15 people like this.
Reply 3 - Posted by:
Hermoine 11/18/2022 10:22:36 AM (No. 1336695)
Tried to read all of this, but it's too complicated. What I do want to know is, (a) were they actually making any money for investors, i.e., did anyone see tangible returns by investing with them or was it all just on paper and they thought they were making money? and (b) who really financed this scam from the beginning...no way did this doofus get VC money b/c he was smart and charismatic. I've seen him speak and he has ZERO charisma and always looks nervous. Seems like was set up by someone much smarter than him for a specific purpose and then folded when no longer needed.
16 people like this.
Second only to Soros in Dem contributions for 2022.
11 people like this.
Reply 5 - Posted by:
sterling431 11/18/2022 10:30:31 AM (No. 1336710)
This will likely quietly just go away as it is embarrassing to too many people in the financial community who lauded this crook and who should have known better.
12 people like this.
Reply 6 - Posted by:
Mcscow sailor 11/18/2022 10:46:49 AM (No. 1336732)
If political organizations had integrity, they would return stolen monies described as donations
13 people like this.
Reply 7 - Posted by:
Highlander 11/18/2022 10:49:26 AM (No. 1336735)
FTX was run by kids running unchecked in a digital candy store!
11 people like this.
Reply 8 - Posted by:
jimincalif 11/18/2022 10:49:42 AM (No. 1336736)
SBF seems to have missed his calling. With his talent for fraud and deception, he could have had a long, lucrative career in government “service”.
12 people like this.
Reply 9 - Posted by:
Dodge Boy 11/18/2022 10:51:12 AM (No. 1336739)
If SBF was smart, and assuming his passport wasn't immediately revoked, he would have fled the country just before tendering his resignation and has since changed his identity and his face. If found, he won't live long. At best, he will get the Bernie Madoff treatment. Perhaps he should get a hold of Eric Snowden in russkie land for some advice how to survive in a foreign land.
Well, House pubbies, here's another juicy investigation that you can sink your teeth into since a good many of your fellow dims participated in FTX - good old insider trading and wire fraud at its bet.
11 people like this.
Reply 10 - Posted by:
wilarrbie 11/18/2022 11:01:03 AM (No. 1336750)
So this guy is spraying other peoples' $$$s around like an unmanned fire-hose but the DOJ pitbull is lockjawed on Trump because he has mementoes and newspaper clippings at Mar-a-lago?
19 people like this.
Reply 11 - Posted by:
NorthernDog 11/18/2022 11:29:04 AM (No. 1336787)
Bankman-Fried was giving money to ''all the right causes'', along with liberal Democrats and wayward Republicans. That's all it took for everyone to look the other way. They need to claw-back the political donations. It'll be fun to watch Mad Max-Maxine screech and hollar.
10 people like this.
Reply 12 - Posted by:
Hazymac 11/18/2022 11:52:12 AM (No. 1336815)
This convoluted story of massive financial crime is, as #3 says, hard to understand. The anfractuous nature of the criminal mind is difficult for honest persons to grasp. YrHmblSrvnt here was, before retirement, a General Securities Registered Representative (Series 7 and 63), and I had a hard time grokking anything but obvious criminal intent from the outset by SBF and related criminals, all of whom should, after conviction, get the same treatment as Bernie Madoff. Put the freak away. Throw away the key. And his little dog, too.
11 people like this.
Reply 13 - Posted by:
bassman 11/18/2022 11:55:45 AM (No. 1336818)
oh boy, now they are using this as an excuse for needing digital currency. More control over our lives!!
8 people like this.
Reply 14 - Posted by:
stablemoney 11/18/2022 12:06:06 PM (No. 1336823)
I worked on the Enron bankruptcy for 3 years, so am familiar with the processes FTX is about to go through, including working with the CEO that is doing the FTX bankruptcy. One of the jaw droppers for anyone with AR and AP with FTX will be that they have to pay the AP, but will get nothing for their AR, netouts not being allowed. FTX will collect their AR for 2 years, before addressing claims. FTX was a scam from the start. Prager Metis, the FTX CPA firm that issued their audited financial statements, may not survive. It has been reported that FTX had no internal accounting department. No one has reported who did their monthly accounting.
8 people like this.
Reply 15 - Posted by:
greyseal 11/18/2022 12:16:15 PM (No. 1336836)
The money quote regarding SBF and his pals:
"Dear @TheJusticeDept: is $30 million in stolen donations to Dems enough to get you a lifetime get out of jail card?"
greyseal
6 people like this.
Reply 16 - Posted by:
SkeezerMcGee 11/18/2022 1:33:42 PM (No. 1336877)
SBF did start FTX with his own money. He made $ millions by arbitrage trading by purchasing Bitcoins in one country at $10,000 per coin and selling them in another country within a short time at $11,000 per coin. He did the over and over. If memory by serves he was profiting at the rate of $25,000 per day.
2 people like this.
Reply 17 - Posted by:
Heil Liberals 11/18/2022 1:49:57 PM (No. 1336889)
It is most definitely not a bug. It was THE feature of this scam. Note that the organizational chart has a huge presence in Antigua. Why do you suppose that is?
People should spend the rest of their lives in prison - no parole, but they won't.
5 people like this.
Reply 18 - Posted by:
privateer 11/18/2022 3:56:22 PM (No. 1336982)
I agree with 3, it was 'set up by someone much smarter than him for a specific purpose and then folded when no longer needed.' The specific purpose was the theft of the 2022 midterm elections. Now that that was largely successful, FTX can come crashing down. And Bankroll-Fled becomes a temporary liability. Like Seth Rich was.
5 people like this.
Reply 19 - Posted by:
clipped wings 11/18/2022 7:09:37 PM (No. 1337156)
#12, I agree, and I used to teach Series 7, Series 63 and write textbooks for those and several others.
I, too would like to know about the prominent presence of Antigua on that organization chart.
3 people like this.
Reply 20 - Posted by:
RWPollock 11/19/2022 1:27:48 AM (No. 1337318)
Those responsible must go to jail!
1 person likes this.
Reply 21 - Posted by:
JimBob 11/23/2022 12:15:23 AM (No. 1340435)
To me, this whole 'crypto' operation is pure speculation based on.....nothing... just a pattern of computer dots and dashes.
In addition, in this 'organization', I recently saw a photo of SBF (or whatever his initials are) on stage with The HornDog.
This is always a good clue to a scam being pulled, as The HornDog is attracted to loose money and loose females.
Anyone who 'invested' in this racket got what they deserved.
Crooks and Shysters, the Lot of 'em!
0 people like this.
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I hope SBF has protection. After ripping off the left fringe, he's going to need it. They will want something valuable from him, something he is trying to keep hidden. Is a car trunk in Sam's future?