Another financial shenanigans that resulted in a classic bank run (which fortunately spared most of us)

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https://www.wsj.com/articles/ftx-tapped-into-customer-accounts-to-fund-risky-bets-setting-up-its-downfall-11668093732?mod=hp_lead_pos5

More background on FTX:

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Can’t play in an area I don’t understand.

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Bernie M. + Monopoly money = FTX

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Misuse of customer funds is the gist of it.

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I’m wondering if the CEO will be charged, this is criminal, it’s against his TOS even.

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I’m almost certain that he will be. He’s also a big donor to politicians (even bragged that he might donate up to $1b in '24).

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Yeah, one of the jokes is “A Forbes 30 under 30, will get 30.”

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Yes, likely. I don’t think he has enough money and political clout to get away with this.

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CNBC frequently mentioned another Theranos this morning. MIT and Stanford graduates, let’s bring back the admission officers who admitted them, maybe throw eggs at them, how could they be so wrong.

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I almost chocked on my morning coffee when they made that comparison. Seriously? EH was endangering people’s LIVES! This is just funny money. That said, no one is above the law, and the bro needs to learn a few lessons. Some greedy venture capitalists do not seem to learn though.

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You have to be brilliant to get people to give you billions.

The parents of this dude are both Stanford Law professors.

Not that they did this but -

I’m sure he was growing so quickly in power that he took chances to keep growth and the bubble burst.

I bet we hear from him again - in a legal sense (law suits) but certainly new businesses.

He started the right way…but at 30 it’s hard to keep the ego in check.

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Sadly, these kind of financial scams and scandals happen so often. Even those firms that should know better, pile on. After all, who doesn’t want easy money? It’s all good until the music stops and the party is over. Then the little guys go to jail and the big guys go to the government (for handouts).

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I’m positive this is not the last large scale financial pyramid scheme we’ve seen in our lifetimes.

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FTX CEO Sam Bankman-Fried has reportedly escaped to Argentina on his private jet.

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I found no information online that he had escaped, but this link is claiming it’s worser than Theranos and Bernie M.

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It is a financial rag known for its sensationalistic headlines.

While Theranos’ financial fallout was relatively small in $$, under a billion, one simply cannot put a $$ value on human lives.

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Reuters reports that he said “Nope”’ in response to the inquiries if he fled to Argentina.

https://www.reuters.com/technology/ftx-founder-bankman-fried-says-he-is-bahamas-2022-11-12/

Someone tracked a private jet that indeed flew from the Bahamas to Argentina last night, but apparently they couldn’t find any connections between the crook and this jet.

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Elizabeth Holmes is requesting 18 months of house arrest, she’s claimed she’s been vilified enough, lol.

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Does she not understand that being mocked and vilified are not considered as part of sentencing guidelines?

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These people are very smart, don’t forgot they were admitted to Stanford. They will try every which way they can. She even got a young guy from MIT to believe her story, and now I read his dad is also in that camp.