FTX is likely to go down as one of the biggest embarrassments in the history of crypto. More than that, as additional layers get stripped away to reveal what happened, one can’t help but put a few pieces of the puzzle together and be horrified by the final image.
Was the FTX Collapse Part of Something Bigger?
This may sound like something of a conspiracy theory, yet when one really considers everything and puts multiple ideas in place, one can find a thread of common sense. Consider the following:
Crypto was built to keep all government regulators, third parties, and financial middlemen out. Those who used crypto were supposed to enjoy autonomy and independence with their money. They would not see their funds dabbled with by institutions, nor would these players have any say in what users did with their funds. The choices were theirs and theirs alone.
Enter FTX. Within three years, it becomes the golden child of the digital currency arena. Its founder Sam Bankman-Fried is lauded as a genius, and it rises to the top of the exchange ladder, becoming one of the biggest and most popular digital currency trading platforms around. Then, by the end of 2022, it all comes crashing down, sending negative ripples throughout the space and eliminating companies like Block Fi from the playing field.
This is where things get tricky. Over the past several weeks, political figures like Joe Biden and Treasury Secretary Janet Yellen have cited FTX as the reason why crypto regulation needs to take precedence in Washington. They’re allegedly concerned about customer safety, and they don’t want anything like this to happen again. Thus, government monitoring of the space may be the best solution.
This would all be fine except for one thing… Many politicians and government players have accepted money from FTX and Sam Bankman-Fried. These politicians were elected to office by people who believed they understood national law. Are we really expected to assume they didn’t see any sort of corruption or negativity occurring with the exchange when they were so directly connected to it? SBF said he gave money to both democrats and republicans, meaning both sides of the political spectrum had exposure to the company’s dealings and operations, and nobody saw anything unusual?
It’s possible the close relationship between FTX and Washington’s elite exposed something it wasn’t supposed to, and it’s plausible to assume that at least some government players knew what was going on and chose to ignore it.
Your Autonomy Goes Out the Window
Why? Well, if FTX – a major crypto exchange – crashes and burns, Washington now has the ultimate excuse to completely step in, take over, and regulate the space like the standard financial system, thus eliminating your freedoms entirely. What was built as an uncontrollable space will now be completely controlled by the very people who helped ruin it.
Was the FTX collapse really the result of bad accounting procedures like we’ve been told? Or was this whole thing part of a larger, more sinister plan?