Why the Investing Pros Were Such Suckers for FTX

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Sam Bankman-Fried may be at the center of what went wrong at FTX, but he didn't act alone. The investors who gave him hundreds of millions of dollars are partly to blame, says jasonzweigwsj.

With billions of dollars at stake, lots of smart people turned a blind eye to the crypto company’s red flags

Cryptocurrency exchange FTX was seen as a survivor in a struggling industry, but over the course of six days the exchange collapsed due to a sudden liquidity crunch. WSJ explains the factors that drove FTX’s growth and what led to its downfall. Illustration: Alexandra LarkinIn the spectacular collapse of FTX, the cryptocurrency exchange, millions of fingers already seem to be pointing at

, the frizzy-haired boy wonder who founded the firm, drove it to a valuation of $32 billion and then took it into bankruptcy.Nov. 11, the day FTX filed for bankruptcy protection and appointed a new CEO, John J. Ray III.

 

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jasonzweigwsj The SBF quote about the usefulness of models for valuation is actually quite good

jasonzweigwsj this

jasonzweigwsj Our brilliant elite financier class 🙄

jasonzweigwsj The vc crowd gave him a lot of gasoline and clout to amplify this debacle

jasonzweigwsj It's because crypto doesn't exist and the Pros don't understand why people buy it. Their greed gets in the way.

jasonzweigwsj Weird seams like giving millions to the DNC and Clinton's keeps happening yet no one is talking about it.

jasonzweigwsj duh.

jasonzweigwsj The WSJ should do an article explaining why people willingly fall for grifters, bunko artists and snake oil salesmen.

jasonzweigwsj Investors, like Uncle Sam and Zelensky’s regime to funnel the money through to FTX, then back to the US traitors who sent the money to be laundered back to themselves.

jasonzweigwsj WSJ, you guys really need to up your game, this goes way deeper than investors.

jasonzweigwsj Frank Gruttadauria II

jasonzweigwsj Marty Frankel II

jasonzweigwsj Say what? CNBC has been pushing crypto for years now.....grayscale bitcoin was most of their ads for 3 years.

jasonzweigwsj Liz Holmes II

jasonzweigwsj Yeah blame the investors the biggest headline is that he was the second biggest donor to the democrat party

jasonzweigwsj Barry Minkow II

jasonzweigwsj I explained this on Sunday, people were tricked

jasonzweigwsj

jasonzweigwsj 😳🫣🙄

jasonzweigwsj FTX lawsuit needs to include Regulators. despite the risk profile, open criticism of the exposure, warnings. No action. crypto as a whole holds $1Tr. exposure and needs focus by Congress as well as Regulators.

jasonzweigwsj The big question is how many knew, but just thought they could get out or IPO before the music stopped. They had hitched to a crazy hype machine - they just got their timing wrong and it stopped earlier than they expected.

jasonzweigwsj Same way Madoff pulled it off, no due diligence And at the heart of it all is bitcoin, which the IRS taxes, but doesn’t accept as a form of payment

jasonzweigwsj So are regulators! Globally.

jasonzweigwsj But media outlets who provided fawning uncritical promotional vehicles designed to attract investors are innocent.

jasonzweigwsj Interesting. Every fraudster and thief can be excused by this way of thinking. We are obliterating logic.

jasonzweigwsj Democrats connect needs to be investigated.

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