Sam Bankman-Fried.

FTX Wallets Just Got Emptied

Whoever was emptying the wallets at the bankrupt crypto exchange was taking everything. 

Recipient wallet here: https://t.co/gHaDOXBCOC

They seem to be moving everything pic.twitter.com/lFDgNgqukF

— foobar (@0xfoobar) November 12, 2022

somebody sent an onchain message to the recipient account with 4byte selector `0x3d24a1ff`, which is the hash of function name "Rug Pull All"

great stuff pic.twitter.com/3w3rOaRTAJ

— foobar (@0xfoobar) November 12, 2022

Love my followers, this site is worth $8 pic.twitter.com/GGGDSjXXjc

— foobar (@0xfoobar) November 12, 2022

Thousands of Wormhole ETH is getting bridged from Solana into the Ethereum wallet now pic.twitter.com/01KpKVAUGr

— foobar (@0xfoobar) November 12, 2022

FTX's general counsel Ryne Miller didn't know why the money was moving...

General counsel @_Ryne_Miller says he doesn't know why the funds are moving. If part of a liquidation order, he would definitely be clued in. Must be malicious, the question is then whether it's an inside or outside job. Not great pic.twitter.com/QsgKnwYlH6

— foobar (@0xfoobar) November 12, 2022

FTX just pinned this message in their main telegram chat pic.twitter.com/8uCl4wJtvT

— foobar (@0xfoobar) November 12, 2022

Fun fact: FTX appointed the Enron liquidator as the CEO replacement for SBF

Another fun fact: "built by traders, for traders" was the tagline for both companies pic.twitter.com/MeIYLcjwk9

— foobar (@0xfoobar) November 12, 2022

And FTX founder Sam Bankman-Fried claimed to not know the funds were moving at all...

Don't worry, sam has the whole thing under control pic.twitter.com/K1ea3iMryo

— foobar (@0xfoobar) November 12, 2022

Why This Might Be An Inside Job

Some of the wallets are labeled "fucksbf" and "fuckftxandsbf.eth" -- this could be a reverse optics to appear as if it is a hack. Anything is possible. pic.twitter.com/b9Qa9Cw3dH

— Autism Capital 🧩 (@AutismCapital) November 12, 2022

A possible scenario shared with ushttps://t.co/UsGHa3eTrs

— Autism Capital 🧩 (@AutismCapital) November 12, 2022

Statement from Ryne Miller (FTX General Counsel)
h/t @mattdorta https://t.co/j1mn3ITg62

— Autism Capital 🧩 (@AutismCapital) November 12, 2022

Could this be the getaway plane?

Private jet flying out of the Bahamas with unknown destination pic.twitter.com/w2KvvPbMJR

— parsa.eth 🌉 (@Parsa2400) November 12, 2022

Time will tell.

As it turns out, both of Sam Bankman-Fried's parents are law professors. Knowing good lawyers may come in handy for him.

How'd he elevate to such a position so quickly? Let's look at his parents

His dad has written about & made a career off of getting rid of the "cash economy" and helping the govt find tax evasion (odd that his son his the biggest name in crypto)

His mom is a major dem operative pic.twitter.com/fecThs94zx

— GencoCapital.eth (@gencostocks) November 11, 2022

In any case, this seems like terrible news for the whole crypto complex. In my previous post ("Fading The Post-CPI Rally"), I mentioned buying puts on the bitcoin miner Riot Blockchain, Inc. (RIOT). I wouldn't want to be long any name associated with crypto on Monday. 

Saturday Evening Update

A good summary of the FTX saga prior to Friday night's brazen theft: 

What happened at FTX is straight-forward. FTX lent US$10bn of client funds to their trading arm Alameda, which used it for leveraged crypto speculation. Alameda blew up in crypto meltdown & can't repay. Ppl got whiff of this & tried to pull US$5bn from FTX. FTX didn't have it.

— Lyall Taylor (@LT3000Lyall) November 11, 2022

Our correspondent Anatoly Karlin, who predicted the Russian invasion of Ukraine and, before that, the COVID crash, predicted FTX's downfall too. 

Alameda gambled on shitcoins is underwater and will pop like Celsius when BTC goes below $15k.

FTX goes under.

Interpol arrest warrant for SBF and numerous other crypto crooks.

— Anatoly Karlin 🐘 (@powerfultakes) August 24, 2022