The failure of the Cryptocurrency Exchange FTX and the Advent of CBDCs

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Washington Examiner: The new CEO of FTX said the company suffered a total management failure and that the mess at the cryptocurrency company is worse than any he’s ever seen, including the historic scandal at Enron.

John Ray, who took over the company from embattled FTX founder Sam Bankman-Fried after it declared bankruptcy, revealed his shock at the situation in a filing in federal bankruptcy court. Ray has overseen some of the largest corporate failures in United States history, including the collapse of Enron.

TOM BRADY, STEPH CURRY, AND OTHER STARS FACE CLASS-ACTION SUIT ALONGSIDE FTX FOUNDER

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” Ray said.

“From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated, and potentially compromised individuals, this situation is unprecedented,” he added.

The news comes as FTX and Bankman-Fried’s spectacular fall from grace has dominated headlines in the finance and cryptocurrency spaces and has sent bitcoin spiraling downward to two-year lows as investors fret over the contagion.

The company filed for bankruptcy on Friday and announced that Bankman-Fried was stepping down from helming the failing company.

This week, an Oklahoma resident filed a class-action lawsuit against Bankman-Fried and several celebrities, such as Tom Brady, who were involved in promoting the FTX platform and taking advantage of what the lawsuit called “unsophisticated investors.”

“The deceptive and failed FTX Platform was based upon false representations and deceptive conduct,” the suit reads.

In another blow to FTX and Bankman-Fried, the House Financial Services Committee announced that it would hold a hearing in December to investigate the cryptocurrency company’s descent into bankruptcy. The committee expects to hear from the companies and people involved, including Bankman-Fried, Alameda Research, Binance, FTX, and others.

“The fall of FTX has posed tremendous harm to over one million users, many of whom were everyday people who invested their hard-earned savings into the FTX cryptocurrency exchange, only to watch it all disappear within a matter of seconds,” said Chairwoman Maxine Waters (D-CA). Read More …

Opinion: On Wednesday of this week we posted this headline from Zero Hedge:

Federal Reserve Launches Digital Dollar Initiative Days After Leading Cryptocurrency Firm Goes Under

The Federal Reserve Bank of New York began a simulated digital currency initiative on Tuesday alongside multiple major banks as the cryptocurrency sector descends into chaos (read more).

“Never Let A Good Crisis Go To Waste” said Barack Obama’s chief of staff Rahm Emmanuel.

Questions:

Is the FTX collapse and excuse for setting up the 12 week CBDC pilot program, or was the pilot program already in the works following Joe Biden’s March 9 executive order 14067 authorizing the Fed to study CBDCs and report back to the president in 6 months, which was completed in September?

Will the list of more than one million creditors, be the tip of the iceberg that will bring down several Hedge Funds and or pension plans?

Will the collapse of FTX expose corruption of top Democrat government officials who received over $36 million out of $1 billion originally promised FTX donations before the collapse?

If so, will any government official face investigation (under oath) or be forced to pay any and all money back to creditors?

Consider that this whole scandal involving untold billions happened without paper money.

Prophetic events cast a shadow before them:

We know from Revelation 13:16-17 that one day, possibly very soon, the world will go cashless. We know that a mark on the right hand or forehead will be necessary to transact business. And we know that once Antichrist and the False Prophet are in place, the Great Tribulation or last 3.5 before His coming spoken of in Matthew 24:21 will commence.

“For then there will be great tribulation, such as has not been since the beginning of the world until this time, no, nor ever shall be.” 

Thanks to VS for contributing to this post.