Was It All Just A Bunch Of Incompetence

It would seem from SBFs latest interview that he's firmly standing behind nothing criminal was done and instead it was all just a bunch of 20IQ Incompetence. I mean to be honest when you look at some of the interviews he did and his gf at the time it makes you really question why anyone would trust their money with these people.

But that's the power of money and non vetted influencers. To be fair many influencers really do do their best to promote only companies they believe in and trust. But there are others that only care about the biggest ticket price and it was clear SBF forked out heavy money to a bunch of places including the united states government.

If it really did come down to just a bunch of bad investors and incompetence well that's a harder hit then ever to decentralization and crypto in general. The thing is in a free for all world of decentralization only about 5% of the world researches and looks into this. Others simply go off of hype, emotion, feelings and what their favorite influencer tells them. These people for some reason think the governments always going to have their back and that their money is always safe no matter what they do with it and if things go real bad the government will pay them back. And to be fair that's pretty much the stance the government has been taking in terms of making people more and more reliant on them while slowly stripping their freedoms away from them.

The other 5% see this happening and crypto was one of the last places to restore those freedoms and take back some of the power lost to governments over the years. It's exactly why bitcoin was created in the first place.

Flashy Always Beats Boring

The sad truth of the root of all of these issues is people trying to be "creative" and generate more revenue from a system that already pays out high dividends. For example with hive I can make about 11% APR on my Hive and 20% APR on my HBD right now. I could create a system in which others send me their funds via a delegation and I return say 7% to them while I keep 2%+ for myself as say a service fee for time involved. That would be totally legitimate and run no real risk because I could continue to pay that out while making a profit. It doesn't try to beat the 11% APR instead it under cuts it a bit and leaves some on the table.

That's why if you see ANY platform offering a higher APR then the normal inflation of the token then they are doing other things that put your funds at risk. If these places simply offered up boring 3% APR on Polygon and kept 1%+ themselves there would be zero issue and things would run just fine and dandy.

Legal

I by no means know all the legals in this but it seems like SBF is still free to move around and do as he pleases which clearly means no real criminal charges have been filed that can be held against him. This is now 3 weeks after FTX filed for bankruptcy.

Are there crimes? Sure there are but it's going to take a while to uncover them and sort out the whole mess. Depending also on all the fine print you agree to when you joined FTX is also going to state if anything criminal was conducted. You know that fine print no one reads but always agrees to often has hidden little gems the protect CEOs and companies.

What we do see however are some clear areas that could be looked into such as.

Huge personal loans that were paid out to executives in the company although let's be honest that's not uncommon look at your big player CEOs and the huge amount of funds they have. Another big one was apparently yet another slip up from the USA government in which Alameda Research actully acquired a bank without any clearance and regulatory hurdles. That bank was Farmington State Bank Community bank.

The FTT token itself could be a security that was not registered but used heavily by Alamedas collateralized loans.

What all of this comes down to is one thing. There is NOTHING wrong with crypto and EVERYTHING wrong with a few greedy, incompetent's and down right bad actors. If everyone just used their own wallets, delegations and controlled their assets instead of chasing wild APR dreams thing wouldn't have happened in the first place and is sadly why these arms of crypto will end up getting regulation because simply put 95% of the worlds population is dumb AF when it comes to their investments and finances.

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