Posts

Justin Savior Sun // The fall of FTX

avatar of @lordbutterfly
25
Lordbutterfly
@lordbutterfly
·
0 views
·
2 min read

Its really hard to write this post seeing his face on the right side of the screen in the preview section on Peakd.
Nowadays it seems that no fuckery goes by without Justin being involved in some way.
Some of you may have heard about Justins involvement in the FTX tragedy but might not know what hes doing exactly.

The situation right now.

  1. "All" deposits and withdrawals are locked on FTX except for TRX.
  2. FTX does not have its users tokens to cover withdrawals but is getting TRX from Justin.

What Justin is doing is injecting TRX into FTX and Bankman is allowing TRX to be the only token that can be withdrawn out of FTX.
Because of that TRX on FTX is trading at 6x the external price.

Apparently Justin Sun made a deal with Sam Bankman-Fried behind the scenes, possibly for a stake in FTX if it survives. A great deal for Sam but a horrible deal for FTX users.
What this essentially means for the users is that they are using their "on the books" FTX funds to purchase TRX at 6 times the market price. Just to save something they take a massive loss.

For $100 dollars they had on FTX what they receive on the open market is approx. $18 dollars right now.

When I say its a great deal for Sam, it is. If we put aside the questionable legality of the situation. What Sam thinks hes doing with this is basically getting rid of FTX customers, getting them off his books for a fraction of the money he owes them thinking that when lawsuits start coming in, these guys wont be able to sue as he provided the service he was supposed to and doesnt owe them anything. Justin will present this as if hes actually helping FTX users while it very much seems hes just saving Sam for an undisclosed deal.

A fun sidestory:

It seems some whales actually bribed FTX employees to KYC them and allow for their withdrawals while no one else could. Apparently one guy even advertised in Telegram that they can take out funds and have been purchasing tokens for 10 cents on a dollar from regular users. They even bragged about it on Twitter.

The guy offering to buy FTX balances in the second screenshot is apparently Algods partner. I cant confirm 100% this is true but those screenshots seem to be real.
Scummy people doing scummy shit and taking advantage of a horrible situation for regular people isnt anything new.

Guys... Please dont keep your funds on CEXes. CEXes are the cancer of the crypto industry.