Since the rapid and sudden collapse of FTX, we have learned a ton about not only the culture of the company, which itself was highly questionable but also about the once idolized leader behind it all SBF. Before I continue though this is not meant in the vein of judging anyone for the type or path of life that they wish to live but rather just highlight some very unique or counterculture way of life.
As the walls to the castle that was FTX began to crumble stories started to emerge of the company that did not paint FTX in a very good light and this included the relationships that these executives maintained with each other. Whether it is right or wrong there is a solid reason why large billion-dollar companies have policies in place to prevent or require disclosure of personal relationships within companies. Human nature can be an amazing thing but also a huge issue if the relationship fails and ill feelings are harbored which could result in very negative actions taken by different parties.
While we were processing this news we learned from the new CEO of FTX John Ray III that the internal controls and basic or common sense accounting were completely lacking in the company. This could have knocked me off my feet because you had these billionaires investing in this company but somehow did no due diligence to catch these issues! During the hearing before the House Financial Services Committee last week we heard how Quicken was used to keep track of money and as someone whose dad has used Quicken his entire life, I was bamboozled it would be like using Excel to keep track!
With this type of improper money controls, it was easy to be quick to ask where was the government, where were the regulators, and when it came to light the political and regulatory connections SBF and thus FTX had you realize how insulated he made himself and the company. Between the personal connections he had within the SEC to the political connections, he gained via his brother, holding receptions, and political contributions it exposed some really important issues people should be aware of. A little tidbit of information that has not really received the attention that I believe it should is SBF's family connection to Congress. Until the beginning of last year, SBF's younger brother worked in Congress on legislation for Representative Sean Casten. This is something many are unaware of as Rep. Casten serves on the Financial Services Committee in the House along with the Science, Space, and Technology Committee! The connections that he gained through his brother honestly are so valuable I'm not sure there is a price.
Even with these issues, I have highlighted above the biggest shock to me that made me think "what the ..." came when the news of SBF's former/current/status unknown girlfriend Caroline Ellison's previous tweets came to light about abusing stimulants. Given that the US is currently having an ADHD medication shortage that is not expected to correct anytime soon this is disturbing. When I dove into the medication and drug use/abuse that was going on at FTX I was dumbstruck when I ran across the use of a drug called EMSAM in patch form. ENSAM is also known as selegiline and while initially discovered and used to treat depression has now moved to a drug that is more often prescribed for Parkinson's disease. Not only that it is currently unknown how it works when it comes to depression and side effects can result in issues with insomnia and gut issues among others. Rumor has it that SBF used this drug as he thought it functioned as the drug NZT-48 did in the movie and TV show Limitless which "unlocked" all sorts of brain power.
With his extradition now secured and the US government flying him back to the States today, I am sure we will end up hearing a ton of new developments when it comes to this story. I think it can almost be promised that there will be much more drama and the fallout that emerges or come to light as the US court system starts to go through the trial procedures for the crimes he is facing.
During this time I will focus on doing the easy free things that help me build up my crypto holdings via stacking my sats daily. If you have not signed up for the Fold App's debit card yet and would like to earn 20,000 sats just for doing so use my referral link here! FYI if you do not use a referral link when signing up you will not receive the 20,000 sats for signing up for the debit card!
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