THE CONTINUED UNRAVELLING OF FTX NOW ENGULFS GENESIS

Just this last Monday I blogged about a story shared by L.G.L.R. concerning the collapse of the FTX crypto-"currency". In that blog I pointed out the problems mentioned by the current acting CEO of FTX, that the company apparently kept virtually no records; it was, as he put it, a "paperless bankruptcy". As I pointed out, I thought this to be a tremendously problematic admission. After all, the whole point of crypto-"currencies" is supposedly their relative "unhackability:, and the relatively "secure" nature of the blockchain technology and its "distributed ledger" &c &c. Wasn't the whole point to be paperless yet to have some records? And now the records are gone?

So as I put it in my Monday blog, it seems that FTX either kept no records  at all, and merely used the idea of crypto-"currencies" but used none of its standard features, or somehow even its cyber-records disappeared, which would seem to require some very high and knowledgeable players to make that possible. On top of all of this, these revelations occurred in an article alleging that FTX was hacked to the tune of $477,000,000. Where did that knowledge come from? Who had a record of that, and what kind of record was it, digital? or actual hard copy?

Well, now you can add more to the story, according to this article shared  by V.T.:

Crypto giant Genesis is 'days away' from bankruptcy after suffering steep losses in wake of FTX collapse: Firm owes creditors $3 BILLION - including $900M to Winklevoss twins

There's an unpleasant fish-market odor hanging over this story too. Ponder this for a moment:

Popular cryptocurrency broker Genesis is expected to file for bankruptcy within days, insiders have revealed.

It would make the firm the latest crypto casualty following the spectacular downfall of Sam Bankman-Fried’s FTX, where the company held some of its funds.

According to people familiar with the matter, Genesis is currently in the final stage of its Chapter 11 paperwork as it works toward a deal with creditors.

The company, which is owned by venture capital firm Digital Currency Group, had been considering filing for bankruptcy for some time, as it reportedly owes creditors more than $3billion.

Among those owed money is Gemini, owned by Cameron and Tyler Winklevoss, which reportedly saw more than $900million of its customers' funds evaporate from the exchange after Bankman-Fried's own Chapter 11 filing in November.

Cameron and his brother's exchange used Genesis as its main lending partner, leaving the brothers - and millions of their customers - in the red as a result.

Lenders like Genesis, founded by crypto magnate Barry Silbert, suffered steep losses from loans it supplied FTX's now-defunct trading firm Alameda Research and its hedge fund backer Three Arrows Capital, both of which filed for bankruptcy.

A new report published Wednesday by Bloomberg revealed that as figures such as Winklevosses seek to recover sums lent to Genesis, the New York based-lender has resigned that it cannot raise the funds to pay back its creditors.

The article goes on from there to detail the dealings between Genesis and other crypto-"currency" asset management and investment firms, which, while intriguing for the vast sums of money involved, are beyond the scope of what grabbed my attention about the above statements in the context of my blog on Monday, for again, the philosophical question raised b y FTX's poor record-keeping is raised here, but in a much more subtle way:

If FTX kept such bad records, how do we know how much Genesis "loaned" to FTX?  The answer is simple: because Genesis kept records, and these records now represent a claim on FTX.  But who is to say those records are accurate  and, so to speak, "unhacked"? In the alleged absence of records on the part of FTX, what is to prevent claims simply being invented and, for that matter, the loans themselves from being "hacked" and erased or, absent that, "adjusted"?

In short, we appear to be looking at a situation in which so many firms and "crypto-'currencies'" are so interlocked and interconnected, and with records of at least a  suspicious and dubious nature, that the complexity of the interlock may dwarf even the bankruptcy of I.G. Farben (which, let us recall, only finally and formally ended in 2003!) Is the interlock so pervasive and extensive that what we're looking at is not only a massive money-laundering operation but also a massive theft and asset seizure operation?  If FTX just the tip of the iceberg and the cusp of a story that is only just beginning?

I suspect that that is indeed the case.

And this, let us remember, is the system Mr. Globalooney and his central banks want us to embrace with their central bank digital currencies?

Sorry, guys, but I'm not impressed.

See you on the flip side...

Joseph P. Farrell

Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and "strange stuff". His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into "alternative history and science".

No Comments

  1. RBG Santa Monica on January 26, 2023 at 11:59 pm

    Speaking of I.G. Farben, I wonder if Pfizer is somehow a legacy of that illustrious corporation. I’ll bet if push comes to shove, it could take 60 years to fully dissolve the Pfizer corporation into oblivion, considering how much of the leadership class it has usurped.

  2. gord on January 26, 2023 at 7:09 am

    Manufacture a demand for more regulations in a way that tends to eliminate all but one or two fake competitors (different pocket, same pants). Who would ever think of it?

  3. FiatLux on January 26, 2023 at 6:30 am

    My high-octane speculation: I wouldn’t be surprised if a substantial percentage of the creditors (major private equity firms, for example) knew from the beginning that the money they were putting into FTX was going to “disappear” — and get funneled to certain politicians and other parties. That would be a pretty convenient way of masking a big political contribution, kickback, or bribe, wouldn’t it? All while getting some extra funding from whatever percentage of the creditors were actual dupes and not in on the scam.

    The FTX debacle certainly reveals that crypto-“currency” is no more to be trusted than anything else digital or, for that matter, anything else that can be manipulated by bankster-intel cabals. However, I fear the central-bank-digital-“currency” (CBDC) pushers will use FTX and its fallout as a major argument in favor of CBDCs. “Look at all the damage these unregulated, untrustworthy cryptocurrencies have caused. We must replace them with a regulated digital currency, backed by the full faith and credit of your friendly, neighborhood central bank.” If FTX creates enough actual or apparent mayhem, a lot of fools could swallow that line.

  4. marcos toledo on January 25, 2023 at 7:33 pm

    HA, CRYPTO-CURRENCIES are the things nightmares are made of.

  5. Richard on January 25, 2023 at 4:00 pm

    It would seem that as the clepto-beast feasts on crypto, it now is eyeing digital. Quick to gain, quick to lose. [Speed] of the transactions is paramount..

  6. Robert Barricklow on January 25, 2023 at 11:36 am

    Just getting an idea of generational warfare.
    Don’t know where “they” are on that future scale.
    Some say were in WW111, but what kind of warfare?
    Is it a combination of 1st, 2nd, 3rd, 4th, 5th, 6th, 7th generational warfare?
    And somewhere in that vortex warfare mix FTX;
    getting washed and dried in the public & private eye[s].
    Then you think of the DOD stealing trillions; for fighting extraterrestrials?
    A lot of crazy foxes are getting into the FIRE sector biz?
    [finance, insurance, real estate[weaponized warfare].
    Plus, all those players: the Good, the Bad, and the Ugly.

    It’s getting late…
    White Rabbit

    The above is the frame…
    from which I’ll read today’s blog…

    Looks that those old boys from Venice
    are back in business!
    Now, they can keep invisible books.

    It’s looking like a financial video game of Whack-A-Mole!
    Or, is this war.
    Or, just another day in Bizarro World?

  7. ragiza on January 25, 2023 at 10:07 am

    “They” made 140 tons of Libyan gold disappear – a few spreadsheets is no problem.
    And if the “twins” squawk too much, maybe they’ll disappear.

  8. Galaxygirl on January 25, 2023 at 5:36 am

    What if the point of the bankruptcies is to make big business broke and unable to fight back?

Leave a Comment

You must be logged in to post a comment.

Help the Community Grow

Please understand a donation is a gift and does not confer membership or license to audiobooks. To become a paid member, visit member registration.

Upcoming Events