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FTX’s Collapse Leaves Employees Sick With Anger
The Wall Street Journal ^ | November 16, 2022 | By Alexander Osipovich, et al

Posted on 11/16/2022 8:17:06 AM PST by Oldeconomybuyer

One FTX executive vomited when he learned that the crypto exchange was missing billions of dollars of customer money. A company lawyer quit via a harsh text message to then-Chief Executive Sam Bankman-Fried. A top salesman who had bet big on FTX equity saw most of his wealth evaporate overnight.

What started as a dream job turned into a nightmare for employees of FTX. The Wall Street Journal spoke to more than a dozen current and former employees, many of whom said they were shocked by the alleged misuse of customer funds.

For its roughly 300 staffers, FTX seemed like an opportunity to reap financial rewards at one of the world’s fastest-growing cryptocurrency firms while fulfilling a sense of moral mission. Mr. Bankman-Fried pledged to give 1% of the exchange’s fee revenue to charity, and he appeared to be a paragon of ethics in an industry plagued by scams.

The implosion of FTX was financially ruinous for some employees. Outside the U.S., many staff were paid via direct deposit to their accounts on the cryptocurrency exchange, so when FTX froze customer withdrawals last week, these employees couldn’t access their funds.

It was also common for employees to hold FTX equity or get part of their pay in the exchange’s FTT tokens. Last fall, Mr. Bankman-Fried offered employees the opportunity to buy shares in FTX at a 50% discount to what venture capitalists had paid in a recent funding round. Now that equity is worthless and the price of FTT has crashed.

As FTX disintegrated last week, many of the expatriate employees said they left the island for Hong Kong or New York. Those who left earlier were able to book flights on their FTX credit cards. Those who waited longer said they found their credit cards declined.

(Excerpt) Read more at wsj.com ...


TOPICS: Business/Economy; Crime/Corruption; News/Current Events; Politics/Elections
KEYWORDS: bitcoin; crypto; cryptocurrency; democrats; ftx; sambankmanfried
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1 posted on 11/16/2022 8:17:06 AM PST by Oldeconomybuyer
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To: Oldeconomybuyer

I’m sure Madoff’s employees were upset their gravy train turned out to be a scam as well. Go learn to code.


2 posted on 11/16/2022 8:18:30 AM PST by thefactor
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To: Oldeconomybuyer

Accomplished in months what took Burney Made-Off decades...


3 posted on 11/16/2022 8:19:07 AM PST by nascarnation (Let's go Brandon!)
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To: Oldeconomybuyer

Sounds a lot like what happened at Lehman Bros.....................


4 posted on 11/16/2022 8:23:01 AM PST by Red Badger (Homeless veterans camp in the streets while illegal aliens are put up in hotels.....................)
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To: Oldeconomybuyer

5 posted on 11/16/2022 8:23:01 AM PST by cranked
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To: Oldeconomybuyer

EVERY penny should be repaid by all the Democrats who benefited from this malfeasance.


6 posted on 11/16/2022 8:23:03 AM PST by LeonardFMason
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To: Oldeconomybuyer

This guy has “friends in high places”. The FBI won’t go after him more than they have to to keep up appearences.

There will NOT be a serious investigation into the FTX-Ukraine-DNC connection.


7 posted on 11/16/2022 8:23:28 AM PST by Fido969 (45 is Superman! )
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To: nascarnation

Ponzi Scheme goes Boom

Film at 11

Wonder how long the USA debt clock ⏲️ will keep ticking?


8 posted on 11/16/2022 8:23:43 AM PST by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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Comment #9 Removed by Moderator

To: cranked

Has that been proven?


10 posted on 11/16/2022 8:25:06 AM PST by Lizavetta
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To: Lizavetta

Has it not been disproven?


11 posted on 11/16/2022 8:25:45 AM PST by cranked
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To: Lizavetta
Has that been proven?

Not only has it not been proven, its not even a serious allegation at this point.

12 posted on 11/16/2022 8:27:06 AM PST by tlozo (Better to Die on Your Feet than Live on Your Knees)
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To: Fido969

unfortunately you are probably right.


13 posted on 11/16/2022 8:29:17 AM PST by Rusty0604 (" When you can't make them see the light, make them feel the heat." -Ronald Reagan)
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To: SaveFerris

Now there is an idea.... some US republican billionaires form Crypto exchange.... offer crypto currency to foreign holders of US debt, promising double digit annual returns.... crypto for the debt notes.


14 posted on 11/16/2022 8:30:04 AM PST by kjam22
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To: thefactor

Investigations of this are appropriate, however there are multiple people in power who will squash any attempt to expose “the truth” of this mess. Let’s start with “Joe” “Team Mitch” Kevin, Nanzi, ChuckU, and the rest of the Cabal “Leadership...”


15 posted on 11/16/2022 8:31:15 AM PST by Shady (The #JihadJunta: "We are now a nation of Men, Not of Laws. You are not as equal as we are...")
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To: Oldeconomybuyer

...or get part of their pay in the exchange’s FTT tokens. Last fall, Mr. Bankman-Fried offered employees the opportunity to buy shares in FTX at a 50% discount

We’ll give you 50% off on a digital bauble that were created from thin ether. Cool.


16 posted on 11/16/2022 8:31:52 AM PST by Flick Lives (Cui bono)
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To: Oldeconomybuyer

LOL

they actually thought that Pajama Boy CEO was going to save the world?

LMAO

nope! just steal it all and split like all liberals!


17 posted on 11/16/2022 8:32:25 AM PST by TexasFreeper2009
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To: Fido969

What is the over/under on him “committing suicide.”


18 posted on 11/16/2022 8:32:45 AM PST by Army Air Corps (Four Fried Chickens and a Coke)
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To: SaveFerris
Ponzi was a piker. My accountant friend, who always seemed to have a cold, told me that.


19 posted on 11/16/2022 8:34:07 AM PST by Larry Lucido (Donate! Don't just post clickbait!)
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To: Army Air Corps

It depends whether or not Hillary was getting “commissions...”


20 posted on 11/16/2022 8:34:49 AM PST by Shady (The #JihadJunta: "We are now a nation of Men, Not of Laws. You are not as equal as we are...")
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