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Move aside Do Kwon, crypto Twitter has a new villain: Sam Bankman-Fried.
Yes it’s quite a whirlwind of events but Blockhead is here to break it shed some light on the ensuing mayhem.
TLDR: CZ sold FTT holdings after a report revealed SBF’s Alameda Research was heavily reliant on the FTX token. CZ signed and LOI to acquire rival FTX but pulled out shortly after. The markets have tanked, withdrawals have been halted and now everyone hates SBF.
Unsurprisingly, there has been no love lost for SBF. On Twitter, crypto personality Cobie wrote “SBF seems by far the worst, with the least bad being Do Kwon (built something flawed but didn’t lie to people about what it was or how it worked).”
Whilst FatMan Terra disagreed slightly about Do Kwon’s not-so-truthful past, he supported the idea that SBF is worse. “[Do Kwon] lied about a lot of things actually, there’s a laundry list,” FatMan tweeted, attatching a link to a previous tweet of his. “But yeah, if the SBF allegations are true then Do pales in comparison.”
Another tweeter also wrote, “SBF is the worst criminal in crypto Mt Gox were the victims or hackers/theft, 3AC Terra Luna were incompetant or wrong but trying But SBF Bankman Fraud just plain stole customer funds while pontificating to lawmakers.”
Elsewhere across the Twitterverse, victims have been sharing about their losses. “if i dont get my money back from FTX i legit lost more than half of my networth im rly scared ngl,” wrote one Twitter user.
“I have a dumb question. If I bought bitcoins through FTX and FTX goes belly up where do they go?Like Bitcoins are finite right? Does anybody have access to them or are they just lost in the ether or something forever?” Questioned another, to which responders confirmed that his funds are most likely “gone.”
“I’m finding it really hard to stomach my losses from the FTX debacle This is a set-back like no other My suggestion is that you should probably bite your tongue on what you think may or may not happen to peoples funds on FTX Especially as many have lost everything,” said another.
It’s a similar story on Reddit, with one poster wrting “MY LIFE IS OVER. SEE YOU ON THE OTHER SIDE.” Some who replied were sympathetic, sharing similar experiences. “Yep, i saw it. It’s fucking over. Half of my life savings…” wrote one person.
Others criticised the victims for holding funds in FTX. “Why do people keep their crypto on exchanges?” Questioned one user. “Don’t want to rub salt into the wound but WHY would you keep half of your life savings on a CEX after what happened over the course of this year?” Asked another.
Meanwhile, SBF has been busy playing League of Legends. In a screenshot circulating Twitter, it appears that SBF logged onto the game amid the FTX chaos and played multiple games for a collective time of over one hour across 24 hours.
His Excellency to the rescue
CZ might be out but His Excellency Justin Sun might be SBF’s saviour. Just hours after CZ’s exit, the Tron founder tweeted that his team is “putting together a solution” with FTX.
“The ongoing liquidity crunch, despite short term in nature, is harmful to the industry development and investors alike,” Sun added.
“My team has been working around the clock to avert further deterioration. I have faith that the situation is manageable following the wholistic approach together with our partners. Stay tuned.”
Of course no details have been released about how exactly Sun will form a deal with FTX but crypto Twitter remains skeptical. “Chad move. If not enough for everything, you may be able to fully return up to 250k like FDIC insurance so at least all small accounts can be saved from this. Thanks for trying anyways,” one person replied.
“Save the day Justin. Do something good for once,” another said.