‘Wall Road Wolf’ J. Belfort calls FTX ‘slaughter’ drug-related, says SBF is ‘done’

    As the implications of the collapse of FTX, what was one of many largest crypto exchanges on this planet, are nonetheless felt throughout the cryptocurrency market, and after the arrest of its founder Sam Bankman-Fried, former stockbroker Jordan Belfort had a couple of issues to say about the entire scenario.

    Generally referred to as the “Wolf of Wall Street,” Jordan Belfort mentioned that SBF was “done” and that the implosion of the FTX ecosystem was largely fuelled by the amphetamine use of Caroline Ellison, the previous CEO of Alameda Analysis, who was arrested alongside SBF, as he advised within the interview with Newsmax’s Eric Bolling published on December 23.

    In response to Belfort, the scenario is taking part in out precisely how he thought it might, which is the cooperation of SBF and the opposite individuals concerned within the scandal.

    “They have copped pleas, which means that they’re giving a roadmap to the U.S. attorney and the FBI right now. This guy has got no shot. He has no defense. He’s gonna plead guilty at some point and cop a plea. He’s not going to go to trial, and he’s going to get sentenced. My guess is somewhere north of 50 years in jail, maybe even more.”

    ‘Open-and-shut case’

    Evaluating the alleged scheme with that of Bernie Madoff, the previous stockbroker mentioned that this was “really an open-and-shut case” of stealing individuals’s cash, for which there’s no protection.

    “So people were depositing money into FTX, thinking they were putting money into a brokerage firm and the money was being segregated into each person’s account, and he had a backdoor, taking the money out into Alameda which was his trading arm.”

    Belfort additionally mentioned that the FTX management had been “the worst traders on the planet,” dropping billions of {dollars} within the guess that was “being propped up by customer funds.” As he added, dropping a few billion {dollars} is “actually really easy because they were trading with leverage, and that’s the disaster.”

    Ellison and amphetamines

    Referring to Ellison, he additionally commented that “it’s very easy to lose massive sums of money” when medication are concerned, explaining that:

    “The thing about amphetamines and cocaine is that you think you’re sharper when you’re on them, but you’re actually not nearly as sharp, but you really think you’re brilliant, so in her own mind, she thinks she’s got this collective brilliance around her by being high on amphetamines.”

    On high of that, he believes that Ellison was lulled into the “false sense of security from when anyone could make money in crypto trading,” however that in a while, “the way they make money starts to collapse and now she has to be a real trader, (…) and she got absolutely, positively slaughtered on leverage fuelled by methamphetamines.”

    Missed crimson flags and dangerous buying and selling

    Earlier in November, Belfort expressed his view that the FTX collapse was seemingly premeditated, labeling SBF as a sociopath, and evaluating FTX’s enterprise mannequin to a ‘frat house,’ whereas questioning why its backers had failed to note the crimson flags, as Brokers reported.

    Additionally it is price noting that Gregory Coleman, the retired FBI agent who was concerned within the instances of the Bernie Madoff Ponzi scheme and Belfort’s prosecution, mentioned that prosecuting SBF was easy and that investigators solely wanted to comply with the cash whereas treating the scenario as dangerous buying and selling.

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