This may be the final episode of the entire FTX saga. For over a month, the whole crypto market has searched for the truth about this fiasco. While the only legacy that carries on is the repercussions of the crash, the findings between Caroline and Gary ratting SBF to the FEDs may just put a close to this chapter.

This may provide temporary relief, but we must remember this event took the space a few years back; some argue even further with the looming macro-conditions.

Before diving in, here’s a recap of what happened to SBF over the past week. The US filed criminal charges against FTX founder SBF which initiated the arrest by Bahamian authorities. SBF was denied bail by the Bahamas judge and then signed legal documents to be extradited to the US. SBF goes under U” custody, is placed “under house arrest and ordered to surrender his passport. Currently, SBF is on $250M bail.

1. It all came true

Whatever we were suspicious of was true. SBF lied about everything, Gary Wang built a back door to FTX for Alameda to sweep funds, Caroline ran Alameda as CEO, and SBF invested in real estate, politicians and venture capital.

2. The blame games go on, “Sam told me to do it.”

Caroline said that SBF directed her to take customers’ funds from FTX in exchange for the made-up FTT. If this was true, it might contradict SBF’s claims of repeatedly mentioning that he “did not know.”

While this might be a wise decision by Caroline in throwing SBF under the bus, was there a more significant motive in play?

On the 12th of December, the SEC awards more than $20M to any whistleblower. It seems pretty convenient.

3. It all started with LUNA

Recalling the LUNA incident right now is still a painful memory. But even more for the entire crypto market. A giant hole was created when the crash of LUNA went beyond what we see on the price charts.

Despite already borrowing billions from FTX customer assets, when the market literally went from 100 to zero that day, SBF’s Alameda could not fulfil its borrower obligations.

SBF ordered Caroline to take FTX’s customer money, likely to cover the hole created by the LUNA contagion.

FTX and Alameda were like the house of cards that would have fallen. Eventually, CZ just made the first move.

4. Alameda breakdown = 90% SBF + 10% Gary

Many know about the open secret that SBF operates both FTX and Alameda, even when he claims they are separate entities. Alameda was Sam’s, and Sam was Alameda.

Below we see that the two sole equity owners of Alameda research were SBF and Gary. SBF has been the CEO since inception until the CEO mantle was handed over to Caroline and Sam Trabucco.

This begs the next question, could Sam Trabucco have known things before he left? Especially when he conveniently left as things started to crack at FTX.

5. SBF was always the main character

Even after naming Caroline and Sam Trabucco as Co-CEOs of Alameda, SBF was still in absolute control.

Just like I said before, Sam is Alameda. Whatever we see on paper are representations of his puppets.

SBF was the main character, which now means anything happenings between FTX and Alameda could be artificially orchestrated by the guy at the top.

6. Alameda got the exemption card

This was unsurprising. The truth was bound to get out. SBF’s Alameda was exempted from FTX’s risk management process.

This is something scary when a single person owns more than one entity. Collusion is bound to happen, and this was the result of it.

FTX has a decent risk management system, but it was for everyone other than the biggest user, SBF.

While statements from SBF and Caroline continue to contradict each other, at least SBF was able to have a decent collateral bag in $FTT… lol.

7. Eight billion went, poof

Alameda was not required to pay interest on the liability reflected in the FTX accounts. Its portion amount to more than $8B in FTX customer assets deposited into Alameda-controlled bank accounts.

These were actions taken by SBF to hurt FTX. He is no Robinhood; he is a thief who wanted to cover his tracks.

The way SBF interchangeably moved assets between his two entities reveals his shady and unusual character.

8. The Magic Box of “Securities.”

All the coins that SBF shillled were magic beans. They were selling a dream, and SBF probably lied about all of them.

These magical beans also can manipulate the price of $FTT, basically printing more tokens to increase the value of how much Alameda has as a whole.

This alleges that FTT “is a security” because FTX was working to increase the value of FTT by buying and burning it and adding another use case for it.

9. SBF’s ATM machine was FTX

Imagine if you have your fund “borrow” customer brokerage assets, then “lend” those from your fund to yourself, but you don’t document the loan. Is it even a loan? Doesn’t that make it money laundering?

10. FTX Customers withdrawing $5B in one day

Well, this could be the record to beat.

Closing thoughts

The truth will always prevail, but I am still baffled at how this went under our noses for months before the lead of Alameda’s balance sheet on the Coindesk article. In my opinion, SBF did everything to cover his trail, but as the snowball of lies gets bigger and bigger, the bubble eventually popped for all to know.

One thing is for sure; humans can not be trusted. While we can blame it on human nature, the magnitude of this event will be difficult to forget and one to remember.

Also Read: Signs The FTX Crash Was Bound To Happen

[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]

Featured Image Credit: Chain Debrief