We have information that the tens of billions of dollars going to Ukraine were actually laundered back to the US to corrupt Democrats and elites using FTX cryptocurrency. Now the money is gone and FTX is bankrupt.
Treasury Secretary Janet Yellen called for crypto to be regulated after Sam Bankman-Fried, a 30-year-old Democrat darling, spent more than $40 million to ‘pay off’ DC elites to turn a blind eye to his Ponzi scheme through the crypto exchange he founded (FTX).
“Aid for Ukraine,” which has the backing of crypto exchange FTX, staking platform Everstake and Ukraine’s Kuna exchange, will route donated crypto to the National Bank of Ukraine, Everstake’s Head of Growth Vlad Likhuta told CoinDesk. Ukraine’s crypto-savvy Ministry of Digital Transformation is also involved.
The country’s collective efforts have already raised some $48 million in bitcoin (BTC), DOT, ether (ETH), SOL, tether (USDT) and other cryptocurrencies, according to the website. Other estimates place the amount closer to $100 million, but totals vary with market swings and exactly which websites are included.
Put another way, if you donated money to “Ukraine” via this mechanism, you actually donated to Democrats in a rigged election funded by illegal campaign contributions laundered through FTX (which is increasingly emerging as the crypto hub run by people with globalist ties).
Sam BANKMAN-FRIED. That is his name (we are told).
What kind of name is Bankman-Fried???
Dad is Joseph Bankman and mom is Barbara Fried. Is this a joke?
Can we believe any of what is being reported is real? Money was laundered to Ukraine by the US Congress using tax payer money to fund the Democrats and used to aid the rigging of the election. That is true.
Seriously, ... his name happens to be Bankman-Fried. That is very odd.
"...The United States, by contrast, is exercising great caution. Part of the reason for that hesitancy is the financial collapse of FTX, which is exposing evidence that the Democrats, some Republicans, the Ukrainians and FTX organized an elaborate financial kickback scheme. The scheme involved promising members of Congress who sent money to Ukraine a hefty contribution in turn from a Democrat benefactor. In this case, the owner of FTX. Once the U.S. dollars were credited to Ukraine’s account, President Zelensky and his partners diverted some of the proceeds to purchase crypto currency from FTX. FTX, in turn, sent some of that funds back to the cooperating members of Congress and the Democrat National Committee. This scheme is unraveling. The dummies mistakenly believed that crypto is untraeable. Nope. Thanks to block chain, eminently traceable..."
No exposure to Gibraltar subsidiary of FTX as Zubr Ltd has no clients & has not traded says Minister
Albert Isola, Minister for Digital and Financial Services, says there has been no risk or exposure to Gibraltar registered company Zubr Limited, following the multi billion dollar collapse of crypto giant FTX in the Bahamas.
Albert Isola confirmed the locally-based subsidiary of FTX, one of 134 corporate entities listed in the bankruptcy petition, has never traded and has no clients.
The Minister said Gibraltar's robust DLT regulation and corporate Governance means client assets are protected so as to avoid a similar scenario happening here.
Gibraltar has not been impacted by the multi-billion dollar collapse of FTX, one of the world’s biggest crypto exchanges, Albert Isola, the Minister for Financial and Digital Services, told Parliament on Wednesday, adding an FTX subsidiary licensed in Gibraltar had not started trading and had no customers.
FTX filed for bankruptcy in the US after speculation around the financial health of the platform saw a mass of customers attempt to withdraw their funds from the exchange, leading to its collapse.
The Bahamas-based cryptocurrency exchange filed for bankruptcy protection earlier this month as chief executive officer and founder Sam Bankman-Fried resigned.
FTX has so far said it owes its 50 biggest creditors nearly 3.1 billion dollars (£2.6 billion), although debtors found and secured “only a fraction” of the group’s digital assets they hope to recover, with about 740 million dollars (£626 million) of cryptocurrency secured in new cold wallets.
FTX has a subsidiary in Gibraltar called ZUBR Exchange Ltd, a company which is named in the US bankruptcy proceedings as part of the wider network of companies FTX had in multiple jurisdictions around the world.
But asked by GSD MP Roy Clinton about ZUBR and any implications for the Rock, Mr Isola said the issue was being looked into by the Gibraltar Financial Services Commission but that Gibraltar was “out of harm’s way”.
Mr Isola also played down any risk of knock-on contagion as a result of the FTX bankruptcy and said Gibraltar’s regulatory framework sought precisely to prevent situations of this nature.
"The GFSC has reached out to licensed firms to ascertain any potential impact and their current exposure," Mr Isola said.
The firms, he said, had confirmed they had "little direct exposure to FTX or related companies".
"As part of the regulatory regime, firms are required to have appropriate measures in place for the custody and segregation of customer virtual assets,” Mr Isola added.
"Customer monies are required to be segregated."
"ZUBR has not been operational in Gibraltar as they had matters pending regulatory approval and therefore it has not customers and thus there is no risk to customer funds."
"Consequently there has not been any proof of reserve, as they have none."
Mr Clinton welcomed the statement but pressed the minister for further detail.
Despite daily global media coverage of the FTX collapse, the GFSC has made no public statement on the matter. The Chronicle, for example, has been seeking comment from officials there since last week.
"The FSC has issued no comment whatsoever about this and there is no restriction against that license," Mr Clinton said.
"I just wonder whether it would be opportune for the FSC to perhaps make it clear that [the company], as the minister has said, has no clients and there's no risk."
Mr Clinton also raised concerns that ZUBR was still listed on the GFSC website as a licensed company with a live licence.
"Given that the entire structure is subject to bankruptcy proceedings and regulatory scrutiny in the US and other jurisdictions, with certain allegations of monies being missing, it would be prudent for the regulator in Gibraltar to issue their own statement to pre-empt any suggestion that Gibraltar is in any way implicated in anything that may have happened in the group elsewhere, and to reassure outside observers that the FSC is obviously doing its job as it is, as the minister has said,” the GSD MP told Parliament.
"I can't see it happening in any other industry, in banking or insurance for example, where a group goes bust in this spectacular way and a subsidiary entity is allowed to continue to hold its licence and operate as if it was business as usual."
"It has no clients, its not doing business, but the license on the FSC website does not say it cannot do business."
Mr Clinton also noted that a search in Companies House showed that Mr Bankman-Fried remained listed as one of ZUBR’s directors.
"I would have expected that some action would have been taken to remove this individual as a director or have him removed, the records updated and a note, if necessary, attached to the licence on the FSC website to that effect."
"Because otherwise it would appear that this entity can continue trading as if nothing had happened."
Mr Isola said the regulator was required to act in accordance with the law and that there was a set process and procedure that had to be followed to revoke the licence of a firm.
That included issuing a notice and allowing a period of time for representations to be made, followed by submission to the Decision-Making Committee set up under the Financial Services Act, which has the power to revoke or suspend a licence.
"I would fully expect the regulator to be doing that, and that's a process that takes a little bit of time," Mr Isola said.
"And I have no doubt whatsoever that is being done."
He said too that just because the company was listed as a licensee on the GFSC website did not mean it was authorised to trade.
He said ZUBR had initially been promoted by different people when it was awarded the licence and that FTX had then acquired that licence.
That process required FTX to obtain approval from the regulator for a change of control and a change of business
"Those haven't been done yet, so the company is not authorised to trade because its change of business is pending approval,” Mr Isola said.
"So consequently, until those processes with the regulator have been seen through, they're not authorised to trade."
"Which is why they have no clients, which is why there is no business, which is why there is no need for a proof of reserve, because they haven't started trading because they're not authorised to trade."
"And if they did trade before that authorisation had been approved by the regulator, they would be committing a criminal offence under the Financial Services Act."
But Mr Clinton insisted that this was not a "run of the mill" situation but rather "as serious as it gets", adding he would have expected a much faster response from regulator.
Mr Isola repeatedly stressed that the regulator needed to follow a legal process and that there were no consumers affected.
"Nobody is in harm's way and nobody is being impacted upon and nobody is saying internationally that they were regulated in Gibraltar," the minister said.
"So those issues become less relevant."
"It's clear where the company was being managed from, I don't think anybody's disputing that, and so we are out of harm's way, thankfully."
Mr Clinton also asked about "contagion risks", meaning whether there was any concern that the FTX collapse might impact on other companies regulated in Gibraltar.
He highlighted too recent comments by the deputy chairman of the Bank of England, Sir John Cunliffe, who highlighted the need for regulation.
Mr Clinton said that unlike in other areas of finance, crypto exchanges were often involved not just in trading but in the custody of assets.
"My concern is whether they are self-custodying and to what extent the minister sees that as a risk," he said.
Mr Isola said Sir John was "calling for regulation" for digital custody holders and providers and the firms in this space, "and that's precisely what we do".
"I actually think that the reason why we haven't been impacted upon is because we have the regulatory standards, we have the [regulatory] principles that we have."
"The different core principles that we have address specifically the issues that FTX has suffered from, [such as] lack of corporate governance and segregated assets."
"They didn't have them, they were all mixing together and everyone did what the hell they wanted and the moved money in and out without care for any of the issues that we provide for."
"Market manipulation, the 10th core principle, specifically prevents firms from doing what these guys appear to have been doing. And it's early days yet."
"But I think that we should be looking at our core principles and saying, 'why are the firms that we have so little impacted by what's happened, when other firms in other places have been hugely impacted upon."
"And so instead of looking for the little tiny black spot on a piece of white paper, I think we should be saying 'actually, we've done pretty well', and although there are lessons learnt in everything that happens, and we need to revisit some of those and the point [Mr Clinton] has mentioned could be one of them.”
“The question is: what can we do to better protect consumers in our jurisdiction? And that is an exercise that I know the regulator is very alive to and currently doing."
"I think the fact that we have done as well as we have done in limiting the contagion from this business is something we should congratulate our regulators on and see how we can do even better to protect consumers in the future than we currently have done."
Fintech Dave Announces Repurchase of $100M Convertible Note from FTX
Dave Inc. which claims to be one of the nation’s leading neobanks, recently announced it has reached an agreement with FTX Ventures Ltd.
As covered towards the end of last year, Figure Technologies, along with former NYSE Executive Tom Farley and VC Proof Group, are planning to acquire what’s left of FTX.
Figure, founded by top Fintech entrepreneur Mike Cagney, operates one of the more successful enterprise blockchain platforms. Farley currently runs Bullish, a small crypto exchange that is currently ranked #81 by CoinMarketCap. Bullish does not provide services in the United States and is licensed in Gibraltar – a crypto-friendly jurisdiction.