Genesis Trading: Give Us at Least $1 Billion or We are Looking at Bankruptcy

By Stan Szymanski

Two weeks ago in ‘Are the SEC and The Federal Reserve Part of the Story of Bankrupt FTX? Derivatives Become an Issue’, I mentioned that Crypto lending and trading  concern Genesis Trading had $175 Million of its derivatives business tied up in an FTX trading account. At the time, Genesis said…’our operating capital and net positions in FTX are not material to our business’. On the same day I posted that writing, Genesis was given an ‘equity infusion’ by its parent (DCG) as I wrote Last week in ’Crypto Conglomerate Digital Currency Group (DCG) is at the Epicenter of the Cryptocurrency Earthquake’:

…’The lending arm of crypto investment bank Genesis Global Trading is temporarily suspending redemptions and new loan originations in the wake of FTX’s collapse, Interim CEO Derar Islim told customers on a call Wednesday.’…(Coindesk ‘Genesis’ Crypto-Lending Unit Is Halting Customer Withdrawals in Wake of FTX Collapse’ 11/16/22).

Then we found out …’Crypto investor Digital Currency Group is giving an equity infusion of $140 million to Genesis Global Trading, a company within its portfolio…“While the operation of our lending and trading businesses has not been impacted by recent market events, Genesis has taken steps to strengthen its balance sheet with an additional equity infusion of $140M from our parent company, Digital Currency Group,” Genesis told clients in an email’…

First they tell you that the derivatives money tied up in FTX is no big deal. Then, you find out that the parent of Genesis (DCG) infused $140 million into Genesis after the failing of FTX. Why did they really need the $140 million?

Today’s entry into the Genesis saga is a report from Bloomberg:

…’Digital-asset brokerage Genesis is struggling to raise fresh cash for its lending unit, and it’s warning potential investors that it may need to file for bankruptcy if its efforts fail, according to people with knowledge of the matter.’…

Genesis has spent the past several days seeking at least $1 billion in fresh capital, said the people, who asked not to be identified because discussions are private. That included talks over a potential investment from crypto exchange Binance, they said, but funding so far has failed to materialize.’…

When Bloomberg states…’ Genesis is struggling to raise fresh cash for its lending unit’…we can now assume that the problem lies with the lending side of the business. Lending typically involves debt, leverage and credit risk of who is asking for the loan.

What are we going to find out about Genesis that we didn’t know before? Will it be that like the business practices of FTX that Economist Martin Armstrong described in a blog today?

…What people must understand is that there is no record of these funds existing anywhere. No one knows who worked for FTX, as all basic information has been shielded. These mysterious employees were encouraged to use software that automatically deleted messages, and they often spoke in code.’…(FTX Deep Fake- The Funds are Gone-Martin Armstrong 11/22/22)

So first, Genesis told us that they had $175 million of their derivatives business tied up in the now defunct FTX and that …’net positions in FTX are not material to our business’…

Then Genesis suspended redemptions and loan origination and received a $140 million equity infusion from their parent, DCG.

Today, Genesis is claiming that while they are at their weakest point, that they are worthy of at least $1 Billion in brand spanking new money from investors or they might need to file for bankruptcy.

If Genesis is on the verge of bankruptcy, after this and the catastrophe of FTX,  how far behind can a failure or even a meltdown at Genesis Tradings’ parent, Digital Currency Group be?

It feels as if things are cascading out of control. Please note that this all started with a problem in the Genesis derivatives position because of the collapse of FTX. It is possible that other derivative positions are beginning to teeter and cause problems that are not public knowledge today. Tomorrow is another day.

The Genesis Trading soap opera has made it through another day. The real challenge is to see if they can make it through another tomorrow.

———-

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Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

EA Podcast Ep. 22 11/21/22 Like Venom Coursing Through Their Veins and Covid 19 Mortality

https://www.podbean.com/ew/pb-mwpvi-131ceba

Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

Worldwide Exclusive: Dr. Ardis Was WRONG

The SNAKE VENOM connection to the jab…

https://www.stewpeters.com/video/2022/10/worldwide-exclusive-dr-ardis-was-wrong/

Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

EA Podcast Ep. 22 11/18/22 Family Caregivers Forced To Fill In Gaps With DSPs In Short Supply

https://www.podbean.com/ew/pb-gznqh-1319e9d

Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

Family Caregivers Forced To Fill In Gaps With DSPs In Short Supply

https://www.disabilityscoop.com/2022/11/15/family-caregivers-forced-fill-gaps-dsps-short-supply/30138/

Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

Crypto Conglomerate Digital Currency Group (DCG) is at the Epicenter of the Cryptocurrency Earthquake

Photo Credit: USGS; Haiti 2010

By Stan Szymanski 

After writing last week about the troubles Genesis Trading had with the derivatives in their FTX account, Coindesk today reported this story about their new hardships:

…’The lending arm of crypto investment bank Genesis Global Trading is temporarily suspending redemptions and new loan originations in the wake of FTX’s collapse, Interim CEO Derar Islim told customers on a call Wednesday.’…(Coindesk ‘Genesis’ Crypto-Lending Unit Is Halting Customer Withdrawals in Wake of FTX Collapse’ 11/16/22)

Last week I wrote ‘Are the SEC and The Federal Reserve Part of the Story of Bankrupt FTX? Derivatives Become an Issue. In it, I included a quote from a Yahoo Finance story about the beginnings of stress on the derivatives at Genesis:

…’’Crypto broker Genesis said its derivatives business has about $175 million “in locked funds” in the company’s FTX trading account.

“This does not impact our market-making activities,” the firm said in a Twitter thread, adding “our operating capital and net positions in FTX are not material to our business.”…

Fast forward to Nov. 11, 2022-Coindesk reports that:

…’Crypto investor Digital Currency Group is giving an equity infusion of $140 million to Genesis Global Trading, a company within its portfolio.

“While the operation of our lending and trading businesses has not been impacted by recent market events, Genesis has taken steps to strengthen its balance sheet with an additional equity infusion of $140M from our parent company, Digital Currency Group,” Genesis told clients in an email, referring to the latest crypto market downturn caused by the collapse of crypto exchange FTX. The email was confirmed by a DCG spokesperson.

Do you believe that they were not impacted by recent market events? Neither do I. BTW, Coindesk is at least partially owned by Digital Currency Group.

Who is Digital Currency Group (DCG)?

The first claim on the DCG website is that DCG is…’The epicenter of the bitcoin and blockchain industry’…

The front page of the DCG website goes on to assert:

…’Our mission is to accelerate the development of a better financial system. We build and support bitcoin and blockchain companies by leveraging our insights, network, and access to capital.’…

So they are claiming to be the epicenter of the Bitcoin and blockchain industry. My first thought is that that is a strange choice of words, as an epicenter is something that is always at the center of an earthquake!

When DCG declares …’We build and support bitcoin and blockchain companies by leveraging our insights, network, and access to capital’… there is an interesting word in that phase; leveraging.

The first part of this saga starts when Crypto broker Genesis said its derivatives business has about $175 million “in locked funds” in the company’s FTX trading account.

The parent of Genesis is DCG. If Genesis holds derivatives, it is involved in leveraging.

Secondly, on Nov. 11, 2022 we saw that …’Crypto investor Digital Currency Group is giving an equity infusion of $140 million to Genesis Global Trading, a company within its portfolio.’… The term ‘an equity infusion’ is quite a broad term and could mean a lot of things.

It seems obvious in this case that Genesis was in some sort of liquidity crunch and apparently needed the $140 Million to keep the doors open (it wasn’t because the business was doing super and the parent wanted to make more money!). Was it because Genesis had been leveraging their bets with debt and the bet got tied up in a failed company ($175 Mill ‘locked’ in FTX) and they had to meet a margin call and get their account up to an acceptable level of equity to settle the debt? The $175 Million ‘locked’ in FTX was revealed on Nov. 10, 2022. DCG came through with the ‘equity infusion’ on Nov. 11, 2022. Do you believe in coincidences? If it was a margin call it probably happened due to the leveraging of pledged assets. Is that what ‘in locked funds’ means in double speak?

Then today we see: The lending arm of crypto investment bank Genesis Global Trading is temporarily suspending redemptions and new loan originations in the wake of FTX’s collapse, Interim CEO Derar Islim told customers on a call Wednesday.’…(Coindesk ‘Genesis’ Crypto-Lending Unit Is Halting Customer Withdrawals in Wake of FTX Collapse’ 11/16/22)

I would say that when the equity of the ‘house’ (Genesis) is below acceptable levels of risk, you stop lending money to people because they don’t have enough of a buffer to suffer the hit of another large negative event. Most likely a condition of them receiving the ‘equity infusion’ on 11/11/22. ‘Big Papa (DCG)’ IMHO had spoken.

How big is ‘Big Papa’? Let’s try to put it in perspective.

When I wrote my first article on FTX when all of this started (11/8/22) I was naive in thinking it was all about one company-FTX. After the bankruptcy was filed, we could see that FTX was a conglomerate of over 130 companies!

When I go to the DCG website and click on the ‘portfolio’ tab I count 166 crypto related business that DCG has an ownership interest in. One of those companies is FTX. 

So DCG, a conglomerate of crypto conglomerates, has a stake in FTX, a company who runs 130 companies itself. The effects of the FTX bankruptcy and its’ effect on the 130 companies that FTX owns will not be fully realized for weeks or perhaps months.

DCG also owns Genesis Trading which according to the Genesis website: …’Genesis connects institutional investors to digital asset markets. Trade, borrow, hedge, generate yield and more.’… so Genesis is lending, hedging and generating yield (which would typically involve leveraging). 

If FTX owned 130 companies, just how many does Genesis Trading own? According to the Genesis website:

“Genesis is the biggest trading desk for professional investors in cryptocurrency markets.”

— FINANCIAL TIMES, JANUARY 2022

“A digital asset prime brokerage – akin to Goldman Sachs in the traditional financial world – that offers its clients a full suite of services.”

— FORTUNE, MAY 2020

According to Financial Times and Fortune, Genesis is a behemoth. Just in the 3rd quarter of 2022 they traded $18.7 Billion in notional derivatives and had $2.8 Billion in active loans.

This ‘behemoth’ is the same one who received the ‘equity infusion’ from its parent, CDG. This same firm had $130.8 Billion of loan originations to institutions in 2021. Why would they need $140 Million from their parent company? Do you feel good about the prospects of this company after what happened to FTX considering Genesis still has FTX as one of its holdings on its website? How many companies does Genesis own/control?

DCG lists 166 crypto concerns (if I counted right) in its portfolio. FTX controlled over 130 companies. How many companies does each of these crypto concerns in the DCG portfolio hold? There are 165 (times how many companies each one controls) more to contend with if FTX is the crack that set off the tremor in the financial markets.

If DCG is as it claims (and IMHO I believe it is) …’The epicenter of the bitcoin and blockchain industry’, I believe that it truly will be at the epicenter of the most monumental financial earthquake in history. It is already involved with FTX, so that’s quite a start.

DCG gave Genesis Trading $140 Million in an ‘equity infusion’ after the FTX bankruptcy. DCG has positions/ownership in 164 (not counting FTX) other companies (all who own other companies). Just how many more times can Digital Currency Group afford to do this kind of bailout before it reaches its own liquidity crisis and says ‘no more’? DCG is already on the hook for FTX and now has Genesis Trading to bail out. In the 166 companies, just how much debt and leveraging is on the books? How much in derivatives has all that debt bought and how much of it will fail when the rest of the largesse of the crypto space falls precipitously like the star of Sam Bankman-Fried and FTX ?

Genesis has a problem in being exposed to the worst of crypto at the wrong time. In late June 2022 Yahoo Finance ran this story on Genesis: Genesis Faces ‘Hundreds of Millions’ in Losses as 3AC Exposure Swamps Crypto Lenders: Sources. FTX appears on the Genesis ‘Portfolio’ page of their website so they have FTX to negatively affect them. Crypto exchange Gemini warned customers today that there may be delays for withdrawals on its Earn product. This is due to the fact that Genesis is a lending partner to Gemini. And finally, Genesis has retained professional advisors to help them handle the storm coming at them.

There is no telling just how big and wide the problems of FTX, Genesis and DCG will spread. What can you do (this is not financial advice)?

Get out of the way.

Food. Water (and a way to purify). Shelter. Energy. Protection. If you have the wherewithal, precious metals have been money for 5,000 years and will last the rest of the days of the earth until the Lord Jesus returns for His people. 

IMHO, do not be in the ‘The epicenter of the bitcoin and blockchain industry’. It is a vast and violent quake zone we find ourselves in. Everyone will feel it. Some will lose all. All will lose some. Some will move their assets into the things that will see them through the convulsions that will change the landscape forever. A few will put their trust into hands of an eternal God who died on a cross and who, when He died, the earth shook and the world would never be the same. That is the only kind of earthquake that was beneficial for mankind. 

In whose mercy will find yourself when this earthquake hits?

———-

If you appreciate this article can you consider a gift to Encouraging Angels for the intelligence we provided today? Click this link to give. We need the support. Links to this article are encouraged. Reproductions of this writing are only allowed by written permission of the author.

All rights reserved. 

Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

Family Caregivers Forced To Fill In Gaps With DSPs In Short Supply

https://www.disabilityscoop.com/2022/11/15/family-caregivers-forced-fill-gaps-dsps-short-supply/30138/

Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

UN & ICC Now Guarantee World War III is the Only Solution

https://www.armstrongeconomics.com/world-news/war/un-icc-now-guarantee-world-war-iii-is-the-only-solution/

Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

EA Podcast Ep. 20-UN & ICC Now Guarantee World War III is the Only Solution

https://www.podbean.com/ew/pb-nbpj8-1316e17

Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

EA Podcast Ep. 19-Does Snake Venom=Covid Symptoms? Dr. Brian Ardis

https://www.podbean.com/ew/pb-6g4da-13155dd

Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

The Snake Venom Hypothesis of Covid – Dr. Bryan Ardis [VIDEO]

https://www.europereloaded.com/the-snake-venom-hypothesis-of-covid-dr-bryan-ardis-video/

Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

EA Podcast Ep. 18 11/14/22 1/2 Million Workers w/Long Term Disability / Maxine WatersFTX

https://www.podbean.com/ew/pb-mdsb8-13139f6

Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

EA Podcast 11/14/22 1/2 Million UK Workers drop out of Workforce/Multiple Mansion Maxine Waters Wants Oversight-FTX

https://www.podbean.com/ew/pb-mdsb8-13139f6

Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

Multiple Mansion Maxine Waters Wants Financial Oversight After FTX Malfeasance Derails The Democrat Crypto Gravy Train

Photo Credit: Newspunch

By Stan Szymanski

In the CNBC article, ‘Washington turns up heat on crypto ‘darling’ Sam Bankman-Fried following FTX bankruptcy’ the author Brian Schwartz highlights the point that, in light of the FTX collapse, the Cryptocurrency space needs more oversight:

…’The company’s implosion has led to the Biden White House and two powerful Democratic committee chairs to publicly criticize FTX and call for tighter oversight of the broader industry.’…

One of those Democratic committee chairs is Representative Maxine Waters:

…Rep. Maxine Waters, D-Calif., chair of the House Financial Services Committee, is considering opening a congressional inquiry, even possibly calling Bankman-Fried to the Hill to testify about the company’s near collapse in the coming weeks, according to a committee aide who requested anonymity to discuss private deliberations. Democrats are at risk of losing control of the House in January, depending on the outcome of several key races that haven’t been called yet.

“Now more than ever, it is clear that there are major consequences when cryptocurrency entities operate without robust federal oversight and protections for customers,” Waters said in a statement Thursday.

Isn’t it heartwarming that Representative Waters is so concerned about ‘protections for customers’ after the cataclysm has taken place and now the whirlwind is set to be reaped by the unsuspecting?

Rep. Waters was also concerned about ‘major consequences when cryptocurrency entities operate without robust federal oversight’. 

Was FTX operating without ‘robust federal oversight’? Take a look at this picture and let me know if you think that she, the chair of the House Financial Services Committee, had an idea of what FTX was all about: 

Photo credit: Zero Hedge

Why, my goodness, here is Maxine Waters in the same room and literally in the arms (at least one arm anyway) of FTX (now former) CEO Sam Bankman-Fried (SBF). Politics, as it has been said, makes strange bedfellows. Perhaps it can also be said that generous political campaign donations make willing bedfellows.

Sam Bankman-Fried was the second largest Democratic campaign donor during this election cycle to the time of 39.8 Million Dollars, only behind George Soros (approx. 128 million dollars). Two of his deputies at FTX, his cryptocurrency exchange–gave nearly $29 million more.

…’Bankman-Fried has supported Republicans during this cycle, primarily through his $2 million contribution to the blockchain and cryptocurrency-focused GMI super PAC. But the bulk of his giving, including $27 million to the Protect Our Future super PAC and $6 million to the House Majority super PAC, has gone to support Democrats. Bankman-Fried told Forbes last month that “much of this was for primaries, rather than D vs R general elections” ($33 million of his contributions were made during the first four months of 2022.)’…(Forbes/Zach Everson/11/11/22)

So the powerful Democratic Chairwoman of the House Financial Services Committee now says there has to be more oversight of crypto after the Democrats received millions through the ‘Protect Our Future’ SuperPAC. ‘Protect Our Future’ alleges to have an agenda …’to help elect candidates who will be champions for pandemic prevention’… Protect our Future is endorsed on their website by 27 politicians-26 Democrats and 1 Independent. I guess that there are no Republicans who would like to take money to be a ‘champion for pandemic prevention’. At a cursory glance, these Democrats seemed to have been overwhelmingly victorious during their election bids. 

Let it also be considered that generous political donations can lead to political victories. I assume that Representative Waters knows all this.

Given the fact that it was the Democrats who benefitted overwhelmingly through their one or two degrees of separation from former CEO Sam Bankman-Fried of FTX, a broad Cryptocurrency conglomerate of approximately 130 companies-Isn’t it a bit like the Copperhead calling the Rattler a venomous snake when Waters calls for more regulation? The Democratic Chairwoman calls for more regulation of crypto when many of the Dems still had the fresh  crumbs of the SBF dainties on their Versace suits and Prada shoes as the last cookie was taken from the cookie jar (benefits of the SBF crypto money)-Isn’t this just a Potemkin Village of  vultures masquerading as ‘pandemic do-gooders’? 

Now that we have learned that the funds that the US voted to send to support the Ukrainian war effort was in reality then sent from the Ukrainians into FTX and is reported that according to some observers, back to the Democrats. 

…’It __seems__ Ukraine was receiving money from the US, Ukraine sent it to FTX, and FTX sent it to Democrats, who originally voted to send it to Ukraine.  At this hour, it __appears__ to some observers, to be pure, criminal, money-laundering, and a criminal conspiracy to violate campaign finance laws.’… (Hal Turner Radio Show). Did the chair of the House Financial Services Committee know this information before it was reported on The Hal Turner Radio Show website?

Does Maxine Waters want to protect the American investor or does what she really want is to control the FTX and Ukrainian narratives before they start to burn out of control like a prairie fire? As Americans what we really need is protection from people like Maxine Waters who meet and photo op with Crypto billionaires, who own multiple million dollar mansions and who apparently get their palms greased one day and on another tells us all how sour the grapes are when the squeeze from the Crypto biz isn’t what it used to be when malfeasance derails their misbegotten gravy train.

———-

If you appreciate this article can you consider a gift to Encouraging Angels for the intelligence we provided today? Click this linkto give. We need the support. Links to this article are encouraged. Reproductions of this writing are only allowed by written permission of the author.

All rights reserved. 

Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

BREAKING NEWS: UKRAINE "MILITARY AID" FROM USA --- WAS INVESTED IN CRYPTO "FTX" BY UKRAINE!

Read. Learn. Understand what these people are involved in.

https://halturnerradioshow.com/index.php/en/news-page/world/breaking-news-ukraine-military-aid-from-usa-was-invested-in-crypto-ftx-by-ukraine

Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

Stranded Without Care, Man Loses Limbs Because Of Severe Staffing Shortage

https://www.disabilityscoop.com/2022/11/11/stranded-without-care-man-loses-limbs-because-of-severe-staffing-shortage/30131/

Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

Are the SEC and The Federal Reserve Part of the Story of Bankrupt FTX? Derivatives Become an Issue

By Stan Szymanski

At this point, most people who follow the cryptocurrency as well as the equity and bond markets are aware of the awful mess at FTX Group and its ‘sister’ company, Alameda Research. Both of these companies were founded by Sam Bankman-Fried. I reported this when the news broke-you can read about it here.

In a nutshell:

…’Crypto exchange FTX lent billions of dollars worth of customer assets to fund risky bets by its affiliated trading firm, Alameda Research, setting the stage for the exchange’s implosion, a person familiar with the matter said. … FTX Chief Executive Sam Bankman-Fried said in investor meetings this week that Alameda owes FTX about $10 billion, people familiar with the matter said.‘…(Wall Street Journal online)

Today, FTX group has filed for Chapter 11 bankruptcy and its founder, Sam Bankman-Fried (SBM), has stepped down as CEO. A new CEO has been appointed to maximize stakeholder recovery.

On the surface, those two facts would seem to be the big news of the day for the crypto token and company that has fallen from lofty monetary heights. But in reality, it is far from the being the biggest news of this 24 hour period when it comes to FTX.

The biggest news IMHO that has come to light this week regarding the FTX saga has not been reported by the standard mainstream financial talking heads of Bloomberg, The Wall Street Journal or Barron’s. It comes from a man who has made a name for himself when it comes to cryptocurrencies as well as precious metals: Bix Weir.

Mr. Weir runs the ‘RoadToRoota’ website where he has reported daily for over a decade the goings on in the precious metals and cryptocurrency market. Bix is well known for his reporting on the ‘Silver Slamdown’ of Black Sunday (2011) in the silver market. The ‘Road To Roota’ theory as he defines it: …’"The Road to Roota Theory postulates that there is a group of people in the United States as well as around the world that are working to remove and destroy the financial banking powers that have secretly controlled all aspects of our lives for hundreds of years." 

His revelations yesterday were extraordinary.

…’Wow! It looks like there is an MIT Crypto Mafia run by the SEC's Gary Gensler that includes his old boss at MIT Glenn Ellison as well as his daughter Caroline Ellison...the current CEO of Alameda Research of FTX fame! Will Gensler throw the daughter of his old boss in JAIL or was Gensler himself involved in a DeFi Ponzi SET-UP to crash the cryptos and implement massive REGULATIONS?! This shit stinks!’…(via the RoadToRoota YouTube channel 11/10/22)

Gary Gensler is the current chair of The Securities and Exchange Commission. He was sworn into that office in April 17, 2021. Before that however, he was (and apparently still is) a professor at MIT who taught ‘blockchain technology, digital currencies, financial technology, and public policy’. 

According to Mr. Weir, Genslers’ boss at MIT was Glenn Ellison. Ellisons’ daughter Caroline, was named co-CEO on Oct. 12, 2021 of Alameda Research before being named sole CEO in late August of 2022. According to Coin98…’In 2021, Alameda Research was one of the most influential venture capitals in crypto. They participate in investing in crypto projects and trading, OTC, and market-making.’…

Given this information, it would be naive to think that the three letter agency that he heads was uninformed as to what was transpiring at FTX and Alameda. What Weir is questioning seriously is the possibility of Gensler being enmeshed in a Ponzi scheme with FTX/Alameda to bring cryptocurrencies down, assumedly to make the US monetary authorities and offerings (like a new central bank digital currency) look good by comparison.

Bix also opined if Gensler would throw Caroline Ellison in the pokey. When is the last time you saw someone who committed horrendous banking crimes like the banks that wrote and approved mortgages for people with no job, no income and no assets like what happened in 2007-2008 as depicted in the movie The Big Short? Did you hear crickets? Me too. So that makes the former assumption above by Mr. Weir a bit more plausible.

Of course we need to ask: Where did all the money from these loans go to? Orphans’ homes? Or to connected people? Only time will tell.

A second related item I wanted to share with you was a calendar entry earlier this year of the ‘esteemed’ Chair of The Federal Reserve, Jerome Powell.

I must thank a premium member of Zero Hedge for pointing the following out:

From 1:00-2:00pm on February 1, 2022 Chairman Jerome Powell was scheduled to meet with: Sam Bankman-Fried, CEO and Founder, Brett Harrison, President, Ryne Miller, General Counsel, and Mark Wetgen, Head of Policy and Regulatory Strategy, FTX US and Zach Dexter, CEO, FTX US Derivatives. (Full document can be seen at https://www.federalreserve.gov/foia/files/chair-powell-calendar-022022.pdf) 

(Blue highlight added for emphasis)

So, ladies and gentlemen in early 2022 the Chair of the Federal Reserve met with the leadership of the U.S. arm of FTX-including the CEO of FTX US Derivatives.

For what purpose?

If you care to look at the ‘FOIA’ link above, you will see, at least on that day, the chairman held most of his meetings in a ‘virtual’ manner. Why would the Fed Chair have to have an ‘in person’ meeting with FTX?

Does it have anything to do with what happened during the last week in the crypto market and more specifically FTX/Alameda Research? What about the derivatives?

…’Crypto broker Genesis said its derivatives business has about $175 million “in locked funds” in the company’s FTX trading account.

“This does not impact our market-making activities,” the firm said in a Twitter thread, adding “our operating capital and net positions in FTX are not material to our business.”…Broker Genesis’ Derivatives Unit Has About $175 Million on FTX Platform (6:20 p.m.) (Yahoo Finance)

It is quite possible that we have yet to see the full effect of derivative exposure to the FTX problem. In a second nutshell, if the derivatives implode the entire system does as well. Goodbye pension, goodbye 401(k), goodbye savings in the bank.

Again, perhaps only time will tell. But if we are lucky, perhaps someone on the inside will tell. 

———-

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Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

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Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

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Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.

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Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.