A cryptocurrency company collapses – and brings a whole lot of questions

November 15 – FTX, a massive cryptocurrency company, filed for bankruptcy last week. 

A few days earlier, the owner of the company was tweeting out that everything was fine, nothing to see here. 

Attorney Clint Barkdoll said, “There are individuals that have lost millions and millions of dollars with this crypto exchange. There’s going to be a federal investigation. This guy is likely going to jail. You’re going to see government regulation in all likelihood of crypto currencies now. There is fear of a contagion. That this kind of a scandal could really hamper or bring down the whole crypto industry. So this is a big story that we need to continue to watch.” 

The connection to US political parties is a real question a number of people are asking. 

Michele Jansen of NewsTalk 103.7FM pointed out, “It looks like this could be money laundering. Our tax money going to Ukraine, then getting invested in this crypto thing, which he was taking the money and giving it to the Democratic Party.” 

Pat Ryan of NewsTalk 103.7FM said, “We’ve asked long and hard here about hey, how about some accountability to the money that you continue to give to this president who we see on Vogue Magazine and now we’re finally talking about ending the war – how convenient after the midterms are all done. This thing stinks and if the FCC wasn’t in the way, I’d say something much worse.” 

FTX had a valuation of more than $32 billion at one time. 

Barkdoll said, “This is part of the problem with cryptocurrencies. They’re not traceable. So yes, there’s reporting of donations he made, which would have been done through regular currency and money that he would have presumably been making off of these cryptocurrencies, but this is the problem. These cryptocurrencies and the trading are anonymous, so we don’t really know who all may have had money in this company, who lost their money, how it may have been getting distributed in channels around the world. This is why the government is saying look enough is enough. Something needs to be done here to better regulate this because of the kind of trading that goes on, there’s obviously a lot of opportunity for nefarious things to happen.”