CRYPTO MARKETS ON A KNIFE EDGE: BINANCES’ LEGAL DD WILL EXPOSE SBF FRAUDULENT HISTORY: ITS JAIL TIME
In a historic move of brilliance, CZ paused the death spiral for SBF’s house of cards and calm markets. But this is only the beginning! The whole crypto market will be on edge over the next few weeks as CZ tries to play out the scenarios.
Unlike Elon’s twitter move, where Elon couldn’t’ back out, CZ was brilliant enough to have a “non binding Letter of intent”. Elon Musk knew that twitter was full of bots going, so trying to back out of it on this basis, wasn’t going to work. Elon thought that he could pump dodge to make enough to fund his twitter acquisition, but found he didn’t have enough market impact anymore. Elon then desperately sought funds from the Middle East using his Telsa shares as collateral without many takers, before CZ came through as his white knight to save him.
CZ learned from Elon. CZ can, and most likely, will back out. CZ knows the SBF empire is a house of cards built on frauds. CZ knows that market cannot unlearn, that SBF has stacked artificial assets created ‘out of thin air’ upon layers and layers of the same.
The mass withdrawal of real funds and real digital assets from the SBF exchanges ( so far focused on FTX ), is the tide that exposes SBF. He is left with an insignificant amount of real cash and crypto; heaps of inflated fraudulent crypto assets he himself has manufactured that no one will touch; and, the counterfeit digital currencies manufactured on the digital exchanges
What can CZ do?
Lets look at the issues:
1. How to cover up the fake trade in the crypto market?
It is only fear of dealing with the reality of the fake trade in the crypto market, that has kept shitcoins like SOL alive. The realization is slowly dawning that most trade on most exchanges is just fake ‘market making’ trading of which Alameda was King. CZ must realise that growing skepticism will bleed into questions about Binance as well. Sure, Binance does not have the fraudulent conflict of interest evil of SBF, but how are people going to know?
What Binance can’t fix, is the absolute lack of demand and therefore illiquidity of SBF manufactured tokens. There is no organic demand for the SBF shitcoins. Fake volume trading to raise the ranking of FTX, extends to other SBF exchanges such as Liquid. Liquid has seen huge lifting in the ranking of exchanges by fake volume trade. Is Binance going to guarantee the value of SBF shit coins used as collateral for its outstanding loans?
2. Will SBF going to jail, satisfy the markets?
The criminal prosecution of SBF and his puppet masters such as Dan Freiberg, can help public digestion that this inherent market fraud can be quarantined to the SBF criminal cartel.
CZ won’t mind SBF going to jail. SBF has done his worse in using black opps PR firm M Group Communications and lobbyists to attack CZ. So SBF has already fired his load, and CZ has survived.
SBFs puppet master, Dan Freiberg has a standard play whenever his frauds are exposed. For instance, Dan’s on-line gambling fraud was exposed which had with a “god mode” that allowed Dan to see all the players cards, positions and vulnerabilities and invite his associates to move in and fleece the players, his playbook was consistent. First, he re-wrote history backing transactions to quarantine losses into a corporate shell without assets. Second, he fabricated the evidence of witnesses to suite the new re-written narrative. Third, he shut everyone up with cash and an NDA.
So we can expect a patsy will be thrust into the media as the villain as the rogue operative. We can expect SBF shell companies suddenly being dropped in the media as the apparent trading companies all along.
3. What about the stack of law suits against the SBF cartel revealed as part of the legal due diligence?
Dan Freiberg, true to form, has buried many of the law suits – shutting up the founders of the projects they have defrauded with NDA’s. But not all. ICP, Ronin, Aptos, and a host of others have cases against the SBF cartel according to legal experts. Going off the Freiberg playbook, even where founders have signed NDA’s, such as Casper; that wont prevent the class action by investors, depositions and calling the founders to give evidence to pierce the NDAs.
The class action by NuGenesis Coin holders in multiple jurisdictions in the Middle East, as well as by NuGenesis itself in Australia, will be showcase of the SBF frauds in operation. With a blow-by-blow play that exposes the SBF playbook, the case shows how the SBF exchanges compel the use of Alameda as the MM to a new project listing. How Alameda dupes project to lend them a ton of Coin, risk free, and then dumps the coin with only buyers allowed in as Alameda entities. A classic case of decimating a project and, at the same time, stealing its tech and using it with other SBF projects.
Those court actions, such as NuGenesis, hit the hardest are direct competitors to SBF shitcoin Solana (‘SOL’). Does CZ want to have anything to do with this bottomless pit of liability? Does he want his own financial deals with SBF exposed in multiple court rooms across the world or at public hearings by regulators and legislators?
4. Will CZ be perceived as the next SBF with an even greater monopoly?
The scenario of CZ buying FTX has longer term consequences for CZ. CZ must be able to work out that if he buys FTX, he becomes effectively the crypto casino. It will make him a total monopolist of the crypto market. All eyes of regulators will be focused squarely on CZ and between legal demands for information and subpoenas to hearings from multiple jurisdictions, CZ wont have time to scratch himself. Every crypto newb that loses money will suspect CZ was behind the loss with the market making. It is unimaginable that CZ would want this.
The most likely scenario to play out ?
How the death spiral for SBF will playout, depends much on the stench that the exposure of his fraudulent dealings will generate. Blackrock could save SBF, but he has such toxic PR that will bleed into Blackrocks’ reputation. It has a much broader game plan to be distracted by SBF con-artestry made industrial. SBF’s fall from grace is too public from saving by particular intelligence operations.
Ultimately, CZ is likely to walk away from any deal to save FTX. His legal teams’ due diligence will inevitably unmask a trove of liabilities that Dan Freiberg has been burying. The malignant legacy of arrogant decimation of crypto projects is too virulent to have any value.
With the cancer of SBF destroying decentralization and the beauty which the blockchain technology inspired to create the crypto capital markets, the opportunity to restore the markets on proper foundations becomes possible.