Wolf of Wall Street Jordan Belfort Says Sam Bankman-Fried Used FTX As ‘Personal Piggy Bank’

Jordan Belfort, in any other case often known as the unique Wolf of Wall Avenue, is giving his view on what he thinks occurred behind closed doorways on the bankrupt crypto change FTX.

In a brand new Fox Enterprise interview, Belfort says it’s a false impression that FTX is a crypto change.

“It’s not an change. It’s like a brokerage agency or a financial institution that was holding clients’ cash, they usually had been mainly siphoning it off. He was utilizing it as his personal private piggy financial institution, Sam Bankman-Fried. Individuals deposited their cash in FTX as a result of they wish to commerce, like several brokerage agency. It might be the equal of going to JPMorgan Chase, deposit your cash in your Chase checking account and you then discover out that truly [JPMorgan CEO] Jamie Dimon has been taking your cash personally and going to Las Vegas and playing on the weekends as a result of your cash, his cash – what’s the distinction? 

That was what was actually occurring. He was utilizing all of those funds that folks had been depositing within the brokerage agency, FTX, and utilizing it as his personal private piggy financial institution. They purchased condos, no matter else they purchased. They had been playing on wild spinoff buying and selling, in order that they had been leveraging to the hilt. It needed to finish badly.”  

As as to if FTX traders will ever get their a reimbursement, Belfort says it’s unlikely that the corporate will make everybody entire.

“I strongly doubt that there’s some huge cash right here to be gotten again. In case you’re leveraging the best way they had been leveraging, it’s very easy to take these large losses. I don’t suppose they had been excellent merchants, by the best way.”

Belfort concludes that FTX was fashioned to fund Alameda Analysis, the crypto change’s quant buying and selling arm.

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