FTX crypto exchange crash creates allegations of laundering


The new york times

The CEO of FTX, Sam Bankman Fried

Matthew Fox

As of November 11th, 2022, the Crypto Exchange Market FTX filed for chapter 11 bankruptcy, costing the company over 8 billion dollars. The exchange market, at its peak, was handing over 9 billion dollars worth of crypto currency trading every day. It had reached such a point that even the Ukrainian government was considering purchasing 1 billion worth of bitcoin to assist in funding the war effort. 

The collapse comes as a result of a lack of liquidity, and a massive amount of user withdraws, to add to this, the native coin on FTX, called FTT, plummeted in value. Which also sent Bitcoin and Etherium down with it. Effectively creating a great-depression-esque “run on the bank” problem. Ultimately leading to the collapse of the company.

The laundering allegations, however, come from a variety of sources. To start, the CEO of the company is the 2nd largest donor to the Democratic party, only second to George Soros. A primary issue that critics have, however, is Ukraine’s purchase of funds from FTX.

Which some claim is a vehicle for this money to wash back to the democratic party. But again, it should be clarified that this is a CLAIM, and as of writing this there is little to prove that any of this money ended up back in the hands of the democratic party.

The major concern with this, however, is that the money that was supposed to end up in the hands of Ukraine, has actually circulated back to the Democratic party. If this was true, then it would be one of the biggest laundering schemes in history. However, as the war in the East escalates, so too will American aid, as more and more money is funneled to Ukraine, concerns over money laundering will only grow.