Sam Bankman-Fried says that incompetence created the situation at FTX.

There is a great deal of reporting that says that events took place that make SBF’s claims seem unlikely to be true.

I will say: The reporting makes a lot of claims which aren’t backed up by any evidence besides the testimony of anonymous sources.

For example, the claim that SBF bought $121M in real estate for his parents with costumer funds. Okay, but where are the documents that show that? I haven’t seen them. That doesn’t mean they don’t exist. But I have not seen them.

Is there a small possibility that Sam Bankman-Fried and his confederates just had zero clue how to run an exchange?

I think there is.

Does that obviate criminal liability? Almost certainly not.

There is absolutely no way to operate an exchange the way that FTX claimed it was operating. You cannot facilitate huge, enormously concentrated positions with tremendous leverage in extremely illiquid assets and do so without risking a huge blow up.

It would be like setting up a pure penny stock exchange, offering OTC derivatives, massive leverage, lending, etc. to accounts worth hundreds of millions of dollars.

It just DOES NOT work.

You can never possibly ever take the positions necessary to hedge certain risks. You can never liquidate customer positions that go bad, because the markets are too illiquid. And there are many other problems.

People who send in these kind of nutty messages NEVER use proper punctation or paragraphs. It’s almost always an incoherent wall of all-caps rantings, laden with spelling and grammatical errors.

I get probably a dozen per week, depending on the news cycle.

When you’re a conservative, they don’t even call you for comment before publishing a story. And you’re banned from Twitter, unable to respond to accusations in any meaningful way.

Kanye West has demonstrated himself to be a mentally ill nitwit.

Kanye West says “I like Hitler”

This person is a totally sane genius. You are the crazy one!

Harley Pasternak cared about Kanye West enough to try have him institutionalized.

Ye just said “let’s have Laura Loomer call in”

I just called in. I’m on the line.

Ye: "We gotta stop dissing the Nazis all the time"

Alex Jones: “I’m your co-host here in insane asylum world”

To be clear: Adolph Hitler did not invent the microphone. The German inventor who is credited with its invention died in 1929, 4 years before Hitler came to power.

Kanye West: “We have to stop using the word ‘evil’ next to ‘Nazis’”

Loomer on now

https://banned.video/channel/the-alex-jones-show

Kanye West just now acknowledges that he is “drinking” and “smoking” [pot presumably].

Sony previously had to cancel a Kanye West tour after he was hospitalized for marijuana induced psychosis.