Veteran Shortseller Predicted FTX Implosion Months Before

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Last Updated on 20 November 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Crashes always have unpredictable winners who afterwards knew better than the others. In 2008 there was Michael Burry who had been betting against the US housing market for 2 years. In 1992, George Soros knew that actions by the Bank of England would lead to a crash in the pound and he placed his bet with this in mind. Both men made lots of money going against everyone else.

And now in 2022, when it turns out that the implosion crypto platform FTX is actually bigger than the Enron scandal and will cost a lot of celebrities a lot of money, the question arises: had no one warned about FTX?

Well, there was at least one person who did. A video interview in which he clearly warned that FTX was a pyramid scheme about a month and a half before Sam Bankman-Fried’s platform imploded has been going viral for several days.

Advertentie.

Nothing made sense

Marc Cohodes is a trader who shorts companies he believes to be fraudulent. In other words, he makes a lot of money if the company he bet against eventually goes bankrupt. A video interview from a month and a half ago explaining why he thought FTX, the giant crypto platform that went bankrupt last week, was a fraudulent company, exposes some of the details of his logic.

When you hear of a 30-year-old guy with $10 or $11 billion, you pay attention, because most people like that, in my mind, are special, right? says Marc. So when I started paying attention to this guy, he said a lot of words, but nothing made any sense.

According to Marc, he was doubting Bankman-Fried’s story about buying and selling Bitcoin in Japan and the US. The origin story of Sam Bankman-Fried’s wealth goes like this:

SBF saw that it was cheaper to buy Bitcoin in the US and sell it in Japan. But there is a problem with that story says Marc Cohodes:

Where’d you get the couple hundred million to do this trade, which is a complex trade?

An that’s when he knew:

Nothing here fits. Everything reads like it’s a complete scam. This thing is dirty and rotten to the core. I did this one specifically for society, to get this horrifically bad thing off the planet.