Cryptocurrency exchange platform FTX recently filed for bankruptcy, costing investors up to $2 billion, after a liquidity crisis that exposed all of former CEO Sam Bankman-Fried's illicit dealings, including his donations to the Democratic Party and its pet causes. His $16 billion fortune has been all but wiped out, and it is estimated that he has a net worth of no more than $100,000. (Related: Democrats SCRAMBLING to hide evidence linking them to former FTX CEO Sam Bankman-Fried.)
In an interview with Tucker Carlson on his Fox News program, "Tucker Carlson Today," Keiser noted that the key to Bankman-Fried's fortunes involved getting investors to believe that the "play money" he created, the crypto asset FTT, was actually very valuable. But in reality, it was worthless.
"This is a whole cryptographic scam that's been going on with the crypto market, where individuals, he's not the only one, there are many people that create these old coins or scam coins … and then they list them on each other's exchange, and then they buy them from each other to create a price and then they use the enhanced price, which is now the collateral value, to go buy something like Sam Bankman-Fried [who] did real estate in the Bahamas. So, it's a Ponzi scheme," Keiser said.
Keiser pointed out that the White House, through Securities and Exchange Commission (SEC) Chair Gary Gensler, who was appointed by President Joe Biden, may also be involved with the FTX scandal.
Gensler reportedly met with Bankman-Fried back in March to discuss the creation of a new cryptocurrency asset trading platform.
Furthermore, Keiser noted that as the head of SEC, Gensler should have been the first to call out Bankman-Fried and FTX regarding its illicit financial activities. "But we find out that he's actually involved and that there's some, what I would call collusion [occurring]," said Keiser.
"And the problem in America is you have a country that is ruled by a kleptocracy," he added. "Every institution in America is tied to Wall Street in some way."
Other reports noted that Gensler may have even been helping Bankman-Fried find legal loopholes for FTX.
Republican Rep. Tom Emmer of Minnesota, known as one of the most crypto-friendly members of the House of Representatives, claimed that his sources told him that Gensler was helping Bankman-Fried and FTX "work on legal loopholes to obtain a regulatory monopoly" and that his office is conducting a more thorough investigation on the matter.
Analysts within the crypto industry believe this support for Bankman-Fried's "regulatory monopoly" is what prompted the tech entrepreneur to donate millions of dollars to the Democratic Party.
"It's not a stretch to imagine [Bankman-Fried] sought to exploit these political ties to his benefit," read one article published in Fortune. "[Now is] a good time for skeptics to ask why [Gensler] failed to stop FTX in the first place – and if anyone else in high places had a role in enabling this debacle."
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Watch this clip from Fox News featuring a former investor of FTX discussing how the crypto exchange's collapse should serve as a "big lesson" for the cryptocurrency community.