Sam Bankman-Fried, the founder of FTX is allegedly responsible for the Terra Luna crash, which saw its market cap drop from above $40bn to just $500m, resulting in unprecedented losses for investors.
Most retail investors lost their lives savings in the crypto crash, and many more were left with massive debts.
Crypto YouTuber, Bitboy Crypto now alleges that Bankman-Fried, FTX and Alameda Research were responsible for every single crypto crash this year.
Three Arrows Capital (3AC), Voyager Digital a crypto lending platform and Terra Luna.
He also alleges that there was a back door built into FTX so Alameda Research could get access to user funds which was used in low and safe leverage trading. As time went on the too more risks and soon there was a 8 Billion dollar hole in Alameda books which they borrowed from FTX which in turn created a 8 Billion dollar hole in FTXs books.
In an effort to replace that cash FTX shorted Terra Luna and they were able to create quite a windfall.
This is how the whole thing started to unravel and why we had 3 flash crashes this year, one after the other.
What FTX and Sam Bankman-Fried were doing was hunting for these crypto projects with large market caps and shorting them and then creating enough sell pressure to cause a flash crash.
The crypto community was quick to react to Bitboy Crypto’s video, with many calling for Sam Bankman-Fried to be arrested and tried for his alleged crimes.
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