Crypto FTX Platform Scandal; Too many players ruined

Last Bet FTX Crypto

It’s not going well for many poker players who lost almost all their fortunes after the collapse of crypto platform FTX a few days ago, against a background of scams reminiscent of the dark history of Ultimate betting.

The recent crash of the cryptocurrency caused by the lack of liquidity of the trading platform FTX is wreaking havoc in the poker world, with players reporting massive losses and comparing them to scandals online poker from more than ten years ago.

More shockingly, an investigation by Internet investigators revealed that an FTX executive, Daniel Friedbergis directly related to the scandal of superusers Final bet in 2008in which online poker players were defrauded of $50 million by the owner of UB Russ Hamilton.

Clash follows a recent report from CoinDesk showing that the trading and investment company Alameda Research It “had its finances deeply intertwined with those of FTX” and “held a disproportionate amount of its balance sheet in FTX’s trading token, FTT.”

According to CoinDesk“when documents showed that Alameda had borrowed millions of dollars from FTT, rumors spread on Twitter that FTX was lending user funds to Alameda and using its illiquid FTT token as collateral – essentially creating money to be able to lend user funds to each. other.”

Another cryptocurrency market, Binanceoffered to buy FTX on Tuesday, November 8th, but the deal fell into the water On Wednesday, due to the concerns of Binance executives.

As a result of all this, The FTT sign dipped from $22 to less than $5, an 80% drop for a loss of over $2 billion in value.

The FTX executive was Ultimate Bet’s lawyer

As the FTX crash erupted, Twitter users noted that Friedberg, FTX’s chief regulator, according to LinkedIn, had been a prominent lawyer for UB and had been actively involved in efforts to cover up the superuser scandal. Never a very good sign…

Daniel Friedberg
Daniel Friedberg

A secretly recorded conversation in 2008, of which audio was discovered in 2013revealed that Friedberg, Hamilton and others were discussing the “God Mode” software being used to cheat and talking about ways to cover up the scandal.

“He was one of many leaders who tried to cover up the scandal when they could no longer hide it,” he said. Todd Witteles e Poker cheat warning in one 30 minute segment in Friedberg and FTX. “There was indisputable evidence that fraud was going on over a long period of time at UB, and they were basically trying to figure out what to do and how to get away with paying the players as little money as possible.”

It turns out the crypto page CoinGeek reported connections between Friedberg and UB in August 2021.

Comparisons to the Fall of Full Tilt

Many poker players were also quick to compare the FTX controversy to the fall of the Full Tilt Poker ten years ago, when it was discovered that the leading online poker site had not segregated player funds and operational funds and therefore could not pay its players after Black Friday.

“10 years ago, many of my friends logged into their favorite poker sites to find that the US Department of Justice had seized their net worth,” said posted on Twitter Melissa Burr. “Fast forward to today, various friends are leaving for a bigger company and for more money.”

“Full Tilt Poker Memories”, has written posted on Twitter Adam “Roothlus” Levy. “Poker players don’t have to deal with customer funds and neither do cryptojackers.”

Some Pro Players destroyed

The FTX debacle has particularly affected several players in the poker world, including Alex Wise. The ex-poker-pro-turned-crypto-trader had his “entire net worth on FTX” crash this week to end up in a multi-million dollar loss.

Wice, a Canadian with $671,443 in live earnings Hendon Mob– reported , may have been affected by the FTX crash more than anyone in poker. In February, Wice said Outlook India Magazine that he had traded over $1 billion in volume on FTX in less than a month.

Alex Wise
Alex Wise

“Don’t you have a few million dollars?” someone asked on Twitter when Wice tweeted after the clash that he was “looking for opportunities”.

“There was,” Wice replied.

Another former poker pro who turned into crypto, Doug Polktweeted at Wice to say he was “happy to stack it back up in $100 tournaments like the good old days.”

Wice responded with an image from the filmrounding Where Mike McDermott drives his truck after taking it “out of the hole”. Teddy KGB.

But Wice is not giving up and said it may return to another crypto platform, Solanato recover its losses.

“At the end of the day, I think Solana is a legitimate project and so I would consider picking up the remaining pieces for the right price when all is said and done.” he tweeted.

A return to the poker tables seems unlikely, as Wice’s last live cash was in 2011.

PokerNews contacted Wice for additional details about his FTX losses, but did not receive a response.

Wice isn’t the only poker player affected by the FTX crash. french Karl Chappe-Gatiena merchant who earlier this year won a short deck tournament worth $40,000 to Triton Mediterranean Poker Party for $565,000, said on Nov. 11 that he had “lost 35% of my total net worth as my capital was spread across multiple countries.”

“I keep getting calls from all over so here goes,” he tweeted. “I didn’t go out […] I set myself to 0 in my mind and move on. Outside of the money, I feel betrayed by (FTX founder) Sam (Bankman-Fried) and I can’t imagine how FTX employees feel.”

Mr. Chappe-Gatien, who has $2.6 million according to Hendon Mob EARNINGSall won at the September Triton Festival, then tweeted that he was “with the Triton family, it feels good to be with real risk takers and such great people behind this madness”.

The founder of SnapShove Max Silver pointed out that “with this crap from FTX, there will be a lot of people (who) will have a large percentage of their net worth stuck in a very precarious situation” and offered his sympathies to the affected poker players.

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Gaelle Jaudon

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