Jordan Belfort, also known as the original Wolf of Wall Street, gives his take on what he believes happened behind closed doors at the bankrupt crypto exchange FTX.
In a new Fox Business interview, Belfort says it’s a misconception that FTX is a crypto exchange.
“It’s not an exchange. It’s like a brokerage firm or a bank that held clients’ money, and they actually funneled it. He used it as his own personal piggy bank, Sam Bankman-Fried. People have put their money in FTX because they want to trade, like any brokerage firm. It would be like going to JPMorgan Chase, depositing your money into your Chase bank account and then finding out that actually [JPMorgan CEO] Jamie Dimon takes your money personally and goes to Las Vegas and gamble on the weekends because your money, his money – what’s the difference?
That was what actually happened. He used all this money that people deposited into the brokerage firm FTX and used it as his own personal piggy bank. They bought apartments, whatever else they bought. They were betting on wild derivatives trading, so they took it to the extreme. It had to end badly.”
As for whether FTX investors will ever get their money back, Belfort says it’s unlikely the company will cure everyone.
“I highly doubt there is much money here to get back. If you take advantage of the way they profit, it’s very easy to take these huge losses. I don’t think they were very good traders, by the way.”
Belfort concludes that FTX was established to fund Alameda Research, the quantitative trading arm of the crypto exchange.
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