Larry David made a very good prediction for this week’s cryptocurrency crash.
In a Super Bowl ad for the FTX cryptocurrency exchange in February, Larry David sarcastically predicted that FTX would not succeed. The ad shows David’s character throughout history, negating man’s greatest inventions, including the wheel, the light bulb, coffee and democracy.
At the end of the ad, David learns about FTX, “a safe and easy way to get into crypto.” David dismissively says, “Well, I don’t think so. I’ve never been wrong about it — ever .”
“Don’t be like Larry,” the FTX commercial ends.
FTX filed for bankruptcy proceedings in the United States on Friday, marking the stunning downfall of one of the largest and most powerful players in the crypto industry. CEO of exchange founder Sam Bankman-Fried, 30, resigns.
Rival Binance had said it would explore a rescue plan for FTX earlier this week, but withdrew it almost immediately after the company said FTX was largely unsalvageable.
The full extent of FTX’s financial problems is unclear, but multiple reports say the company is facing an $8 billion funding shortfall. Bankman-Fried reportedly told investors on Thursday that the company would face bankruptcy without a quick infusion of equity.
Despite FTX’s reputation as a reliable, low-risk investment portal, its business appears to be based on complex, highly risky leveraged trading.
Customers deposit funds for cryptocurrency transactions. But instead, FTX appears to have taken billions of dollars worth of that money and lent it to its sister company, Alameda, to fund those risky bets, according to The Wall Street Journal.
Chief executive Sam Bankman-Fried resigned on Friday. He was one of the voices of the cryptocurrency industry and once amassed a fortune totaling $25 billion, but has since disappeared. He is seen as the white knight of the crypto world, stepping in to save the struggling company earlier this year. Backed by elite investors such as BlackRock and Sequoia Capital, FTX quickly became one of the largest cryptocurrency exchanges in the world.
Regulators are now investigating what went wrong, and some lawmakers have called for a crackdown.
– CNN Business’ Matt Egan contributed to this report.