Sometimes the truth lies in the grey area between black and white. After Mr. Gullible's testimony in front of Congress, we learned that FTX's downfall was black and white.

Until yesterday, there were two massive surprises that I never in a million years would have seen coming. The first dates back to September 17, 1995, on the seventh season premiere episode of The Simpsons. The world's collective brain was blown away when we learned that it was Maggie, the baby, who shot Mr. Burns at the end of season six.

The second revelation I was stunned by predates the Simpsons episode by one year. In 1994, Jim Carrey established his marquee brand as Ace Ventura, Pet Detective. In front of superstar quarterback Dan Marino, Ace reveals that Miami police lieutenant Lois Einhorn is the mentally unstable Dolphins kicker Ray Finkle.

I never saw either of those events coming. But the third event occurred in front of Congress yesterday when Shark Tank hero Mr. Gullible divulged the real reason FTX went down. If you aren't familiar with this testimony, I'll gladly fill you in on the true story of why FTX collapsed.

Who is Mr. Gullible?

Mr. Gullible is a world-renowned investor and self-made millionaire who is an outspoken shark on television's hit program, Shark Tank. But, unfortunately, he got tangled in the mess we know today as FTX and Alameda Research.

While the rest of the world was trying to piece together what occurred in the Bahamas under the guidance of Sam Bankman Fried (SBF), Mr. Gullible used his connections to SBF and impeccable logic to uncover the real source of FTX's tragic downfall.

Luckily, Mr. Gullible was brave enough to share the truth with Congress and the rest of the world so we can learn who the real culprit is behind this debacle- Changpeng Zhao (CZ), the Binance CEO.

Why you should "trust" Mr. Gullible

Before summarizing Mr. Gullible's conclusions and testimony, it's essential to understand why he is a credible source. First, he's a multi-millionaire. You only become wealthy if you are brilliant and looking out for the collective's best interest.

Second, he is on television. You can't believe everything you read on the internet, but it's pretty safe to believe everything on network television. Watching episodes of Shark Tank, we can surmise Mr. Gullible's logic, wit, and likable personality. His honesty and authoritative demeanor illustrate his raw authenticity.

Finally, Mr. Gullible testified under oath in front of Congress about the $15 million he lost by FTX's cataclysmic downfall. Of course, it was $15 million FTX paid him, but that is primarily semantics. It's not likely that a genius who lost $15 million they were paid to represent a company would have a bias. Right?

The "fake story" you believed.

Buddha famously said, "Three things can not be long hidden: the sun, the moon, and the truth." Yesterday, we learned that Mr. Gullible is our modern-day buddha.

According to Mr. Gullible's testimony, it wasn't the commingling of FTX customers' funds with Alameda Research that sparked the explosion that is FTX.

It wasn't gross mismanagement or negligence by company leadership that caused FTX to crash faster than the Hindenburg.

Risky investment choices and having God-mode status on the FTX exchange didn't play a role in the disintegration of clients' assets.

It wasn't the tens of millions donated to politicians and the "effective altruism" championed by SBF that contributed to the crumbling of the wunderkind's empire.

The questionable Korean accounts concealing Alameda's liabilities don't reflect any shadiness or malpractice on FTX management's part.

SBF's reassuring tweets about funds on FTX being safe didn't mislead investors or give FTX customers false confidence.

There is little possibility that SBF, FTX, or Alameda played a role in the swift destruction of Terra/Luna and UST.

And SBF couldn't have ulterior motives when trying to bail out distressed platforms like Voyager and BlockFi.

The truth, according to Mr. Gullible, is far more sinister. FTX and SBF are victims! Yes. They were taken out by their greedy competitor, who now controls an unregulated monopoly. So let's get to the bottom of this!

The truth, according to Mr. Gullible.

According to Mr. Gullible, the smoking gun is in the hands of the crypto mastermind and Binance CEO Changpeng Zhao. Listen to his opinion.

"In my view, these two behemoths that own the unregulated market together and grow these incredible businesses in terms of growth were at war with each other and one put the other out of business intentionally. Maybe there is nothing wrong with love and war, but Binance is a massive unregulated global monopoly now; they put FTX out of business."

-Kevin O'Leary

So, Mr. Gullible is saying that Binance is the culprit here. And now that Binance has removed their rival “behemoth,” FTX, they get to operate an unregulated global monopoly.

And here I thought that other crypto exchanges like Coinbase, Kraken, Uniswap, Pancakeswap, Sushiswap, Ascendex, Gate.io, Bitfinex, KuCoin, and Huobi were Binance competitors. Clearly, I am wrong because Binance now has a monopoly since FTX is out of the picture.

The detective got on the case.

Mr. Gullible explains step-by-step how Binance victimized SBF and FTX.

You see, Binance had 20% ownership of FTX. SBF shared with Mr. Gullible that he was compelled to spend $2-$3 billion to buy back the shares from CZ. SBF was trying to get regulations in different jurisdictions, and CZ wouldn't comply with the requests, so FTX couldn't get licensed. Apparently, SBF had no choice but to buy out CZ's shares at an extreme valuation stripping FTX of assets on their balance sheet.

The parts Mr. Gullible forgot.

Mr. Gullible never mentions the sky-high FTX valuation probably had something to do with the manipulated assets (FTT token and other Solana-based coins) on its balance sheet. He also conveniently left out the Coindesk article showing the gaping holes in FTX's balance sheet.

Surprisingly, Mr. Gullible did not mention how CZ telegraphed that he would sell his FTT tokens rather than dumping them directly on the market. CZ could have dumped them on the market and gotten more money.

Also, I have yet to hear Mr. Gullible say anything about SBF reaching out to CZ about acquiring FTX. Further, if SBF believed CZ was behind the death blow, why would he reach out to him about acquiring the company?

The problem with Mr. Gullible's skewed testimony

Mr. Gullible's narrative doesn't add up. He is portraying SBF and FTX of being victims. On the contrary, FTX/Alameda Research operated their companies poorly and committed fraud.

Mr. Gullible is mistakenly blaming FTX's rival, Binance, and saying that lack of regulation contributed to the downfall. He is inferring that Congress needs to get out its pitchforks and regulate crypto. The problem is that the government listens to people like Mr. Gullible and SBF, who are motivated by personal gain and receive undeserved credibility.

Worse, the public who may believe things Mr. Gullible says can hear this convoluted version of the truth and draw mistaken conclusions.

Key Takeaways

The SBF/FTX/Alameda circus is only beginning. Unfortunately, it gives the entire crypto space a black eye and is more of a reason for the public to avoid crypto.

Further, regulators working with the criminal (SBF) now have a whole arsenal of reasons to place draconian restrictions and regulations on crypto.

Mr. Gullible paints a weak argument for what occurred with FTX. Hopefully, Congress sees through the holes in his story and understands it is merely his opinion. And he was paid $15 million for his opinion by FTX.

What do you think? Is there truth behind Mr. Gullible's argument that Binance is to blame for FTX's downfall? Are SBF and FTX the actual victims? Is Mr. Gullible trying to create an angle to help out his buddy SBF or somehow to gain access to his $15 million? Let everyone know what you think in the responses.

This article isn't financial advice, and I am not a financial advisor. It is strictly my opinion. Crypto assets involve tremendous risks. I am someone who wants to maintain and grow my wealth so that I can provide a good livelihood for my family and myself. So do your research before making any investments.