Finance & Economics Theories

FTX, the cryptocurrency exchange founded by Sam Bankman-Fried (SBF), secretly transferred billions in customer deposits to its affiliated trading firm Alameda Research, which used the funds for investments, loans to executives, and political donations. When Alameda's balance sheet leaked in November 2022, a bank run ensued and FTX collapsed. SBF was convicted on seven counts of fraud and conspiracy in November 2023 and sentenced to 25 years. Testimony from co-conspirators Caroline Ellison and Gary Wang confirmed the Alameda auto-liquidation exemption and the deliberate nature of the commingling.

TerraUSD (UST) was an algorithmic stablecoin designed by Terraform Labs and its CEO Do Kwon. In May 2022, the UST peg collapsed, triggering a "death spiral" that wiped approximately $40 billion in market value within days. The SEC filed fraud charges in February 2023. Do Kwon was arrested in Montenegro in March 2023 and extradited to the United States in 2025. Evidence at trial showed Kwon and colleagues had privately known the stablecoin mechanism was fragile and had concealed its prior near-collapse in May 2021.

Tether Limited, issuer of the USDT stablecoin, claimed for years that each USDT was backed 1:1 by US dollars held in reserve. Investigations by the New York Attorney General (settled February 2021, $18.5M) and the CFTC (settled October 2021, $41M) confirmed that Tether had misrepresented its reserves — backing was at times composed of commercial paper, loans to Bitfinex, and other non-cash assets rather than pure dollar reserves. Tether produces periodic attestations but has never undergone a full independent audit. The stablecoin continues to operate and is the largest by market cap.

Mt. Gox, once the world's largest Bitcoin exchange, collapsed in February 2014 after announcing the loss of approximately 850,000 BTC (then ~$450M; worth billions at later prices). CEO Mark Karpelès initially claimed transaction malleability attacks were responsible. Independent blockchain forensics firm WizSec attributed the losses to systematic key theft beginning in 2011. Karpelès was convicted in March 2019 for data falsification — not theft. Alexander Vinnik, operator of BTC-e (a money laundering exchange), was indicted in 2017 for receiving proceeds of the Mt. Gox theft. The true mechanism remains partially contested.

Silicon Valley Bank (SVB) collapsed on 10 March 2023 in the second-largest US bank failure in history. Conspiracy claims attributed the failure to coordinated short-selling campaigns or deliberate destabilisation by financial actors. Federal Reserve, FDIC, and congressional investigations attributed the collapse to SVB's concentration of approximately $91 billion in long-duration mortgage-backed securities purchased at near-zero interest rates, which lost market value as rates rose. When SVB announced a $1.8 billion realised loss from selling securities on 9 March, a Twitter-accelerated bank run ensued. Short-seller conspiracy claims are unsupported.

In June 2020, Klaus Schwab and the World Economic Forum (WEF) published "The Great Reset" agenda — a real document proposing a COVID-19 recovery framework centred on sustainability, stakeholder capitalism, and digital infrastructure. The conspiracy framing holds that "The Great Reset" is a coordinated globalist plan for world takeover, secretly being implemented by governments and corporations in concert with the WEF. What is true: the document and agenda exist, WEF does convene world leaders and executives at Davos, and specific policy proposals within it (central bank digital currencies, digital ID frameworks, ESG disclosure mandates) are active real-world policy debates. What is not supported: the existence of a secret implementation timeline, the claim that governments are covertly executing a WEF master plan, or that Schwab secretly controls heads of state. The ADL has documented that some variants of the WEF conspiracy invoke antisemitic-adjacent framings around Schwab's identity.

Claims that private equity ownership degrades hospital care, sometimes inflated into total health-system control narratives.

Claims that FedNow is a CBDC or religious control system tied to mark-of-the-beast narratives.

Claims that BRICS currency launches or summit dates will abruptly end the U.S. dollar.

Claims that ESG investing is a secret social-credit system that will directly control individual purchases.

Claims that cashless payments or central bank digital currencies are designed to surveil, freeze, or socially score all citizens.

Claims that BlackRock secretly owns or controls all major companies, governments, media, and housing markets.

Claims that George Soros personally controls protests, prosecutors, migration, currency crises, or global politics through a hidden command structure.

Claims that World Economic Forum planning language proves a coordinated depopulation or world-government program.

Claims that Coca-Cola intentionally launched New Coke to revive demand for classic Coke or switch sweeteners.

Wirecard AG, a German fintech (payments processing) once valued at €24B, collapsed in June 2020 after admitting that €1.9B in reported assets "probably did not exist." Multi-year accounting fraud involving forged trust accounts in the Philippines and Singapore.

The 2008 financial crisis response — the $700B TARP, $182B AIG bailout, and Federal Reserve emergency lending — is subject to confirmed and contested claims: bank executives knew of subprime risk and profited anyway; "too big to fail" was institutionalized; regulatory capture was documented.