After graduating from the University of Southern California in 2017, Tiffany Fong started several e-commerce businesses, earning passive income while traveling the world.\u00a0She recently spoke with The Epoch Times about how she lost a lot of money investing in cryptocurrencies, which prompted her to become involved in exposing scandals in the crypto sector such as the FTX<\/a> debacle.<\/p>\n Fong\u2019s introduction to cryptos began early on, when a family member gifted her several Bitcoins in 2011. Still in high school at the time, Fong did not think much of the gift.<\/p>\n By the end of 2011, Bitcoin was worth a mere $4.25. Fong still owns some of the tokens today. The price of Bitcoin peaked at over $68,000<\/a> in November last year. Since then, it has fallen dramatically, and is now trading at a little more than $17,000.<\/p>\n During the crypto bull market of 2017, Fong became more interested in the asset class and its underlying philosophy: freedom from state-issued currencies and the ability to transact with whomever one chooses. After a couple years of crypto-hiatus, Fong began investing more heavily during the bull run of 2021.<\/p>\n Expanding on her initial Bitcoin holdings, Fong became interested in the decentralized lending platform Celsius. The project\u2019s founder, Alex Mashinsky, would frequently make the rounds on financial media to tout the returns that Celsius users were earning, promising<\/a> annual returns as high as 18 percent.<\/p>\n These returns were achievable for a time, but nothing lasts forever.<\/p>\n Rising interest rates and a crypto bear market quickly exposed the Celsius network as insolvent, forcing a withdrawal freeze<\/a> in June and bankruptcy<\/a> filing in July. Fong personally lost $250,000 she had stored on the platform, she said.<\/p>\n Motivated by her loss, Fong embarked on a mission to uncover what happened. With only a couple hundred followers at the time, she took to YouTube and Twitter to share her investigations.<\/p>\n After seeing her work on social media, several Celsius employees sent her confidential recordings of Mashinsky speaking at internal meetings. Fong then secured a notable milestone in her journalistic career by publishing<\/a> the leaked recordings with The New York Times.<\/p>\n Fong\u2019s entry into crypto reporting caught the attention of then-FTX CEO Sam Bankman-Fried, who began following her work to stay updated on the Celsius situation. The two messaged on Twitter and occasionally kept in touch, according to Fong.<\/p>\n This relationship would prove fortuitous for Fong\u2019s continued coverage of the crypto space.<\/p>\n In early November, as FTX underwent<\/a> a Celsius-like series of events, freezing customer assets and filing for Chapter 11 bankruptcy, Fong reached out to Bankman-Fried. His reputation tarnished and his company in ruins, she did not expect a response from the fallen founder.<\/p>\n Nevertheless, he granted Fong an interview that would reveal numerous unknowns about the collapsed exchange and provide an interesting look into Bankman-Fried\u2019s character. During their conversation<\/a>, the FTX founder claimed that he donated equal amounts to both political parties and confessed to lying about Bahamian regulators\u2019 involvement in key FTX decisions.<\/p>\n Fong told The Epoch Times that she was uncertain whether she could trust the answers provided by Bankman-Fried. \u201cThere were some questions I asked him where I did feel he was very clearly being evasive,\u201d she said, later adding that his elusive behavior was intriguing in itself.<\/p>\n During their November conversation, Fong asked Bankman-Fried about the alleged<\/a> \u201cback door,\u201d which would have allowed client funds to be siphoned from FTX to its sister company, Alameda Research. He claimed that he is not well-versed in computer programming and, therefore, could not create such a tool, which Fong said she found to be an intentionally imprecise answer.<\/p>\n At the time of the interview, Fong believed the founder was genuinely remorseful, but mentioned her faith has faded over time. \u201cMy views have changed the more he\u2019s talked,\u201d she said, referring to Bankman-Fried\u2019s subsequent appearances in mainstream media, including the New York Times\u2019s DealBook Summit, his sit-down<\/a> with Good Morning America, and his numerous discussions<\/a> on Twitter Spaces.<\/p>\n \u201cOn our last call, he did mention that he would be ramping up communication soon, but I did not expect it to this degree,\u201d Fong said, surprised by the scope of Bankman-Fried\u2019s public relations campaign.<\/p>\n \u201cIt was fun being the first stop on [Bankman-Fried\u2019s] apology tour,\u201d Fong jokingly wrote in a\u00a0tweet<\/a> on Dec. 7.<\/p>\n Fong\u2019s success as an independent reporter and brief experience working with legacy media has given her insights into the advantages of the former over the latter.<\/p>\n After breaking a couple of stories while working with traditional media outlets such as The New York Times, CNBC, and others, Fong realized that citizen journalists have the advantage of being able to post news more quickly and circumvent some of the limitations and editorial guidelines of larger outlets.<\/p>\n \u201cFor example, when I received audio of Celsius Network\u2019s internal all hands meeting which clearly featured Alex Mashinsky\u2019s voice, I could have posted it immediately on my own,\u201d she said.<\/p>\n However, Fong acknowledged that legacy media have superior processes and resources in place for verifying authenticity of sources and claims, though these processes create inefficiencies. \u201cWhile this ensures credibility, it also slows down the process of sharing news in real time which is possible for anyone now via Twitter, YouTube, etc.\u201d<\/p>\n \u201cIn crypto particularly, collapses can occur quickly\u2014in a matter of days or even hours\u2014so I feel being able to share information in real time is crucial.\u201d<\/p>\nBankman-Fried<\/h2>\n
Independent Journalist<\/h2>\n
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