FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show

Post by Nursie » Tue, Nov 08, 2022, 4:38 PM UTC

joyfylbanana wrote: post #102

Nursie wrote: post #90

Earlier quoted context omitted.

I think that “should” is working really hard there. We only have to look at the other crypto firms that have gone bust to know this space is rife with problems in that area - lies about FDIC protection, cryptocurrency and tokens considered part of company assets and subject to creditor claims, rather than customer deposits etc. I wouldn’t like to rely on that “should”.

> I wouldn’t like to rely on that “should”. And you don't have to. Best always to hold your own coins yourself if you have that possibility, or use a custodian you trust.

Post by paganel » Tue, Nov 08, 2022, 4:45 PM UTC

ta988 wrote: post #37

janmo wrote: post #3

4 days ago there was an interesting discussion here about a possible Alameda/FTX bankruptcy: https://news.ycombinator.com/item?id=33464494

And I love how you have self-professed specialists that tell you "no this will never happen". Finance is full of over-confident people that don't know enough or have too much at stake.

Post by Scoundreller » Tue, Nov 08, 2022, 4:54 PM UTC

joyfylbanana wrote: post #64

Scoundreller wrote: post #36

Earlier quoted context omitted.

I’m still trying to decide if stopping withdrawals is smoke, or is the fire.

It is fairly common for exchanges to have (short) pauses in withdrawals. The majority of funds are in a cold storage, and for security reasons it usually takes some time to get the funds out from there "live". If lot of people are withdrawing at once, it would cause minor inconvenience to any exchange. They have to transfer funds from cold storage, and that takes time. It is almost impossible to determine if an excha…

Post by fredoliveira » Tue, Nov 08, 2022, 5:10 PM UTC

nroets wrote: post #114

Nursie wrote: post #90

Earlier quoted context omitted.

I think that “should” is working really hard there. We only have to look at the other crypto firms that have gone bust to know this space is rife with problems in that area - lies about FDIC protection, cryptocurrency and tokens considered part of company assets and subject to creditor claims, rather than customer deposits etc. I wouldn’t like to rely on that “should”.

Ftx is quite profitable: Good fee income with little marketing expense. So it has a large intangible value. I assume most traders on ftx only put enough capital on the exchange to keep their positions open in the short term. So the intangible value of ftx may well exceed the value of clients assets by a significant margin. Then ftx may well be able to issue new shares should it experience a liquidity crunch.

Post by amluto » Tue, Nov 08, 2022, 5:20 PM UTC

kobalsky wrote: post #79

janmo wrote: post #24

Earlier quoted context omitted.

Well it has been 4 hours now, and the media has been reporting it for an hour, everyone on Twitter and Reddit is talking about it. Yet, no communication from FTX or SBF.

> Yet, no communication from FTX or SBF. this is the biggest issue. if they are having any kind of technical issues they should be on top of it. even if everything is fine by tomorrow and withdrawals are working again, this radio silence is unprofessional and at this point it feels like they are trying to avoid saying anything that will be held up in court against them.