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FTX to file for U.S. bankruptcy, CEO resigns

reuters.com

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Re: FTX to file for U.S. bankruptcy, CEO resigns

#81

Post by mistrial9 »

drumhead wrote: post #53
memish wrote: post #4

The CEO of Alameda said "we tend not to have stop losses... I'm trying to think of a good example of a trade where I've lost a ton of money... I probably don't want to go into specifics with that" https://twitter.com/ApeDurden/status/1590912098871435265 Now how did this place end up managing billions of dollars and SBF the darling of politicians? The picture is starting to come into focus. SBF used customer funds to…

Is this how it always is and has been in Silicon Valley or Tech in the US. Startups started by well connected or well off kids, with backgrounds at elite Universities. Background and connections count for so much in that industry, it makes you wonder how much has been lost or how much potential was lost because people didnt go to the right schools.

no, this is not true. The reality of Silicon Valley since the mid-1970s is an explosive and unpredictable mix of institutional money, their cohorts and practices; defense industry, their cohorts and money (these fit your hypothesis somewhat); dramatic and overlapping physical inventions using silicon parts, the people that build and promote those, their investor and insiders; marketing success more like Hollywood of old, their cohorts and practices; non-USA money and investment systems, their cohorts and practices; international Fortune 500, their cohorts and practices.. and more I am leaving out..

Re: FTX to file for U.S. bankruptcy, CEO resigns

#83

Post by sillysaurusx »

ahelwer wrote: post #60
sillysaurusx wrote: post #36

Earlier quoted context omitted.

That’s the one. Thanks for linking it. Was he in denial? Lying? Clueless? I have no idea at this point. He seemed earnest and genuine, but everything he’s saying is the exact opposite of reality. Maybe he was having an anxiety attack. I had one once, and it completely sucks. It ruins your ability to form logical thoughts. (It’s rare to see someone so powerful be so confidently mistaken. The confidence is the part I’m…

If he comes out the other side massively wealthy, then what was there to be "mistaken" about? You're extending an incredibly generous quantity of sympathy to someone that has absolutely not earned even a little of it. Speculating that he had an anxiety attack! I mean, really.

It’s not really sympathy though. From a game theory perspective, what benefit did he get from saying FTX US wouldn’t be impacted?

It seems like there was negative benefit: not only did it accomplish nothing in practice, but it couldn’t have helped even theoretically.

So when someone does something like that, I can’t help but speculate.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#84

Post by ljlolel »

ldjkfkdsjnv wrote: post #27
memish wrote: post #4

The CEO of Alameda said "we tend not to have stop losses... I'm trying to think of a good example of a trade where I've lost a ton of money... I probably don't want to go into specifics with that" https://twitter.com/ApeDurden/status/1590912098871435265 Now how did this place end up managing billions of dollars and SBF the darling of politicians? The picture is starting to come into focus. SBF used customer funds to…

This is actually generally how finance works though. The whole industry is built on the illusion of superior competence. "Prestige" is a determining factor in someones ability get a job running a hedge fund/financial asset management. Generally they need to have gone to the right school, worked at the right bank, then at the right hedge fund. Each should show a good amount of tenure ( > 3-5 years ). A major asset man…

I saw this at Bridgewater. Hired only ivy league, smart people actually. But their total discretionary control was a tiny % of fund. Hedge funds are mostly marketing. When 2008 financial crisis happened, Dalio was making the big trades in the control room himself on gut feel.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#85

Post by rippercushions »

bhouston wrote: post #61

What of the rumour that Bahamians are allowed to access their funds for legal reasons while everyone else can not? Most of the FTX employees including SBF are based in Bahama? Isn't this just insiders cashing out before creditors/users? https://twitter.com/JasonYanowitz/status/1590800210200256513 https://twitter.com/StackerSatoshi/status/159097223797656780... https://twitter.com/statelayer/status/1590939767205920769…

There are 130 (!) companies in the FTX group, across a whole slew of jurisdictions:

https://i.redd.it/078p4g7m6cz91.jpg

The Chapter 11 filing is for the ones in the US, working out what this means for the rest is going to keep a whole lot of lawyers very busy for years.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#86

Post by ethanbond »

throwaway4good wrote: post #76
memish wrote: post #4

The CEO of Alameda said "we tend not to have stop losses... I'm trying to think of a good example of a trade where I've lost a ton of money... I probably don't want to go into specifics with that" https://twitter.com/ApeDurden/status/1590912098871435265 Now how did this place end up managing billions of dollars and SBF the darling of politicians? The picture is starting to come into focus. SBF used customer funds to…

It is not Theranos 2.0; it is straight up theft to use client funds sitting in an exchange to cover losses in a hedge fund.

Theranos was straight up fraudulent lab reports and a tale of numerous people who should've known better getting duped

Re: FTX to file for U.S. bankruptcy, CEO resigns

#87

Post by faefox »

I've seen some comments saying that this is all delayed fallout from the Luna/Terra collapse last spring, it's just that FTX had the means (its own token that it could pump and move around its own entities) to paper over the hole in its balance sheet until now. Can anyone more familiar with the situation elaborate? How much further will the contagion spread?

Re: FTX to file for U.S. bankruptcy, CEO resigns

#88

Post by hestefisk »

guelo wrote: post #37

Why are they filing in the US? I thought they were Bahamas or Hong Kong besides ftx.us

Group holdings yes, but the US exchange and some of their other acquisitions are in US. It seems to be quite an elaborate cluster of firms that have filed for bankruptcy, which makes me think maybe someone was doing funny stuff with money.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#89

Post by adamsmith143 »

memish wrote: post #4

The CEO of Alameda said "we tend not to have stop losses... I'm trying to think of a good example of a trade where I've lost a ton of money... I probably don't want to go into specifics with that" https://twitter.com/ApeDurden/status/1590912098871435265 Now how did this place end up managing billions of dollars and SBF the darling of politicians? The picture is starting to come into focus. SBF used customer funds to…

It's completely unsurprising that "successful" kids have well connected and successful families.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#90

Post by gjsman-1000 »

yourMaster_666 wrote: post #66

you cannot make up this shit https://www.reddit.com/r/wallstreetbets/comments/ys4lmo/she_... gold

It's funny. Banks are widely perceived as corrupt; and lo and behold, the alternative systems to replace banking have been dragged by their heels through Banking 101.

Edit: Also funny, was the unrelated Matt Damon TV ads about how "Fortune Favors the Brave." Obviously it comes from Caesar, but it was also used in Charles Dickens's Little Dorrit by a character encouraging what later turned out a Ponzi scheme...

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