Where's the oversight from the SEC?
FTX is a bahamian company. SEC doesn't have jurisdiction.
FTX to file for U.S. bankruptcy, CEO resigns
261–270 of 1001 posts
Re: FTX to file for U.S. bankruptcy, CEO resigns
#262Curiously I was able to pull out all of my Eth / Eth tokens from FTX.US but not chainlink?
Withdrawals were requested at the same time two days ago, glad I remembered I had some coins sitting around in those accts.
Re: FTX to file for U.S. bankruptcy, CEO resigns
#263Was this another CEO "taking all responsibility" without any actual responsiblity/penalties? Not counting resigning.
Other than resigning, what more responsibility can someone take for a professional failure?
In this case, jail.
He openly talked about how the whole thing was a Ponzi scheme.
Re: FTX to file for U.S. bankruptcy, CEO resigns
#264This whole thing is just the .com crash all over again. Super Bowl ad’s the same year of the crash even. I happened to be at a hotel earlier this year that was hosting a crypto conference and the attendees looked like the kinds of people a multi-level marketing scheme attracts. Very different from a few years ago.
You must not have been following cryptocurrency for that long. This sort of thing happens every 2-3 years. This isn't a wild, unforseen crazy market calamity, this is your run of the mill downturn, this ones mild so far actually. You're only hearing more "bloodbath" talk because the news covers it nowadays, and the news loves to exaggerate bad things and make them sound worse because that's how they keep the lights on.
Re: FTX to file for U.S. bankruptcy, CEO resigns
#265Earlier quoted context omitted.
"The FTX-Alameda nexus" https://www.coppolacomment.com/2022/11/the-ftx-alameda-nexus... Excellent explanation. Appears to be confirmed by the WSG "FTX Tapped Into Customer Accounts to Fund Risky Bets, Setting Up Its Downfall" https://archive.ph/nZNmw Original: https://www.wsj.com/amp/articles/ftx-tapped-into-customer-ac...
From the marketwatch article it sounds like this was essentially a hostile attack from Binance, first dumping the token to collapse the price, then pretending to be interested in an acquisition to keep FTX from looking at other emergency measures, then pulling out at the last minute. Compare this to traditional finance with events like the collapse of Lehman, then Bear Stearns, with Morgan Stanley next in line to fal…
Binance triggered the collapse, but the stage was set by FTX/Alameda by "creating its own token" (per "The FTX-Alameda nexus") and "loaning" $10bn to Alameda using their "own created token" as the backing collateral.
Of course, there's a risk that the hedge fund could lose some or all of the customers' funds. And the exchange promises that customers can have their assets back on demand, which could be a trifle problematic if they are locked up in leveraged positions held by the hedge fund. But this is crypto. There's an easy solution. The exchange can issue its own token to replace the customer assets transferred to the hedge fund. The exchange will report customer balances in terms of the assets they have deposited, but what it will actually hold will be its own token. If customers request to withdraw their balances, the exchange will sell its own tokens to obtain the necessary assets - after all, crypto assets, like dollars, are fungible. ["The FTX-Alameda nexus" - emphasis mine]
Re: FTX to file for U.S. bankruptcy, CEO resigns
#266I'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?
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Re: FTX to file for U.S. bankruptcy, CEO resigns
#267Is this FTX US? Yesterday SBF said FTX US was not impacted by the shitshow: https://twitter.com/SBF_FTX/status/1590709195892195329
SBF's announcement of Chapter 11 proceedings today explicitly includes FTX US: https://twitter.com/SBF_FTX/status/1591089317300293636
If only I had a FTX US account. I'd get one more day of GTFO...
Re: FTX to file for U.S. bankruptcy, CEO resigns
#268I still can't reconcile how fast this happened. Back in April SBF was willing to give billions to buy Twitter. It seemed like there was plenty of surplus or was the money he planned to invest just FTX customer holdings?
"Musk responded to the text by asking if Bankman-Fried had “huge amounts of money?” MacAskill said SBF was worth about US$24 billion at the time and could be willing to provide as much as US$8 billion to US$15 billion in financing." [1]
[1] https://forkast.news/sbf-wanted-to-join-elon-musk-twitter-de...
Re: FTX to file for U.S. bankruptcy, CEO resigns
#269Where were the adults in any of this and why would people throw billions of dollars at unqualified children?
Because most of the adults know that there is a window when you can get rich off a known con and get out before it blows up with quite a lot of cash.
The best part of these being unqualified children is that they don't even realize that part of the deal they've signed up for is to take the fall when shit finally hits the fan.
There's plenty of people who have made money from SBF behind the scenes, but you'll never hear their names.
Re: FTX to file for U.S. bankruptcy, CEO resigns
#270Earlier quoted context omitted.
He already lost his whole net worth overnight ($16B) and will live in hiding with serious death threats for the rest of his life. This is no ordinary CEO switcheroo where the he walks away with a slap on the wrist and a golden handshake.
I am 100% sure he must have siphoned off some sizable part of his net worth in cash or other non-crypto assets.
He will have worked with some accountants and lawyers to move money into untouchable places. There will be someone employed to hold it for him, and dole it out in the future. Sure he will have to keep a low profile, but there will be resources.
He will probably have dispersed quite some sums to friends and family, some of that will come back to him in one way or another.
Finally, he will be able to go on the celebrity speaking circuit for quite a while...