Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

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

reuters.com

Post reply on HN
Print view View original

341–350 of 1001 posts

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

#341

Post by boc »

memish wrote: post #322
tppiotrowski wrote: post #268

I 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…

Here's another guy that was vouching for SBF to get in on the Twitter deal for $5b. Michael Grimes [IBanker at Morgan Stanley]: Do you have 5 minutes to connect on possible meeting tomorrow I believe you will want to take? Elon: Will call in about half an hour Michael: Sam Bankman Fried is why I'm calling https://twitter.com/sbf_ftx/status/1514588820641128452 https://www.vox.com/platform/amp/recode/2021/3/20/22335209…

I'm cackling at idea that even Elon is tired of hearing about the blockchain from crypto nerds... even the ones offering him billions.

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

#342

Post by danans »

nemo44x wrote: post #72

This 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.

> 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.

So people who are barely holding on to the bottom rungs of the (American) middle class, and who are the traditional targets of multi level marketing (and also religious) hucksters?

That doesn't bode well for the argument that the crypto ecosystem isn't a set of scams, regardless of whatever the merits of the underlying technology has.

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

#345

Post by skeeter2020 »

systemicdanna wrote: post #281
triceratops wrote: post #260

Earlier quoted context omitted.

Other than resigning, what more responsibility can someone take for a professional failure?

In some circles resigning from a failed tech venture is not seen as a failure. WeWork CEO resigned and is now promoting a new fully funded company in the same space. FTX CEO has been openly lying about the impact for a long time now, and has mismanaged billions of dollars (of other people's money). Resigning doesn't seem like a reasonable punishment.

Not to get too far off-topic, but WeWork was commercial real estate, Flow is residential:

Andreessen [of Andreessen Horowitz, investors of 350M in a company that's single asset is currently a landing page] positioned the new company as a long-awaited solution to the nation’s “housing crisis.” ... “community-driven, experience-centric service” — to explain how the new startup would “create a system where renters receive the benefits of owners.”

This sounds completely different than WeWork, which had the simple goal of changing the world, one beer-Friday at a time.

The sad part is the AZ money isn't the dumb money in this deal; that will flow in latter.

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

#346

Post by theideaofcoffee »

indigodaddy wrote: post #332

Dumb question, but what happens to stuff like Miami Heat’s FTX Arena etc in situations like this? Should we expect a name change for the arena at some point soon?

I also think this is an interesting question. Coming from a lay person I'd imagine it would remain with that name until the contract is up for renewal. Depending on how the naming deal was structured, the money to do the deal would probably have come from FTX' marketing budget in a lump sum up front (presumably) for a fixed number of years. When that's done, the arena will find another source of funds and give the rights anew.

Edit: here's [0][1] some sources that says FTX ponied up $135M for the name to remain through 2040. Your question still stands, will that name stay even if the organization that has the name doesn't exist or is circling the drain? All depends on the terms of the contract, I guess.

[0] https://www.local10.com/news/local/2021/03/27/nba-still-need...

[1] https://www.cbsnews.com/miami/news/its-official-miami-heat-h...

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

#347

Post by bogomipz »

shapefrog wrote: post #306
prh8 wrote: post #28

Was this another CEO "taking all responsibility" without any actual responsiblity/penalties? Not counting resigning.

I take full responsibility for stealing $10 billion and am stepping down as CEO, it has been a long journey from me having nothing to this point. I am sorry to those that lost some or all of your money. I will no longer take part in the company and will quietly fly away on my private jet to my $50 million home where I will contemplate my next venture.

I'm not sure things will be that smooth for him. It sounds as though both DOJ and SEC are looking into this:

https://ustoday.news/both-the-doj-and-sec-are-investigating-...

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

#348

Post by triceratops »

shockeychap wrote: post #263
triceratops wrote: post #260

Earlier quoted context omitted.

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. https://youtu.be/KZYqL79GDXU?t=1277

Is he supposed to go the nearest federal prison and check himself in?

It's the government's job to prove crimes.

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

#349

Post by skeeter2020 »

Kiro wrote: post #34
prh8 wrote: post #28

Was this another CEO "taking all responsibility" without any actual responsiblity/penalties? Not counting resigning.

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.

When you have a net worth of 16B it's probably pretty easy to make 10's or 100's of millions disappear.

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

#350

Post by anon291 »

hotpotamus wrote: post #232
memish wrote: post #216

Earlier quoted context omitted.

Like Elizabeth Holmes, they are kids of the elite who are well connected and supported at high levels. Further, SBF is one of the biggest political donors and there may be corruption in the SEC. The general counsel of FTX US had served as lead counsel to Chairman Gensler at the CFTC. And then there's this from a congressman yesterday, "@GaryGensler runs to the media while reports to my office allege he was helping SB…

Quoted post unavailable.

Good point. That must mean democrats can do no wrong. /s

This sort of non sequitur is dangerous to democracy.

Post reply on HN