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

Post by crystaln » Sat, Nov 12, 2022, 4:45 AM UTC

Alupis wrote: post #422

faefox wrote: post #87

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?

For someone that only dabbles in crypto - what are the reasons people choose to use high-risk exchanges like FTX, and buy even higher risk "sh*t coins" on them? Especially the exchange-created-and-owned coins - of which I have yet to see one actually do what it promised. Is Coinbase just not cool anymore, or is there some advantage to using exchanges like FTX until they go belly-up?

Post by xeromal » Sat, Nov 12, 2022, 4:53 AM UTC

imdsm wrote: post #698

Animats wrote: post #389

"Voluntary Chapter 11" in Delaware. Figures. That gets them out from bankruptcy in the Bahamas, which is much tougher than US law. The Bahamas still has classic tough bankruptcy laws, where there's no debtor-in-possession reorganization. It's straight to liquidation, with a court-appointed receiver in charge. This should be, and may be, converted to a straight liquidation. Chapter 11 can be useful for restarting comp…

Withdrawals halted yet one of the FTX hot wallets had hundreds of thousands of BUSD and USDC going out earlier today.

Post by SturgeonsLaw » Sat, Nov 12, 2022, 5:09 AM UTC

alasdair_ wrote: post #944

Flatcircle wrote: post #916

I’d encourage you to listen to the odd lots podcast where Sam gets lost in the explanation of what crypto does and his soon to be famous hypothetical “x coin,” and the “box” it uses to derive value from it. Begins at about the 24 min mark https://open.spotify.com/episode/2SXncXpdjwH6WIxhM2V9zZ?si=D...

"I'm in the Ponzi business and it's pretty good" was fantastic.

Post by fortran77 » Sat, Nov 12, 2022, 5:18 AM UTC

Post by naijaboiler » Sat, Nov 12, 2022, 5:49 AM UTC

SantalBlush wrote: post #248

throwaway0asd wrote: post #121

Where were the adults in any of this and why would people throw billions of dollars at unqualified children?

>why would people throw billions of dollars at unqualified children? Because investors had too much cash and became increasingly desperate to earn a return on it. When they have an abundance of cash, they become wreckless and wasteful with their investing as they chase profits.