Does anyone know what the state of fintech is now? Haven’t heard much about them. There are a lot of companies like chime that received investments but not sure how much they can survive in a downturn
FTX faces potential hack, sees mysterious outflows totaling more than $600M
291–300 of 890 posts
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#292For comparison - a regulated traditional finance entity: On October 31, 2011, MF Global executives admitted that transfer of $700 million from customer accounts to the broker-dealer and a loan of $175 million in customer funds to MF Global's U.K. subsidiary to cover (or mask) liquidity shortfalls at the company occurred on October 28, 2011. https://en.wikipedia.org/wiki/MF_Global
I’m not seeing anything about a hack
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#293Regardless of whether you are pro- or anti- crypto, the collapse of FTX, SBF's bubble bursting in a rather extreme fashion, and now this hack are more nails in the coffin for mainstream support. I am no fan of crypto myself, but it's interesting to think what would have to happen for crypto to burnish its image. Would key people have to voluntarily form some sort of coordinating council and self-regulate? Would they…
This is a Wall Street corruption story. https://twitter.com/wallstreetpro/status/1591167190996504576 Sam, Caroline, and everyone at the top of FTX and Alameda have very close family ties to key power brokers on Wall Street, which is how they were able to run this scam. FTX has also lobbied extensively for harsh regulations on DeFi, which is a key reason that he was hated by people in the cryptocurrency space, and ado…
> This is a Wall Street corruption story.
No, stop trying to spin this. It's a stereotypical crypto story.
> Sam, Caroline, and everyone at the top of FTX and Alameda have very close family ties to key power brokers on Wall Street, which is how they were able to run this scam.
Who was Do Kwon's wall street family tie?
> FTX has also lobbied extensively for harsh regulations on DeFi, which is a key reason that he was hated by people in the cryptocurrency space, and adored by Wall Street.
Centralized exchange lobbies against decentralized exchange, isn't that just business?
> The only reason FTX got caught is because of evidence they left on-chain.
Really? Source? From what I know it was just good old balance sheet (probably an Excel file, even) that got leaked.
> Any other investment fund might have been able to sweep it all under the rug, but since the massive payout from FTX to Alameda was visible for the world to see, the corruption was obvious, and the whole thing collapsed
Utter bull. FTX paid Alameda a long time ago. No one knew this story until 2 days ago because none of this works the way you are talking about.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#294Where are the regulators and enforcers when we actually need them? How is any high up in this institution not arrested yet? What the hell are they doing? Like is this a psyop to destroy crypto? Is this preferential treatment of SBF due to his donations/regulatory capture? Imagine if there was a mass shooter in a crowd of people and they just let him continue firing until he ran out of ammo, that's analogous to what's…
Regulators are like the fire trucking coming after the home burned down. Regulators seem to do a poor at at stopping people from being scammed. Scammers keep coming up with new types of scams that evade regulators, and people keep falling for them.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#295Earlier quoted context omitted.
Lumping diagonally opposed things (centralized coins like FTT or decentralized coins like BTC) under the same category (crypto) is quite misleading. > How long do we have to wait to see crypto working? BTC (on chain) is still working as intended, after all these years.
It's an interesting level of abstraction question. On a fine-grained level, yes, BTC works algorithmically as you have pointed out, and FFT is not the exact same thing as BTC. The question the is whether either of these things work socially / for society. Whether it's accurate or not, I imagine non-experts would regard the difference between BTC and FFT as pretty negligible, perhaps akin to the difference between "so…
The creation, distribution and governance are completely different. The public may not care but in the long run we mow see it matters.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#296There's no way this is a coincidence. This is undoubtedly people who work(ed) at the company and were trusted with private keys trying to get away with some money while they can.
What's weird is, why wasn't the system turned off? They've totally collapsed, filing bankruptcy, and supposedly aren't allowing withdrawals, so what was the point of leaving the system up and vulnerable?
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#297Larry David was right: https://youtu.be/Ut3m9OK1c7Y?t=46
this is some kind of rare triple word score double-reverse irony. I love it.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#298Earlier quoted context omitted.
This isn't a crypto failure. Crypto works. This is a human failure. FTX didn't collapse because of the technology. It collapsed because of human error. The fix is rather simple. If an organization looks like a bank and quacks like a bank; it should be regulated like a bank.
So bank regulation worked in 2008, is was just a human failure? Communism works, it's just human failures? The measure of whether something works is whether it prevents human failure.
Socialism to some extent has been successful in some countries. Sweden is a good example.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#299Earlier quoted context omitted.
> where all of the fraud occurs Might want to look into the rug-pulling with shitcoins, NFTs etc. That is far more insidious since it is targeted at young adults/children by influencers such as Jake Paul, Lil Uzi, David Dobrik etc.
Yes, smart contracts can be programmed to allow terrible human behavior. Banks also have this feature. But... they can also be programmed NOT to allow terrible human behavior. Banks do not have this feature.
> But... they can also be programmed NOT to allow terrible human behavior.
Maybe, if you are a god tier programmer. On a long enough timescale the probability of your crypto project ending up on the rekt.news leaderboard is 1.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#300Earlier quoted context omitted.
The problem is the crypto community’s skepticism of proven financial safeguards. Large financial systems are centralized for a reason and they seem intent on finding out why by hitting every bump in the road at full speed.
What's amusing about your comment is that exchanges are the one centralized part of crypto due to the interfce with fiat and they also tend to be where all of the fraud occurs.
To correct your comment a bit, fraud occurs much more on centralized human-run exchanges that do NOT handle fiat. Handling fiat => licenses => regulation => harder to do fraud and get away with it.