Larry David was right: https://youtu.be/Ut3m9OK1c7Y?t=46
So ironic. the latest comments on the official FTX one are funny https://www.youtube.com/watch?v=BH5-rSxilxo
FTX faces potential hack, sees mysterious outflows totaling more than $600M
321–330 of 890 posts
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#322Earlier 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.
Indeed. Beyond the failure of human greed in the crypto Ponzi schemes, FTX is also a massive regulatory failure. These firms have been allowed to play with people’s money for too long.
I think the new laws and regulations are coming out as we speak. Since it's such a new area they have been slow. The SEC just hired a bunch of new people. They have been busy prosecuting people too.
I also think FTX has been violating plenty of them already from the sounds of it. They probably thought they were being clever, but wouldn't pass the "duck test".
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#323Absolutely bullshit. Fried's parents are helping him build a defense against jail time for breach of fiduciary duty and embezzlement while his team coincidentally gets "hacked". Hacks are quickly becoming strategic fail-safes against corporate incompetence and useful as backroom data sales. The promise of cryptographic currency was that we have the power. These exchanges by design sap that power for a promise that no…
> The promise of cryptographic currency was that we have the power.
As usual, we don’t. The question is, do you want the power to be in a condo in the Bahamas or in a building with the company’s logo on it, within walking distance of the SEC and SDNY?
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#324Deleted - Recent developments proved me wrong.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#325Earlier quoted context omitted.
This isn't crypto. This is a centralized exchange with a centralized website, with centralized databases, that is run and controlled by humans. In fact, if you use a centralized exchange there is no use of blockchain for the most part. There's a literal saying, "Not your keys, not your coins". Only if people would listen.
> There's a literal saying, "Not your keys, not your coins". Doesn't that also legitimatize a hack then? If someone hacks or steals your keys, you can't then turn around and say "but wait, those aren't your keys".
Yes, it does, but some of us actually consider this to be a feature.
The issue with reversibility is that it’s not just reversibility - it’s also the power for the authorities to take your assets from you.
The question isn’t “do you want to be able to get your money back after it was stolen”, it’s really, “do you want the powers that be to be able to decide whose money it is.” We’ve been lucky to live in a world where “yes” is a reasonable answer. But there’s no guarantee that it’ll stay that way. And crypto is insurance against that possible change.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#326Isn’t this just people that live in the Bahamas draining their own accounts (which is still allowed)? Plus, obviously, people who can find a random Bahamas native to KYC their account for them.
I imagine a large chunk of FTX users in the Bahamas are FTX employees, and others associated with the company.
At the very least they would know someone there who is a citizen and could withdraw their funds for them. A loophole was utilized where a Bahamanian FTX user would create an NFT on FTX's NFT marketplace, and the locked user would buy it with the price equal to all of their funds. Then the Bahamanian would withdraw to fiat and take their cut. People probably made dozens of millions in a day taking 50% cuts while laundering people's money out.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#327Earlier 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.
> BTC (on chain) is still working as intended, after all these years. It's certainly working on destroying the planet with its obscene energy requirements.
I am not a fan of "destroying the planet" arguments mainly because anything goes, super ambiguious and not very precise. Buy our razors because cartridge razors are destroying the planet! https://bandisposablerazors.org/
Destroying the planet = Can't question it, can't argue about it, it is the end all of all arguments. How could you ever oppose something that destroys the planet?
They all sound the same: https://en.wikipedia.org/wiki/Greenwashing
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#328To all the people replying that crypto isn't regulated: that's a myth. Exchanges are regulated and keep KYC info of their customers. If the FTX hack is true, then all that KYC info will be sold in the black market. Regulation didn't prevent the hack (or rug-pull?). Self-custody with DeFi does prevent it. It's shocking how some people are for tinkering hardware/software and self-hosting services like Nextcloud, but it…
Selfhosted services are typically entirely self-contained. You access them with clients controlled by you, with devices on your network, and apart from updates from trusted sources of your choice, not exchange with untrusted parties at all. I'm all for decentralised financials but the topic is orders of magnitude harder.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#329What I don't get (well I do, lobbying and inside deals), is why these guys have run so long (especially Tether). Just because crypto is a 'decentralised' wild west opposed to government shouldn't mean they sit outside of the laws around fraud, laundering and deception, especially if they're registered companies. The lack of legal focus, given the obvious illegitimacy of it all is disgraceful and I can't even imagine…
> Just because crypto is a 'decentralised' wild west opposed to government shouldn't mean they sit outside of the laws around fraud, laundering and deception, especially if they're registered companies. Entirely speculation, but something fun I've heard repeated occasionally: If this was "just tech", it could find itself regulated easily. (Though this isn't necessarily the case.) If it's a geopolitical weapon or spy…
Or just the usual story of near senile legislators being decades behind actual developments and just not getting it, and therefore not moving quickly enough.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#330Every time one of these cryptoscams matures I curse my rotten, stupid, brain. If I was smart, I too would be ripping off all of the cryptobros. Instead I dumb and do honest work.
Be glad your mind doesn't tempt you with this crap. You'll pay for it one way or another, and in the end, money doesn't matter beyond a very low point.