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FTX faces potential hack, sees mysterious outflows totaling more than $600M

coindesk.com

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Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#391

Post by kortilla »

sgammon wrote: post #313
px43 wrote: post #270

Earlier quoted context omitted.

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…

Dude, in a world of Lloyd Blankfeins, Kevin O'Leary is a small fish.

Blankfein is worth just over 2x Kevin O’Leary. They aren’t really categorically different.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#392

Post by vishnugupta »

eastbound wrote: post #318
dzink wrote: post #287

Earlier quoted context omitted.

1. Crypto and web3 is so tarnished in consumer minds, it cannot recover. The next big thing in this space needs stay away from those terms like the plague. 2. Energy has become so valuable these days and Crypto tech has become so WASTEFULLY, UNNECESSARILY energy intensive, that the next iteration needs to be as cost efficient and effective as software. Transaction costs need to begin and remain extremely low to none.…

1) To recover, a crypto will probably need to include specs about how the exchange should run. Exchanges have failed 3-4 times, and it seems they’re part of a currency since people keep coming back to them. So there needs to be a system where I keep having control over my coins while they’re in an exchange: ability to withdraw from the exchange, ability to approve a transaction.

All of this is a solved problem in equity exchanges world. Escrows, SPIC etc. No need to reinvent a wheel that was invented after learning from so much of pain.

So regulators either come down heavily on these exchanges or they will let retailers continue to get conned.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#393

Post by lottin »

jamesknelson wrote: post #325
bmitc wrote: post #234

Earlier quoted context omitted.

> 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 wher…

To be clear, "crypto" is just a book that says these individuals own however many tokens. It doesn't guarantee that anyone will abide by what the books says. It doesn't guarantee that nobody will take your real wealth from you by force.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#395

Post by imtringued »

albertopv wrote: post #219
douglaswlance wrote: post #133

Earlier 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.

All crypto currencies are a ponzi scheme. Change my mind.

Take a look at RAI.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#396

Post by ReptileMan »

yalogin wrote: post #242

This whole saga has done irreparable damage to crypto. It will take a lot of time for it to come out of this hole. When there is money involved, and that too this much, there will be conspiracy theories flying around and the regular retail investor will be tough to win back. It will be very interesting to see what happens from here on out. Crypto doesn’t have any uses to begin with, if it’s purely used as pump and du…

Not sure about that. I didn't even knew FTX existed. Alt coins the drama surrounding them are too high volume low impact. But I always thought of crypto as gambling with extra steps. I think that most people in crypto know the ropes by now.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#397

Post by [deleted] »

irusensei wrote: post #380
grumpyprole wrote: post #288

Earlier quoted context omitted.

> 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.

Energy which was paid for. If there is a problem with that then price it accordingly.

[deleted]

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#398

Post by pksebben »

threeseed wrote: post #265
jl2718 wrote: post #200

Earlier quoted context omitted.

A CEX is "like a bank" because it's a human that takes custody of assets, not because it does trades and loans. Smart Contracts, however, can't be regulated the same way that human custodians can, but they are also designed not to be able to do unexpected things.

There have been plenty of examples of Smart Contracts doing unexpected things because all of the myriad of edge cases were not anticipated for. It's one of the reasons the classic financial system works so well because it has the flexibility of manual fail-safes in cases where mistakes have been made. Smart Contracts will never really work unless it has the same.

I don't really have a dog in either kennel, but something about the idea that a human absolutely must be in the control loop for a currency to work feels... not wrong, but maybe "not wrong so far".

We've managed to get computers to do some really batshit stuff. Drive cars, make art, algorithmically trade to a level of success a human could never dream of, etc. I don't know if a solution to the problem of managing the stability of a currency is around the corner, but I'm fairly sure somewhere in the future it exists.

And then, I can't help but think of how just about every disaster we've had in the financial system was a result of the humans with their hands on the economic knobs being knobs themselves. The solutions we provide when in crisis wouldn't be necessary if we didn't have such a strong tendency to drive ourselves off cliffs - not to mention that our current financial system has gotten so complicated I'm not sure there's anyone out there who truly, thoroughly, groks it without being reductive.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#399

Post by JamesianP »

lamontcg wrote: post #342
everfree wrote: post #267

Earlier quoted context omitted.

In a ponzi scheme, there is a fictitious business model that's purported to be turning a profit, and its lack of profit is hidden by secretly using new inflows to pay off old investors. In crypto, none of that is hidden. It's widely known that dollars cashed out by earlier investors come from the coffers of later investors. Since e.g. Bitcoin doesn't deceive people about being a profitable company, it's by definition…

"It can't be a Ponzi because they're honest about it being a scam right up front"

well you have to draw a line somewhere. Call it something else if you want to criticize it. Like a bunch of fools racing towards a cliff.

But if they're honest about something being a scam how can it be a scam? Seems like a paradox.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#400

Post by lottin »

SighMagi wrote: post #75
tfsh wrote: post #2

It's been stated that FTX can access the wallets of their customers [1], I wonder if employees or other bad actors knowing the ship is sinking have decided to - forgive me for the quip - plunder any remaining assets. 1: https://www.coindesk.com/policy/2022/11/10/ftx-violated-its-...

That was my first thought. Not FTX related, but I just got another email from Coinbase reassuring me that they’re not gonna use customer funds without permission. I have in the past moved my shit out of Coinbase wallets because of doubts about that. Honestly though I just want to GTFO of crypto at this point…

Get out, man. Learn investment theory. All you need is a couple of index funds and bonds. Investing isn't supposed to be exciting or make you rich quick.
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