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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

#461

Post by astrange »

notch656a wrote: post #409
astrange wrote: post #339

Earlier quoted context omitted.

FDIC rescuing a bank doesn’t involve money printing. Since the bank still closes and can’t offer new loans, it’s slightly deflationary.

The events of the bank closing may be deflationary. The giving of now-gone money to the depositors is inflationary. The fallacy of your above statement is you're considering the system of 'fail, then FDIC pays out depositors' when in fact the alternative is 'fail, depositors eat losses'. The former is inflationary relative to the latter, and in fact punitive to those who chose banks that didn't fail. The net differen…

No, it doesn't increase the money supply because the FDIC has a pre-existing fund for it. They're not funded by the Treasury and when they are they pay it back.

Though the US could've used more inflation at any point up to 2021 considering our inability to ever get unemployment low enough. (since they're theoretically more or less directly related)

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

#462

Post by isoprophlex »

dools wrote: post #457

dang wants everyone to be thoughtful and curious with our comments. It’s absurd that anyone is still giving crypto anything but derision. It’s like someone posted a flat earth website and dang is like “hey let’s hear them out”. Forget about it.

I emphasize with what you're saying but... then just don't comment, and optionally flag the submission?

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

#463

Post by paranoidrobot »

przeor wrote: post #455
ForHackernews wrote: post #430

Earlier quoted context omitted.

Quoted post unavailable.

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I can't speak for others, but personally my great dislike for it is the very high rate of scam-like behaviour.

Every where you look, it turns out that someone is doing a 'rug pull', using customer funds in ways that don't line up with what they said publicly, or using misleading and deceptive behaviours to con others into giving them money.

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

#464

Post by iamacyborg »

przeor wrote: post #455
ForHackernews wrote: post #430

Earlier quoted context omitted.

Quoted post unavailable.

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People dislike crypto because for many it has become incredibly obvious that it’s nothing more than a vehicle to scam and commit fraud.

Yes, these things happen elsewhere but crypto is perfectly designed to facilitate these bad behaviours.

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

#465

Post by paulgb »

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"

Saying it’s not a Ponzi doesn’t mean everfree is defending it, it’s just useful to have precise definitions about these things.

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

#466

Post by lvl102 »

rvba wrote: post #431
crypt1d wrote: post #420

This last week has been a rollercoaster. I've been in crypto since a long time ago and have seen quite a bit, but this FTX implosion takes the crown. And to be honest, I don't think its over.

What is the difference between this, terraluna earlier this year or MTGox?

SBF was hailed as a crypto savior just a few weeks ago after the Luna fallout. He was viewed as Warren Buffett during the financial crisis. Perhaps Coinbase will be the ultimate winner here if crypto somehow survives. I imagine more than 75-80% of the assets tied to crypto will liquidate in coming weeks. I don’t think this will be “just another” crypto blow up. It’s end game time.

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

#467

Post by paul80808 »

easytiger wrote: post #422
n0tth3dro1ds wrote: post #255

Earlier quoted context omitted.

> It’s unfortunate that what started out with altruistic motives Are you actually buying into SBF’s pathetic ideologies? Or are you more referring to Satoshi’s white paper when you refer to “altruistic motives”. I can’t understand how anyone would take SBF seriously. He’s a smug charlatan who converted funny money to real money so that he could dump it into politics for his own aims, all while calling his actions “al…

Agreed. IN particular, William MacAskill[1] is worth particular interest. Closer to abstract low tier cult than serious philosophy. The fact he changed his name (his real name is William Crouch) to sound more like a marketable philosopher should be indicative enough to anyone with an ounce of sense that one should be guarded engaging with this supposed philosophy. That so many people at FTX called themselves "EAers"…

I hear a lot of critiques around effective altruism that boil down to attacks on people who practice it as being immature, naive, or cult like.

At its core, EA asks what the most effective way to contribute to humanity is. Some of the thinkers are mature and have produced amazing projects, givewell being an obvious example.

There are definitely some weirdos affiliated with the movement, but I don't think that that discredits its approach or philosophy.

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

#468

Post by himinlomax »

dzink wrote: post #287
YossarianFrPrez wrote: post #116

Regardless 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…

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.…

"Web3" was never mainstream, despite the obvious manipulations to try to make it so.

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

#469

Post by iamacyborg »

lottin wrote: post #382
Thorrez wrote: post #248

Earlier quoted context omitted.

If a bank gets hacked, generally the transactions get reversed. If a cryptocurrency exchange gets hacked, that generally can't be reversed. Regulation can make things more secure, but I don't think it can realistically stop all attacks. Regulation is slower than attackers. The ability to reverse transactions is what's really needed to prevent attackers from getting away with money.

Who will be in charge of deciding which transactions need to be reversed and when? It seems to me that the ability to have reversible transactions is at odds with the descentralised nature of blockchains.

Tell that to the folks who forked Ethereum.

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

#470

Post by tinus_hn »

blitzar wrote: post #18
mudrockbestgirl wrote: post #9

Earlier quoted context omitted.

> Reports on crypto Twitter are that this is a hack It's really unfortunate to get "hacked" with such bad timing. You steal customer money and file for bankruptcy but now the bad hackers, probably from the Bahamas as well, take whatever is left and cash out. Oh no! /s But it's alright, SBF said he's sorry.

In unrelated news SBF just found he had a bunch of crypto in his personal wallet. Totally not at all the pile of crypto that was last seen in the FTX wallet.

A minor problem with the blockchain is that the blockchain is actually an authenticated record of all transactions, so it’s pretty hard to hide where the crypto went unless you never actually exchange it or use it to buy something.
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