FTX is just an exchange right? Any sensible person only puts funds into an exchange that they want to trade. Not your keys, not your crypto.
People are used to banks and treat CEX as such.
FTX faces potential hack, sees mysterious outflows totaling more than $600M
571–580 of 890 posts
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#572Earlier quoted context omitted.
Do banks get hacked very often? They seem to have their security in order. Probably because they would have to reimburse their customers if something went wrong.
When the banks get bankrupt (i.e due overleverage, stealing/using customer's money etc) their customers get nothing back. A such example is MF Global. I'm not going into the whole story why banks and centralised/opaque finance is bad. Now the whole point of crypto was the tech behind it which was supposed to replace banks, exchanges and missuse of your OWN money. It's supposed to be an alternative to the trash financ…
You wrote: >
Another comment already noted that MF Global was not a (commercial/retail) bank. One part of it was a broker-dealer.
Also, in the United States customers of MF Global brokerage were covered by the Securities Investor Protection Corporation (SIPC) which (to quote Wiki): >. Please read more here: https://en.wikipedia.org/wiki/Securities_Investor_Protection...
Even with all of the bad behaviour during MF Global's last days (to quote Wiki again): >
Impressive, considering the extent of fraud at MF Global! Can any collapsed crypto exchange claim the same recovery rate? I doubt it.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#573Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#574Earlier quoted context omitted.
I Dunn if it is fair to include Scientology in that. Other than the amounts of money involved, it clearly is a religion.
I don't understand the modding down. Does someone want to explain why Scientology is different than, say, the major Christian religions? Or Islam?
Here’s my understanding:
In Christianity, god extorts adherence through the revelation that there’s eternal life after death and the threat of eternal damnation as punishment for insubordination. The requirements to enter Heaven are acknowledgment and acceptance of Jesus’ crucifixion as atonement for your transgressions (and possibly repentance).
In Islam, god extorts adherence through the revelation that there’s eternal life after death and the threat of eternal damnation as punishment for insubordination. The requirements to enter Paradise are not explicitly defined (aside possibly through dying in a Jihad) so strict adherence is arguable more crucial than in Christianity.
In Scientology, god extorts adherence by eliciting confessions of past transgressions on videotaped counseling sessions and threatening public exposure for insubordination, among other tactics.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#575Earlier quoted context omitted.
> Ponzi schemes by definition use opaque ledgers. Why? To me a ponzi scheme is where the earlier "investors" get paid out with the money of later "investors". That's it. By that definition it's quite the "decentralized", somewhat stochastic ponzi.
your definition includes stocks. I suppose you might be right that stocks are a ponzi
they weren't back when the reason people bought them were dividends, now the only real exit is if the company goes bankrupt or is purchased. The intervening time is hard to describe as anything other than pure speculation and piling dupes on top of each other
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#576Regardless 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.…
I have never understood what problems crypto/Blockchain/web3 is actually supposed to solve. I know it gained traction during the Libertarian/Austrian economics zeitgeist following the 2008 financial collapse. There was fear that the traditional fiat system was irreparably broken and couldn't be relied on. In reality regulators and central bankers did a pretty solid job (not perfect but they eventually got it right). DeFi was basically saying regulation is impossible to do without corruption so let's make transactions possible and regulation impossible. Not a great idea and now a fully failed experiment. Crypto as an asset class for profit was only ever an emergent property fueled by speculators. Crypto as actual currency is still valuable (mostly for criminals) so it may stay for a while but it's not going to make anyone rich ever again.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#577Earlier quoted context omitted.
> There is a history of people committing crimes or being suspected of doing so in US and running away to Israel and avoiding extradition due to their laws. Did you maybe forgot to mention that those people were Israeli citizens?
can SBF apply for citizenship once he lands there?
He is jewish, I'm wondering if the law of return would apply.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#578> Investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges - unclear facts as other movements not clear. Will share more info as soon as we have it. From FTX's general counsel[1], retweeted by FTX_Official. So that indicates it's not being sold off legitimately under some sort of liquidation proceedings. It could be insiders or it could be hackers. [1] https://twitte…
It’s unfortunate that what started out with altruistic motives, a method for decentralized anonymous asset exchange, is being derailed by opportunists. There was a time where a 51% attack was the biggest concern. All that said, I’m not surprised at where we are today.
> what started out with altruistic motives, [...] is being derailed by opportunists.
See: all human history.
The essential trust anchor will always be transparency that directly affects a person in society. Anonymous money and anonymous power will be exploited.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#579Earlier 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.
People keep saying this, but I don't follow. FTT was a token manufactured out of thin air. Crypto works as a concept, I suppose, but people saying crypto works is like the people that say Agile works. How long do we have to wait to see crypto working? Where are the success stories of crypto? There's a long laundry list of hacks, scams, company failures, "tokenomics", NFTs, on blockchain, etc. Saying crypto works as a…
Its really a viewpoint common to tech workers. They see and solve the technological aspects of a problem while remaining blind to the larger more complex social aspects that remain unsolved, but think the problem is solved.
Here are other examples:
- promising self driving cars (driving is more than a technical activity, it's a social activity. AI is nowhere close to driving the easier technical aspects, much less the more complex social aspects)
- AI is already better than or will replace doctors. As of all doctors do is look at symptoms and up with diagnosis. The social part of medicine is the larger job by far, not diagnosis.
- algorithms can't biased. My AI predicts some function that has some real life impact. That the input data is biased, and therefore the output data is just as biased or even more biased. Well that's not my problem. I only build models, and lines of codes are not biased. But the result of your work is being used in the society to perpetuate bias. It's not okay to remain wilfully oblivious to that.
Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M
#580Earlier quoted context omitted.
But aren't they themselves (FTX) custodians of these funds? In that case, why not turn their services off to protect the keys from being hacked? What you say makes sense once a hack takes place, but how did the hackers get the keys? Or do they use external custodians?
> how did the hackers get the keys? It's most likely an inside job, either by disgruntled employees or SBF himself: "In a subsequent examination, FTX legal and finance teams also learned that Bankman-Fried implemented what the two people described as a "backdoor" in FTX's book-keeping system, which was built using bespoke software. They said the "backdoor" allowed Bankman-Fried to execute commands that could alter th…
That is truly astonishing. How did he think he could get away with it?
I kept wondering how someone who seemed smart, wanted to help others, and admitted that crypto is a Ponzi scheme could end up in crypto. It broke my brain.
Now I see he was a brazen criminal all along and the world makes sense again.