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What he did is already illegal.
Of course. Point is that regulatory oversight FEC/whatever would have likely seen issues with the books, and a definitely issue with that the CEO could just take all the moneys.
To the ones who are saying this is a failure of crypto currencies. FTX was a regulated exchange, so your alternative to crypto currencies is then broken as well, the regulators didn't then do their job, this scammer Sam Bankman-Fried was allowed to create fake money out of thin air and the regulators were not able to stop them. If you can't follow the mantra "not your keys not your crypto currencies" or if you don't…
Given this, the fact that some of you believe that this is a flaw in blockchain technology worries me because: either you just hate (stupid position, it's like hating toasters) and you're taking pleasure in other people's misery or you really don't know what blockchain is and you don't understand the value it can add.
The saddest? That tomorrow another Ivy League graduate with trouble understanding a Ponzi scheme will go to a VC and be given millions to create nothing.
This is a story of a corrupt CEO. The main crypto part of it is that FTT was seen as actual money on its balance sheets. This individual stealing people's money sheds light on how regulations exist for a reason, especially when handling billions of USD. Doesn't really speak positively or poorly on cryptocurrency as a technology though.
The main crypto part is that it's the person who dictated the upcoming crypto exchange legislation.
That corrupt CEO was greasing politicians (to the tune of $40m), was using an ex-CFTC commissioner to lobby a law regulating exchanges (which, by chance, would have made FTX legal and Binance and decentralized exchanges illegal) --ex-CFTC commissioner who just deleted his Twitter account by the way--, had nomimated has CEO of his Alameda Research fund the daughter of a colleague of the SEC's chair, etc.
Here what a US congressman has to say about the SEC's chair:
Interesting. @GaryGensler runs to the media while reports to my office allege he was helping SBF and FTX work on legal loopholes to obtain a regulatory monopoly. We're looking into this.
Interesting indeed.
There's much more to this story than: "we fucked up using leverage so we used a shitcoin of our creation as collateral to hide billions in losses".
We're potentially talking about a little cabal trying to regulatory capture the cryptocurrency exchange market very likely with the intent to run an ever bigger scam.
I am glad that most of HN had called this crypto/NFT/web3.0/ICO BS loong time ago. That contrasts with Mega VCs, celebrities, politicians etc who were praising this tech-glorified Ponzi scheme. Good job to us!
I am glad that most of HN had called this crypto/NFT/web3.0/ICO BS loong time ago. That contrasts with Mega VCs, celebrities, politicians etc who were praising this tech-glorified Ponzi scheme. Good job to us!
This is a story of a corrupt CEO. The main crypto part of it is that FTT was seen as actual money on its balance sheets. This individual stealing people's money sheds light on how regulations exist for a reason, especially when handling billions of USD. Doesn't really speak positively or poorly on cryptocurrency as a technology though.
Technology doesn't exist in a vacuum though, and the fact that so much of the ecosystem that sprung up around crypto is rotten is a hint that maybe the technology isn't all that useful. Crypto's nominal reason to exist is to have a way to transact without government oversight, but its popularity is due mostly to speculation and outright scams enabled by said lack of oversight.
This has been some of the funniest few days in recent memory. Even my crypto true-believer HODL maximalist friends are questioning the entire ecosystem and its value. I think it’s funny that so many people have been hypnotized by get-rich-quick schemes and promises of a utopian monetary system while forgetting what the original —actual— value proposition of crypto was: Buying heroin. As a corollary to “not your keys…
>> —actual— value proposition of crypto was: Buying heroin. >> “if you can’t confidently exchange it for illegal drugs, it’s not a currency” What?
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This has happened in tradfi more times than anyone can count. Lehman, Enron, Madoff, etc. Far more scams in tradfi.
Hell yeah. If we can't detect all fraud all the time, we shouldn't bother trying to detect any new forms of fraud that emerge.
It's tempting to say he did it or inside job, but things never are as obvious as they seem. Why not just quietly siphon off funds from a cold wallet to his personal wallet? Why use a malicious app at all? This leads me to believe it was not an inside job.
I have no opinion on the inside job, but if someone were to drain the funds I'd expect it to be more deniably than directly transferring to one's own wallet.