Live data from Hacker News

FTX balance sheet, revealed

ft.com

71–80 of 309 posts

Re: FTX balance sheet, revealed

#71
post #31

What the fresh hell? This isn't even an actual accounting balance sheet. He was trying to convince investors to put billions of dollars of actual money into FTX, and the best he could do is the sketchiest one-page Excel ever, complete with comments like "Hidden, poorly internally labled fiat@ account" (sic) worth 8 billion and warnings about typos ! No wonder CZ got cold feet.

Somehow this same level of sloppiness, disorganization and disrespect was a mark of a great disruptive innovator just two months ago. In the Sequoia profile they greatly admire how Bankman-Fried plays League of Legends while pitching to investors, and takes naps in his office when he’s supposed to be in meetings. How surprised can they realistically act that their genius lost 8 billion dollars in a “hidden, poorly in…

I worked for a fund that lost a lot of money once. It was all legit, nothing shady, just dumb investments gone wrong.

We phoned one of these well known investors to tell them what had happened. By that of course I mean the person in charge of the little piece of the massive fund that was allocated to us.

On the call the guy goes "when I tell my boss in 5 minutes, I'm going to get fired for investing in you". He wasn't wrong.

The thing that shocks me is the due diligence. There's a heck of a lot of things you have to do to get Ontario to invest in your fund. All sorts of documents, double signature statements from banks, meetings where you wear a suit. We'd have lost the investments if we were playing video games, there's no doubt about that. Maybe culture changed but it seems really odd, because part of due diligence is qualitative: does this team seem like serious people?

Re: FTX balance sheet, revealed

#72
post #40

The thing that I always wondered about with FTX (and Binance frankly) is how did they get so big so quickly. What did they have that caused so many people to use _their_ exchange. This is still unexplained and was a major red flag. Usually to grow that big takes many years. Just look at Coinbase.

I don't know about FTX, but Binance has been shady from the very beginning. They got large quickly because they listed all kinds of **coins, had negative trading fee promotions, and in general did lots of shady growth hacking marketing tactics and partnerships. If you wanted to gamble altcoins, those would be on Binance, but not listed on Coinbase. That was many years ago when they started out of course. I'm curious…

I guess it goes to show even in the face of all the scams there remains a massive appetite for [seemingly] legit markets to buy/sell coins. Boggles my mind these idiots can't simply be satisfied to run a profitable, lawful operation.

Re: FTX balance sheet, revealed

#73

The only lesson I learend from this whole debacle is never trust people and organisations you know from the Internet no matter how famous or humble or good they are. Trust the tech. But never the people. Especially for financial advices. Be it Sequoia. Or Yc. PG, Chamath, Mark Cuban ,Balaji or the Collision brothers. Tom Brady or SBF or CZ. Never fucking trust people or organisations. They are all here for their fina…

Funny how my takeaway (as someone completely removed from the action) has been the opposite: don't trust the tech, filter for trustworthy people. Time and time again we are shown that tech is not solving the human problem of greed and malice, and some kinds of tech rather amplify it.

How do you tell that people are trustworthy in the first place?

Re: FTX balance sheet, revealed

#74

Earlier quoted context omitted.

Well it seemed to have worked. The scam kept going until the math stopped working, it wasn't regulators or investigative journalists that brought it down. Advising congress and buying formula 1 ads and sponsoring stadium names gave his scheme a certain unearned legitimacy.

The media is also culpable, because his face was always on it. I never used FTX, but I assumed that it was legit and regulated based upon his appearances on Bloomberg etc. This seems to have been a case of XKCD 978, i.e. lazy journalists. https://xkcd.com/978/

Today's media "journalists" follow whatever gets cameras and eyes on them.

Re: FTX balance sheet, revealed

#75
post #17

The "before this week" column seems to be attempting to draw sympathy by saying "but everything was fine before, seriously!" when in reality it just proved that, even in the best of worlds, they had an extremely optimistic view of the entire crypto ecosystem, including its liquidity. I can't believe they seriously held that much of their total value in their own issued token. That's just preposterous. Imagine if JP M…

He's also being purposefully obtuse about his 2 largest regrets - the "poorly labeled" account and underestimating the size of the withdrawals.

He's still behaving as if having billions of liabilities in real money backed by funny money "assets" is somehow acceptable and everything would have been fine if it wasn't for the "last week".

Re: FTX balance sheet, revealed

#76

Earlier quoted context omitted.

Funny how my takeaway (as someone completely removed from the action) has been the opposite: don't trust the tech, filter for trustworthy people. Time and time again we are shown that tech is not solving the human problem of greed and malice, and some kinds of tech rather amplify it.

How do you tell that people are trustworthy in the first place?

Especially if they got conned? There were plenty of trustworthy people trusting sbf.

Re: FTX balance sheet, revealed

#77

The stories so far (HN items with >100 comments): Tuesday 11/08 129 https://news.ycombinator.com/item?id=33518961 FTX Appears to Have Stopped Processing Withdrawals, On-Chain Data Show (theblock.co) 747 https://news.ycombinator.com/item?id=33520585 Binance to acquire FTX (bloomberg.com) 110 https://news.ycombinator.com/item?id=33523274 FTX Token, FTT down by more than 80% in less than 24 hours (ftx.com) Wednesday 11/…

And if you had an "FTX" alert on HN/Twitter, you'd have seen: Sunday 11/06 1 https://news.ycombinator.com/item?id=33494404 Due to “recent revelation” Binance is liquidating their FTX Token holdings (twitter.com/cz_binance) > Context: Friday 11/04 254 https://news.ycombinator.com/item?id=33464494 Crypto trading firm Alameda Research might be insolvent (dirtybubblemedia.substack.com) -- All in time for: Tuesday 11/07 -…

> "Get Out" vibes for sure.

At that point it was too late.

If a significant number of customers tried to withdraw a few days earlier, FTX would have collapsed a few days earlier.

The mistake was made when giving FTX the money.

Re: FTX balance sheet, revealed

#78

The only lesson I learend from this whole debacle is never trust people and organisations you know from the Internet no matter how famous or humble or good they are. Trust the tech. But never the people. Especially for financial advices. Be it Sequoia. Or Yc. PG, Chamath, Mark Cuban ,Balaji or the Collision brothers. Tom Brady or SBF or CZ. Never fucking trust people or organisations. They are all here for their fina…

Funny how my takeaway (as someone completely removed from the action) has been the opposite: don't trust the tech, filter for trustworthy people. Time and time again we are shown that tech is not solving the human problem of greed and malice, and some kinds of tech rather amplify it.

A dishonest man you can always trust to be dishonest. It’s the honest ones you should watch out for

Re: FTX balance sheet, revealed

#79
post #65

Earlier quoted context omitted.

Hey man, move fast and break things. Professional accounting practices are nothing but “gatekeeping”. Hack the fucking plaaaanet.

The protagonists of Hackers were way more competent than this crew.

Well, obviously. They were the elite.

Re: FTX balance sheet, revealed

#80
post #40

The thing that I always wondered about with FTX (and Binance frankly) is how did they get so big so quickly. What did they have that caused so many people to use _their_ exchange. This is still unexplained and was a major red flag. Usually to grow that big takes many years. Just look at Coinbase.

Close ties to the Biden admin. Sams parents are very close and worked in both the Obama and Clinton admins. Question is will the DNC return the 40 plus million given to them from San Bankman?
Post reply on HN