371–380 of 451 posts
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I'm the last person to defend Holmes, but at least she was trying to produce something. SBF's prison sentence should be at least five times what Holmes gets.
She put people at risk of undetected cancer. SBF accepted money from suckers.
(As I said: not at all a Holmes defender.)
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He's a specialist in bankruptcy and liquidation administration. Essentially the debtors have appointed him to take over and identify what can be sold or salvaged. He gets paid out of whatever funds he can find.
Ah yeah, that makes sense. I’m surprised the debtors assumed control of the company that quickly though. Figured it would take some time to play out
”Debtors” are people that owe money (i.e., here, the FTX family of corps).
This is not a case where the creditors (the people to whom money is owed) are in possession (or even yet identified), though that can happen in bankruptcy.
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FTX wasn't just like Coinbase, they were a better exchange than Coinbase with more products. They just ruined that by using the exchange's money to bail out Alameda's unrelated investments. As far as I can tell if they hadn't done that Alameda would've died and FTX would've just kept being a good exchange.
not sure why this is flagged, some of this analysis is accurates the problem was FTX customer deposits ended up being borrowed by Alameda (using as collateral ftt that was fraudulently created and then loaned to them), if no one did the ftt fraud then who knows what might have happened.
"As far as I can tell if they hadn't done that Alameda would've died and FTX would've just kept being a good exchange."
Read the report from the new FTX CEO, https://www.marketwatch.com/story/this-situation-is-unpreced...
It was a total fucking clown show from top to bottom.
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I wonder if those other reasons simply were the guy's background and pedigree. Silicon Valley is no different than Wall Street in its obsession with having the "right" educational background, having the "right" parents, having the "right" connections and so on. So many doors in corporate hiring can be bypassed with "Went to MIT" and "Stanford parents" and I wonder if they can also be bypassed by founders looking for…
That's at least one strong reason - VCs look at the person as much as the business. Crypto was filled with sleazy car-salesman "investor" types at the time Alameda Research was looking for funding. So when in came someone with a Jane Street background and not a single flashy Ferrari in their driveway, the dam broke on VCs finally being able to pour money into the crypto space on a decent looking founder.
In a separate article Ray also said: “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” And this is the same man who oversaw the liquidation of Enron. "Ray said he had found at FTX international, FTX US and Bankman-Fried’s Alameda Research trading company “compromised systems integrity”, “faulty regulatory o…
I was trying to reason through why somebody would step in as CEO specifically for the bankruptcy. How does he get compensated? I’m assuming it’s not simply a goodwill/hobby thing
Thr bankruptcy court lets the bankrupt entity spend money (woth supervision) on tasks essential to what it needs to do in bankruptcy, including paying employees needed for that worm.
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And this is only after a few days that's he's had to examine the FTX books. There's likely a lot more bodies buried that will take a bit longer to find.
I have my doubts that they actually took time to bury the bodies.
In a separate article Ray also said: “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” And this is the same man who oversaw the liquidation of Enron. "Ray said he had found at FTX international, FTX US and Bankman-Fried’s Alameda Research trading company “compromised systems integrity”, “faulty regulatory o…
"Finally, and critically, the Debtors have made clear to employees and the public that Mr. Bankman-Fried is not employed by the Debtors and does not speak for them. Mr. Bankman-Fried, currently in the Bahamas, continues to make erratic and misleading public statements. Mr. Bankman-Fried, whose connections and financial holdings in the Bahamas remain unclear to me, recently stated to a reporter on Twitter: “F** regula…