FTX used corporate funds to purchase employee homes, new filing shows

Post by kikokikokiko » Fri, Nov 18, 2022, 1:34 AM UTC

spaceman_2020 wrote: post #277

MichaelCollins wrote: post #144

Earlier quoted context omitted.

Tim Draper still supports Elizabeth Holmes: https://fortune.com/2022/01/05/venture-capital-tim-draper-el... I don't know how. Maybe he's just fucking stupid, or too prideful to admit he was wrong.

I'm not entirely familiar with Theranos, but as far as I know, she only defrauded VCs - entities that are designed to take on risk (which can include Theranos-like fraud). FTX defrauded average people, many of whom were lured by the big name ads, the friendships with Tom Brady, the marquee investors list. Supporting that is deeply immoral.

Post by bachmanity1212 » Fri, Nov 18, 2022, 1:43 AM UTC

rippercushions wrote: post #330

lordnacho wrote: post #91

Earlier quoted context omitted.

I've had one of the mentioned firms invest in a place I was a partner at, and it surprises the hell out of me. I remember the investment guy would tell the rest of us "on Wednesday, wear a shirt and tie, X big name is coming" and that's what we'd do. And millions of questions about the strategy, though didn't know much about those details. Current theory is there's some sort of investment U shape curve. Either people…

This is called countersignaling. Basically, if everybody else invests into doing X and somebody conspicuously does not, it's taken as a signal that they're so good that they don't need to. https://en.wikipedia.org/wiki/Countersignaling

Post by tootie » Fri, Nov 18, 2022, 1:46 AM UTC

mstipetic wrote: post #248

bhouston wrote: post #213

Earlier quoted context omitted.

I have a feeling he will come out worse that Elizabeth Holmes because it feels like a complete fraud and pilfering of their client's money for their own spoils. While Elizabeth ran a known fraud she didn't quite pilfer the money to completely enrich themselves like the FTX crew did.

And what will change because of this? Not much, the (VC) grift continues. People don’t want to accept that the VC model works while there’s a qualitative change in technology, which worked in the 2010’s and there hasn’t been any in a while. Maybe the new AI generative models bring something new

Post by eternalban » Fri, Nov 18, 2022, 1:58 AM UTC

ceejayoz wrote: post #284

jmyeet wrote: post #206

Once again I need to poin tout the shocking truth that FTX had no CFO [1]. The CFO's experience and reputation is waht gives investors and regulators confidence that the financial statements that the CFO literally signs off on are valid. Listed companies on the NASDAQ and NYSE have lots of requirements here (eg internal and external audits). Obviously these don't apply to FTX but the truly shocking thing here is the…

> He either doesn't have lawyers... His parents are both lawyers! And law professors! Specializing in compliance and ethics!

Post by anonymoushn » Fri, Nov 18, 2022, 2:04 AM UTC

jandrese wrote: post #225

camjohnson26 wrote: post #176

Earlier quoted context omitted.

The lesson learned is that frauds can go on for a long time. It took decades and a once in a generation market crash to expose Bernie Madoff. Enron spent years running their sketchy accounting. Wirecard was only finally exposed after the German government essentially lobbied on their behalf against the journalists trying to expose the fraud.

These frauds can continue so long as they can continue to grow or at least maintain a steady state. Since they promise higher returns than can be achieved through honest means the liabilities grow faster than assets over time, but so long as nobody tries to realize their gains it's fine. FTX only came down because they pissed off the Binance guy who dumped his position all at once and exposed the fraud. I'm dubious T…