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> the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals. The most fascinating part of this whole story to me is just how few checks and balances there were in this company. Even without a board, did major investors not get his quarterly financials? If the leaked balance sheet was any indication of their level financial engineering cap…
It's weird to me that people talk about this as an indictment of EA...but this rings similar to me as claiming that this is an indictment of DeFi or cryptocurrency generally. Sam/Caroline weren't doing DeFi, and neither were they really doing anything related to cryptocurrency. This was just a pretty staightforward scam.
Just a general statement on people commenting on this saga: Sam wasn't doing effective altruism. He was lying about doing effective altruism. It's weird to me that people talk about this as an indictment of EA...but this rings similar to me as claiming that this is an indictment of DeFi or cryptocurrency generally. Sam/Caroline weren't doing DeFi, and neither were they really doing anything related to cryptocurrency.…
Earlier quoted context omitted.
Yes, but the total lack of corporate governance that contributed to it is totally legal, and could have possibly prevented the fraud and theft.
Not investing into companies that are obviously either frauds or extremely incompetent is the investor's job. We don't need a lot of new regulation to make it harder for you to buy bridges from people you meet on the subway.
Is Sequoia going to need to rebrand itself after this? Sure does raise some questions about their judgement and professionalism. Hey Investors, we're raising a round of almost half a billion dollars and the theme is...
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Does this mean that Sam was the one who sold Binance the FTT which Binance subsequently used to cause FTT to collapse? Yes exactly. Binance triggered FTX's downfall by dumping FTT I don't know if they actually dumped; they just announced it. It doesn't matter now.
It matters! Because that'd be hilarious. Is that really true that an announcement of a pending large sale (but no actual sale) was enough delta to topple the house of cards? Fascinating.
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There are likely other charges that they could face. I don't think this rises to the level of embezzlement (although IANAL), but the missing customer deposits, lack of strict segregation between Alameda and FTX, and the use of company assets for personal loans and purchases will probably lead to indictments.
that I agree on, just commenting on this specific article
https://www.reuters.com/markets/currencies/exclusive-least-1...
Of course, with the way he and his family are connected, it wouldn't surprise me if he eventually walks free.
Just a general statement on people commenting on this saga: Sam wasn't doing effective altruism. He was lying about doing effective altruism. It's weird to me that people talk about this as an indictment of EA...but this rings similar to me as claiming that this is an indictment of DeFi or cryptocurrency generally. Sam/Caroline weren't doing DeFi, and neither were they really doing anything related to cryptocurrency.…
Just a general statement on people commenting on this saga: Sam wasn't doing effective altruism. He was lying about doing effective altruism. It's weird to me that people talk about this as an indictment of EA...but this rings similar to me as claiming that this is an indictment of DeFi or cryptocurrency generally. Sam/Caroline weren't doing DeFi, and neither were they really doing anything related to cryptocurrency.…
How was he not doing EA? He was lying AND donating to causes. I'm very pro-EA but that's a weird claim.
Just a general statement on people commenting on this saga: Sam wasn't doing effective altruism. He was lying about doing effective altruism. It's weird to me that people talk about this as an indictment of EA...but this rings similar to me as claiming that this is an indictment of DeFi or cryptocurrency generally. Sam/Caroline weren't doing DeFi, and neither were they really doing anything related to cryptocurrency.…