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$477M FTX ‘hack’ was a Bahamian government asset seizure

marketwatch.com

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Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#151

Post by dotnet00 »

tartoran wrote: post #23
sanxiyn wrote: post #11

Earlier quoted context omitted.

The news article doesn't state the legal authority, but the statement from Securities Commission of the Bahamas of course does. "Under the Digital Assets and Registered Exchanges Act, 2020 (DARE Act), the Commission has the authority..." The government has the right to do this because FTX agreed to this .

But does FTX have the right to agree to this? It’s like me agreeing with a stranger to sell your house and split the proceeds between us. FTX wasn’t entitled to the customers money and neither had the Bahamian authorities.

That's why crypto exchanges tend to be careful to not imply that they are banks. When you transfer your crypto to an exchange, the crypto is now theirs and they're just promising to give it back to you when you ask for it. Then they can do whatever they want with it internally until they go bust, at which point the promises all go in the trash.

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#153

Post by blitzar »

KptMarchewa wrote: post #15
sanxiyn wrote: post #13

Earlier quoted context omitted.

Do you have any evidence? At a glance, this seems to be Bahamian civil servants diligently doing their duty that was given.

SBF discussion with Vox reporter is a big hint.

My takeaway from his interview is that if you just give SBF another $10bn he can double it in a couple of months and make everyone whole again.

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#154

Post by Semaphor »

justinator wrote: post #115
alexeldeib wrote: post #86

Earlier quoted context omitted.

Pragmatically I agree with you. But in GPs defense, I don’t believe these were multisig wallets with geographically distributed individuals in control. It was 1/1. Nonetheless, a metal pipe is a good counter to crypto.

I fear if Bad Guys want money and you tell them something like, "you can't get it, it's on multisig wallets with geographically distributed individuals in control", that's still a You problem and you've only bought yourself a little time before they come back to collect, and/or break your legs if they can't collect. I may have to file this one under, "everyone wants to be a gangster until it's time to do gangster thi…

At that point you are at "People want money you don't have and are willing to break your legs".

No relation to crypto or even who you are anymore.

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#155

Post by blitzar »

orionion wrote: post #101
stefan_ wrote: post #30

Earlier quoted context omitted.

A seizure of funds is certainly not the first step of bankruptcy proceedings. SBF seems to have "fled" to the Bahamas, and he would obviously have the access needed to make the transfer. And as the article says, the Bahamas are trying to get the US Chapter 11 proceedings thrown out arguing their own bankruptcy proceedings have priority. There was also the mystery texts from SBF arguing "Chapter 11 was my biggest mist…

The Bahamian government is overseen by "The Firm"... >The Crown and the Police Force https://en.wikipedia.org/wiki/Monarchy_of_the_Bahamas#The_Cr... The national police force of the Bahamas is known as "The Royal Bahamas Police Force". >The St. Edward's Crown appears on the Bahamian Police's badges and rank insignia, which illustrates the monarchy as the locus of authority. >Every member of the Royal Bahamas Police F…

> I can imagine many levels of royal induced pressure being applied here.

The royals give zero fucks about SBF and crypto.

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#156

Post by freetanga »

yanderekko wrote: post #56
sanxiyn wrote: post #28

Earlier quoted context omitted.

Bahamian government is seizing assets "to protect the interests of clients or customers".

That's just dodging the key question. Obviously the government has some rationale other than that they're taking it because they can. The problem is that they're still taking money that's owned by someone else, even if it's controlled by SBF. I'm sure there are strong international norms if not laws against a sovereign power directing a foreign financial actor to repay some sort of debt by pilfering client deposits,…

Bahamas gov needs time to identify who owns what. They seized the assets for safekeeping and surely will collaborate with US Courts too.

Who would you rather have keeping your money? SBF with a warrant on his head and cash to disappear forever, or a national govermebt you can eventually sue if needed?

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#158

Post by lost_tourist »

thallium205 wrote: post #75
woodruffw wrote: post #19

Maybe this is a stupid question, but how ? Was the Bahamas' SEC holding its own copies of FTX's keys? I thought the entire point of these schemes was that this kind of seizure-by-force wasn't possible (absent exploits or insiders).

It says right in the article SBF did it himself because the government asked him to after declaring bankruptcy.

I assume it's to get their bribe money before anyone else had a chance.

Re: $477M FTX ‘hack’ was a Bahamian government asset seizure

#160

Post by 55555 »

manholio wrote: post #112
55555 wrote: post #107

No one is mentioning that the new FTX CEO wrote in a recent Chapter 11 filing that the hack we're discussing here was actually 2 events: the movement of ~$300 in crypto AND the dilutive printing of ~$300 in FTT. Can somebody please explain that second one? Because this makes no sense at all.

It doesn't really matter, FTT is a garbage token forever associated with fraud. Its value is zero and you can print how many you like without hurting anyone.

It matters a lot. Bahamas seizing existing crypto makes sense. Printing more and diluting holders is just bizarre. That would basically be the Bahamas doing a rugpull.
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