31–40 of 251 posts
It's sort of curious that this SEC action is to protect the venture capital investors like Sequoia who invested in FTX shares directly. If I were a retail investor who lost my savings in FTX, I might be feeling upset that the government is rushing to action in defense of billion-dollar funds whose own due diligence failed massively, while seemingly nothing is being done to help those who invested in crypto based on F…
It's sort of curious that this SEC action is to protect the venture capital investors like Sequoia who invested in FTX shares directly. If I were a retail investor who lost my savings in FTX, I might be feeling upset that the government is rushing to action in defense of billion-dollar funds whose own due diligence failed massively, while seemingly nothing is being done to help those who invested in crypto based on F…
I mean, given that FTX.us was supposedly completely isolated from FTX.com isn't that true?
Assuming (and I understand this is a big assumption) that SBF is correct that FTX.us deposits were completely isolated and US customers can be reimbursed in full, the only US citizens harmed by this would be Sequoia et al.
Even if it turns out US customers are actually left holding the bag as well, does the SEC even have clear jurisdiction over FTX on that? Maybe? Wouldn't the DOJ criminal charges be much better wrt nailing him for that though?
Seems much easier for the SEC to charge him with defrauding investors, as that's pretty much a slam dunk case at this point and also clearly the jurisdiction of the SEC.
You can draw analogies here to Capone and tax fraud etc. etc.
This might just be the 'first arrow' from the SEC with much more to be added down the track, but it's interesting to see that they have gone in heavily on defrauding equity investors in the FTX business -- rather than pulling the rug on customers. Either that's because it's easier for the SEC to prove, and get it to the point of demonstrating fraud? Or the US customers and the FTX US business were relatively untouche…
This might just be the 'first arrow' from the SEC with much more to be added down the track, but it's interesting to see that they have gone in heavily on defrauding equity investors in the FTX business -- rather than pulling the rug on customers. Isn't that the same approach that federal prosecutors took with Theranos as well? From what I understand, Elizabeth Holmes went to jail for defrauding her investors, not pr…
[0]: https://en.wikipedia.org/wiki/Elizabeth_Holmes#U.S._v._Holme....
[1]: https://en.wikipedia.org/wiki/Sunny_Balwani#United_States_v....
It's sort of curious that this SEC action is to protect the venture capital investors like Sequoia who invested in FTX shares directly. If I were a retail investor who lost my savings in FTX, I might be feeling upset that the government is rushing to action in defense of billion-dollar funds whose own due diligence failed massively, while seemingly nothing is being done to help those who invested in crypto based on F…
1 - https://www.sec.gov/litigation/complaints/2022/comp-pr2022-2...
It's sort of curious that this SEC action is to protect the venture capital investors like Sequoia who invested in FTX shares directly. If I were a retail investor who lost my savings in FTX, I might be feeling upset that the government is rushing to action in defense of billion-dollar funds whose own due diligence failed massively, while seemingly nothing is being done to help those who invested in crypto based on F…
Whoa, are you trying to tell me all the big fish hyping up the Regulators Are Evil Economy get near-total legal protection of a regulated market, but all the little people who got taken in by it are going to get screwed? An incredible and unforeseeable development! Surely there will be more charges over time but the end result isn’t going to change much. The wealthy people who’ve been boosting all of this will take t…
At the same time, I have trouble finding sympathy for anyone involved. SBF is a sociopath, thief and liar.
Those big-name investors should have known better and I'm sure in many cases they did. They probably should start lawyering up too, because they've got investors of their own who have been harmed either through malfeasance of actionable incompetence.
And the 'small time' investors -- mom-and-pop, widows and orphans investing the life savings on the platform -- all crypto is a scam, a Ponzi scheme, at the very best it's a casino or playing the numbers. Always has been. Always will be. All they had to do was open their eyes or maintain critical thinking in the face of promoters trying to bamboozle them.
And yet dumb money says I'm wrong. BTC up 4% on the day....
It's sort of curious that this SEC action is to protect the venture capital investors like Sequoia who invested in FTX shares directly. If I were a retail investor who lost my savings in FTX, I might be feeling upset that the government is rushing to action in defense of billion-dollar funds whose own due diligence failed massively, while seemingly nothing is being done to help those who invested in crypto based on F…
This action is to protect investors. No need to make it into a conspiracy.
It's sort of curious that this SEC action is to protect the venture capital investors like Sequoia who invested in FTX shares directly. If I were a retail investor who lost my savings in FTX, I might be feeling upset that the government is rushing to action in defense of billion-dollar funds whose own due diligence failed massively, while seemingly nothing is being done to help those who invested in crypto based on F…
It's sort of curious that this SEC action is to protect the venture capital investors like Sequoia who invested in FTX shares directly. If I were a retail investor who lost my savings in FTX, I might be feeling upset that the government is rushing to action in defense of billion-dollar funds whose own due diligence failed massively, while seemingly nothing is being done to help those who invested in crypto based on F…
You seem to forget the debate between the SEC and the other org that want to regulate crypto. The reason SEC moved this fast was to add to their counter-point argument that they should be allowed to fully regulate crypto as securities.
I'll just quote part of what I said a month ago :) > And given what's leaked from their balance sheet, I don't see how people avoid jail time. https://news.ycombinator.com/item?id=33608691 I'll also add that SBF going on tour was the stupidest thing he could have done. Every time he spoke, he was giving the government more evidence. Hubris has often been the downfall of the rich and powerful throughout history. What'…
Some things sell themselves, but most great ideas sit around unknown by people who need them just because they don't know about it. I'd love to buy a better mousetrap to take care of my mouse problem, but if one exists I don't know about it. If you shout that your mouse trap is better I'll probably try it.
They both went all-in on this crypto bullshit in their latest funds and convinced otherwise healthy companies to pivot into it also. Their returns for these latest funds will be decimated and I couldn't be happier.