[flagged]
FTX creditors will make money on bankruptcy
141–150 of 155 posts
Re: FTX creditors will make money on bankruptcy
#142Earlier quoted context omitted.
This is such a bad faith argument. Imagine you put up your house as an investment into some crypto exchange and the exchange goes bankrupt because it turns out they're misusing customer funds and defrauding their customers. You'll get your house back when legal proceedings are done. What value that house has before or after is sort of irrelevant except as a way for you to twist the issue to fit your narrative. Nobody…
>Be glad the government is involved at all or you might not be getting anything back. This. I'm constantly surprised that the government helps people in these situations. If they want the government to be involved, they should push for crypto to actually follow all of the laws that apply to traditional financial things, which would eliminate a lot of these scams that end up requiring government intervention in the fi…
That's the job of a government, and why would people fund it through taxes if it doesn't do its job?
Re: FTX creditors will make money on bankruptcy
#143Earlier quoted context omitted.
This is such a bad faith argument. Imagine you put up your house as an investment into some crypto exchange and the exchange goes bankrupt because it turns out they're misusing customer funds and defrauding their customers. You'll get your house back when legal proceedings are done. What value that house has before or after is sort of irrelevant except as a way for you to twist the issue to fit your narrative. Nobody…
But what if instead of getting your house back, you're only getting the cash equivalent of what your house was worth THEN, plus some interest. Meanwhile, your house, which you no longer own, has tripled in value.
This is unironically the reason why stock trading is so heavily regulated.
If you looked at Bitcoin, whose entire pitch is that it's a poorly regulated speculative instrument, and thought "I'm going to put my house in this" you are an adult accepting unreasonable levels of risk.
Just because FTX (predictably) was run by a con man who got his whole company shut down DOESN'T MEAN that you're a victim. You gambled money you didn't have on a system you didn't care to understand and you are lucky to even get the money back.
Re: FTX creditors will make money on bankruptcy
#144Earlier quoted context omitted.
>Be glad the government is involved at all or you might not be getting anything back. This. I'm constantly surprised that the government helps people in these situations. If they want the government to be involved, they should push for crypto to actually follow all of the laws that apply to traditional financial things, which would eliminate a lot of these scams that end up requiring government intervention in the fi…
That's the job of a government, and why would people fund it through taxes if it doesn't do its job?
Because many people do not want the government to regulate crypto.
Re: FTX creditors will make money on bankruptcy
#145Earlier quoted context omitted.
Even that article says the assets there are not enough to come close to liabilities. FTX was insolvent at that time.
It did not help that CZ triggered a run on the assets at the worst time; otherwise it likely would have been fine. When FTX ran out of money, every depositor instantly became a creditor. I doubt this is unique to FTX. many exchanges may have some shortfall between deposits and credits.
No, it didn't help, but FTX should not have ever been in a position where a bank run forced them into bankruptcy and froze customer assets.
They're not a lender, they're just an exchange. Regardless of taking on debt to manage settlement, the fact that people did not own the assets in their FTC accounts is insane.
Re: FTX creditors will make money on bankruptcy
#146Earlier quoted context omitted.
That's the job of a government, and why would people fund it through taxes if it doesn't do its job?
Because many people do not want the government to regulate crypto.
Is that really a majority? I have big trouble believing so. The majority still doesn't know what is bitcoin (except "that money thing").
Re: FTX creditors will make money on bankruptcy
#147[flagged]
I imagine few on HN would fall for this comment, but this is a recovery scam.
https://consumer.ftc.gov/consumer-alerts/2022/11/worried-abo...
Re: FTX creditors will make money on bankruptcy
#148Earlier quoted context omitted.
>Be glad the government is involved at all or you might not be getting anything back. This. I'm constantly surprised that the government helps people in these situations. If they want the government to be involved, they should push for crypto to actually follow all of the laws that apply to traditional financial things, which would eliminate a lot of these scams that end up requiring government intervention in the fi…
That's the job of a government, and why would people fund it through taxes if it doesn't do its job?
>That's the job of a government, and why would people fund it through taxes if it doesn't do its job?
Regulation and protection go hand in hand, if you don't want the regulation, you shouldn't be able to ask for the protection that goes along with it. If you want to gamble your real money by converting it to fake digital tokens, that's fine, but you shouldn't ask the government to use taxpayer money bail you out afterwards. If you want government protection for investments, you should invest in schemes that are regulated by the government instead.
Re: FTX creditors will make money on bankruptcy
#149Earlier quoted context omitted.
If bitcoin is up 260%, the non-cryptocurrency assets must bringing the average return down, right?
From what I’ve read there wasn’t really that much bitcoin left by the time they were shuttered, and their own tokens were worthless. That’s part of the whole issue - SBF was just doing whatever he felt like with customer assets and balances. Plus inventing assets out of thin air. The profit that people will get has largely been driven by FTX’s investments in AI stuff, which turn out to have done great. Think about it…
LOL, got my maths a bit wrong there, 260% growth of $200 would be $720, not $460. Doesn't change the overall picture though :)
Re: FTX creditors will make money on bankruptcy
#150The statement is misleading. People are making 18% interest on the value of Bitcoin et al. at the value of 2022, which is less than $20k. Now that is $60k, back to the value levels of 2021. Thus, the only reason there is interest is that the cryptocurrencies found gained back their value, and the bankruptcy court gets to consider the values when the bankruptcy started in 2022, not current/before 2022 values.
In yet another “crypto is just speed-running regular finance” moment, they ran the same crock about _Nick Leeson_. And that was a far from victimless crime as well.
Worth noting, for people not familiar, that Nick Leeson got massively less time in prison than SBF.
A couple differences between them but the biggest one may be how hard the USA goes on financial crimes.