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FTX to file for U.S. bankruptcy, CEO resigns

reuters.com

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Re: FTX to file for U.S. bankruptcy, CEO resigns

#361

Post by AustinDev »

vgatherps wrote: post #220
AustinDev wrote: post #156

Earlier quoted context omitted.

Wow... I thought this was satire. (when talking about trading) 'We don't tend to have stop losses, we don't see those as very good risk management tools' No wonder they're bankrupt... SBF loaned her company 10 billion to trade without basic risk management for trading.

She’s not wrong, stop losses are pretty pointless if you’re running a high volume market maker that is in theory constantly doing tons of volume and reacting to updates. They’re also super dangerous if you have gigantic positions Anyways they wouldn’t save you from collateralizing your loans with shitcoins, taking leveraged bets with money that isn’t yours, having super high exposure to UST and/or Luna, exposed to ha…

Fair enough. I'm not familiar with that kind of trading I'm only familiar with basic day trading such as momentum and swing trading which stops have been very helpful for me personally. I imagine when you're making a market and are moving massive volume the rules are different and as you mentioned would require a lot of math like maybe trying to be delta neutral.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#362

Post by enkid »

function_seven wrote: post #354
theideaofcoffee wrote: post #346

Earlier quoted context omitted.

I also think this is an interesting question. Coming from a lay person I'd imagine it would remain with that name until the contract is up for renewal. Depending on how the naming deal was structured, the money to do the deal would probably have come from FTX' marketing budget in a lump sum up front (presumably) for a fixed number of years. When that's done, the arena will find another source of funds and give the ri…

If there's time left on the deal, but the arena would rather not keep the stinky association, can't they sell a new naming rights deal today, and send a portion of the new proceeds from that to FTX? In a way it would be another asset for the bankruptcy liquidator to disperse.

Alternatively, can FTX sell the naming rights (with the approval of the arena)

Re: FTX to file for U.S. bankruptcy, CEO resigns

#363

Post by Brendinooo »

theideaofcoffee wrote: post #346
indigodaddy wrote: post #332

Dumb question, but what happens to stuff like Miami Heat’s FTX Arena etc in situations like this? Should we expect a name change for the arena at some point soon?

I also think this is an interesting question. Coming from a lay person I'd imagine it would remain with that name until the contract is up for renewal. Depending on how the naming deal was structured, the money to do the deal would probably have come from FTX' marketing budget in a lump sum up front (presumably) for a fixed number of years. When that's done, the arena will find another source of funds and give the ri…

A few years ago Consol Energy broke a naming rights deal early; the original deal was $105 million over 21 years, but they were only about 8 years in. The Pittsburgh Penguins found a new partner in PPG Paints pretty quickly. And Consol didn't even go bankrupt!

The Heat will find another partner, and they may or may not try to get money out of the FTX bankruptcy proceedings, but I'm guessing the odds of that aren't super high. Probably more efficient to cut bait and move on.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#364

Post by anon291 »

gjsman-1000 wrote: post #214
vnchr wrote: post #161

Earlier quoted context omitted.

Your hypothesis is the second largest donor to the Democrat Party gave without expectation of quid pro quo?

I didn't try to suggest it because HN would probably downvote me to oblivion if I did. I personally, however, think that a quid pro quo is pretty likely - and Republicans would shout this from the rooftops if they had a little more sense in my opinion. Stealing a ton of money, giving a ton to Democrats, potentially helping win an election, and then not investigating or properly punishing the thief is a perfect crime.…

> Republicans would shout this from the rooftops if they had a little more sense in my opinion.

The Republican party has been defunct since 2008. I say this as a republican. Yes, they have local machines in isolated areas, but the party itself is non-existent on a national level, except when they scrape by due people being disaffected by the democrats. The Republicans have not been a true majority party for decades.

You will certainly see certain republicans shouting this, myself included. You will see smaller local groups shout this. But the national party does not really exist

Re: FTX to file for U.S. bankruptcy, CEO resigns

#365

Post by bogomipz »

monkeydust wrote: post #245

He should have just stuck to running an exchange and trying to innovate that game (note - earlier in the year lots of talk around their automated margin plan for wider industry beyond crypto). Theres a decent business there.

What was the "automated margin plan"?

Re: FTX to file for U.S. bankruptcy, CEO resigns

#366

Post by triceratops »

bitcharmer wrote: post #293
triceratops wrote: post #260

Earlier quoted context omitted.

Other than resigning, what more responsibility can someone take for a professional failure?

I hope you're trolling because this is a very large scale theft. Most of us would agree resignation is not appropriate consequence for such conduct.

I'm not trolling. So far this is just a business failure, not a crime.

I don't know much about this whole thing. It sounds likely there will be investigations, and they may prove "large scale theft" at that time. But right now resigning is the only way for him to "take responsibility".

Re: FTX to file for U.S. bankruptcy, CEO resigns

#367

Post by hotpotamus »

anon291 wrote: post #350
hotpotamus wrote: post #232

Earlier quoted context omitted.

Quoted post unavailable.

Good point. That must mean democrats can do no wrong. /s This sort of non sequitur is dangerous to democracy.

You might notice that I didn't say that. But I am skeptical that the party that has branded itself as the anti-regulation party for my entire life is really going to embrace regulation all of a sudden in response to the malfeasance of someone they perceive as being a political enemy.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#369

Post by n0tth3dro1ds »

EVa5I7bHFq9mnYK wrote: post #334
memish wrote: post #322

Earlier quoted context omitted.

Here's another guy that was vouching for SBF to get in on the Twitter deal for $5b. Michael Grimes [IBanker at Morgan Stanley]: Do you have 5 minutes to connect on possible meeting tomorrow I believe you will want to take? Elon: Will call in about half an hour Michael: Sam Bankman Fried is why I'm calling https://twitter.com/sbf_ftx/status/1514588820641128452 https://www.vox.com/platform/amp/recode/2021/3/20/22335209…

Interesting, the banker thinks "Major Democratic donor" is a positive selling point for Musk. I thought he is red.

The entire offer is embarrassing.

“Let me add useless, wasteful, and costly blockchain “tech” to your money-losing CRUD app. By the way, did you know we’re massive Democrat donors?”

Like offering poop flavored ice cream with vomit sprinkles.

Re: FTX to file for U.S. bankruptcy, CEO resigns

#370

Post by throwup »

2devnull wrote: post #338
Scoundreller wrote: post #277

Earlier quoted context omitted.

> "You got ninety percent of the American public out there with little or no net worth. I create nothing. I own. We make the rules, pal. Might make sense to tax the people doing the work less and the people owning stuff more. Should be a homerun policy in any democracy.

Which is why we have a progressive tax schedule. It didn’t work, or you wouldn’t be here complaining.

Surely he's saying the capital gains tax rate should be higher than the W-2 tax rate. That's definitely not the case in the US.
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