Binance's CZ take on the fiasco

[lwlee]

Not with market manipulation, unfair dealing and front-running. I highly suspect that he sold his holdings BEFORE he made the announcement in twitter not at the same time and definitely not after. That's front-running. Front-running is in violation of security law and is illegal.

Highly suspected? I highly suspected 9/11 was a Jewish conspiracy. I actually heard someone tell me this. He went into details about it. Let's not project our own bias into this thing. It's bad enough already.

This whole crypto thing was just one big altruistic ruse. Free yourself from the tyranny of the centralized government and live in the blissful nirvana of DeFi. It turns out you were replacing a tried and true system with a bunch of crypto bros who did whatever the f*ck they wanted. Terra/Luna (Do Kwon), Celsius (Alex Mashinsky) now FTX/SBF. Many more. It's a joke. The crap that came out of their mouths. smh.

 

[TheDawn]

Highly suspected? I highly suspected 9/11 was a Jewish conspiracy. I actually heard someone tell me this. He went into details about it. Let's not project our own bias into this thing. It's bad enough already.

I highly suspect that's what he did. Without examining trade log to see when exactly he dumped his FTT holdings I can't say for sure. That's why you shouldn't project your own bias that this cz zhao shit is innocent because he's not.

This whole crypto thing was just one big altruistic ruse. Free yourself from the tyranny of the centralized government and live in the blissful nirvana of DeFi. It turns out you were replacing a tried and true system with a bunch of crypto bros who did whatever the f*ck they wanted. Terra/Luna (Do Kwon), Celsius (Alex Mashinsky) now FTX/SBF. Many more. It's a joke. The crap that came out of their mouths. smh.

Binance (Cz Zhao) is exactly the same as them. He just f***ed his rival, also his former business partner and peers to have caused their bankruptcy. Truly material made for a movie!

 

[destriero]

MissDawn, you can't count to five.

You cannot legally hypothecate client funds on the exchange for the purpose of funding $530MM loans to your head of engineering and other pet projects (unless you're Kushner).

You are so woefully out of your fucking depth, as always.

 

[The_Krakenite]

 

[lwlee]

I don't think they could have been saved. When you buy into your own BS and fully believe in cryptos going to the Moon, adding bad trading, even worse investments and no capital controls, no extra money inflow will save that.

Damn just read the Milky Eggs insider account. So maybe you right, it was too far gone. But let me preface it, as it's just a theory. Full article https://milkyeggs.com/?p=175

Fast forward to this week. SBF has been mean to CZ on Twitter, and CZ is going to teach him a lesson--make him squirm and ruin his week by publicly signaling a large FTT sell. It's very unlikely he knew this sell would completely blow up FTX. But it turns out Alameda was so compromised at that point they couldn't backstop a 500m FTT sell.

Alameda/FTX then bet the farm defending the $22 FTT line. When they ran out of liquidity, FTT dropped to $4, adding anotther $4b to the hole in the balance sheet. Throw in a bank run on top of it. Fin.

 

[traderjo]

I don't think you understand what I mean when I said "means justify the ends". SBF talked about giving away his fortune to do good ie similar to what the Gates/Buffett are doing with their billions. Using that fortune to help mankind by solving cancer and such. But his "means" to accomplish that end was misguided. He thought it was ok to commingled ie steal clients' money to finance his endeavors when he failed. Propping up Alameda with client money was illegal. It's no different than Madoff ponzi scheme or Holmes deception with Theranos. The Mafia probably felt their way of life/means (robbing/killing) was jsutified because it was "providing for the family"/ends. No it wasn't.

Propping up Alameda with client money was illegal
Not running a True Exchange and having a conflict of interest by running a trading fund ALL RED FLAGS ...

 

[lwlee]

Propping up Alameda with client money was illegal
Not running a True Exchange and having a conflict of interest by running a trading fund ALL RED FLAGS ...

Justifying the client money misappropriation could have been more deftly side stepped by saying that it's quite common to use client assets for investments. That's how banks work with mortgages. They hold a percentage of client funds for regulation purposes and use the rest for lending out to mortgage holders. You can refer to the famous movie, Jimmy Stewart's It's a Wonderful Life. In that case a bank run was about to bankrupt Stewart's bank. He gives an impassioned speech imploring the towns folk to understand that their deposits were tied up in legitimate businesses and mortgages. LOL, SBF imploring his crypto client that their money is tied up in the future. Believe in FTT! But it's pretty clear, SBF's misappropriation were probably orders of magnitude higher than any regulation requirements.

The FTX exchange apparently was pretty good. The one good thing that you could say about SBF. I mean it should be, right. He should have stayed in his lane and concentrated on the tech nerd stuff. Milky Eggs article shows that as traders, SBF and his team were lacking.

 

[destriero]

Justifying the client money misappropriation could have been more deftly side stepped by saying that it's quite common to use client assets for investments. That's how banks work with mortgages. They hold a percentage of client funds for regulation purposes and use the rest for lending out to mortgage holders. You can refer to the famous movie, Jimmy Stewart's It's a Wonderful Life. In that case a bank run was about to bankrupt Stewart's bank. He gives an impassioned speech imploring the towns folk to understand that their deposits were tied up in legitimate businesses and mortgages. LOL, SBF imploring his crypto client that their money is tied up in the future. Believe in FTT! But it's pretty clear, SBF's misappropriation were probably orders of magnitude higher than any regulation requirements.

The FTX exchange apparently was pretty good. The one good thing that you could say about SBF. I mean it should be, right. He should have stayed in his lane and concentrated on the tech nerd stuff. Milky Eggs article shows that as traders, SBF and his team were lacking.

C’mon, man. FTX loaned Singh >$500MM alone. SBF more than $3B. From FTX clients.

 

[lwlee]

C’mon, man. FTX loaned Singh >$500MM alone. SBF more than $3B. From FTX clients.

Let's be real. The entire thing was their personal piggy bank. It would have be interesting to see them try and justify it if either Singh or SBF used their full loan. Also I thought it was $1B for SBF. In any case, they did WHATEVER THE F*CK THEY WANTED.