FTX collapse was not a liquidity crisis

[Baron]

the only other noteworthy precedent for a crypto bankruptcy case is Tokyo-based Mt. Gox – the largest exchange for BitcoinBTC +0.3% in 2010 that collapsed in 2014

I had some Bitcoin in Mt. Gox when it collapsed in 2014, and since then I'll occasionally get a postcard in the mail written in Japanese and broken English updating me on the situation. What's crazy is that it's 2022 and they are STILL working on reimbursing those who were affected.

I can't even imagine how long this FTX mess will take to fully sort out?

 

[taowave]

Spending the rest of his life in prison may be his safest bet..Its one thing to embezzle from a state teachers/pension fund, God only knows who he fooked over in the Crypto space..

That crowd may not be as forgiving

I wonder if SBF knows in the back of his mind that he's completely fucked and will spend the rest of his life in prison, or if he actually thinks there's a way out of all this?

 

[Baron]

there was nothing wrong with the ftx exchange

From the perspective of regular customers, you're right. FTX did function well.

However, Alameda created the FTT token out of thin air and then used their own FTX exchange to trade FTT amongst themselves to establish a bullshit value for the token. Then they went out and borrowed billions from institutions using a massive treasure chest of FTT tokens they created out of nothing for themselves as collateral for those loans. So FTX still has plenty of liability for being an integral part of that manipulative scheme.

 

[misterkel]

From the perspective of regular customers, you're right. FTX did function well.

However, Alameda created the FTT token out of thin air and then used their own FTX exchange to trade FTT amongst themselves to establish a bullshit value for the token. Then they went out and borrowed billions from institutions using a massive treasure chest of FTT tokens they created out of nothing for themselves as collateral for those loans. So FTX still has plenty of liability for being an integral part of that manipulative scheme.

No argument here!
short version:
Great Platform, corrupt business!

 

[misterkel]

https://sovren.media/video/ftx-scandal-and-ukraine-what-is-the-truth-2098.html

Interesting unreported info.

 

[M.W.]

Are you kidding me? Which person with a wealth of more than 100 million have you EVER seen to have spent a life long sentence in prison? I don't know of a single one. They have get out of jail free cards because the system was designed by them, for them. He will at most spent 8 years is my prediction. Investors operated in a completely grey and unregulated area of the market. Their fault. They should have known the risks.

I wonder if SBF knows in the back of his mind that he's completely fucked and will spend the rest of his life in prison, or if he actually thinks there's a way out of all this?

 

[M.W.]

Just a month ago you ripped everyone a new one for criticizing anything crypto related. All of a sudden you are a short seller and informed critic? And now the government is behind all this? You are a true nutcase my friend.

SBF is a trojan horse, a Fed agent, a government operative sent by the banking cartel, elites and US G to suppress and destroy Bitcoin and cryptos

he probably won't spend a day in prison.... or he won't kill himself

 

[BMK]

https://sovren.media/video/ftx-scandal-and-ukraine-what-is-the-truth-2098.html

Interesting unreported info.

That report is from Ben Swann.

According to Wikipedia, Ben Swann

reported on conspiracy theories about the 2012 Aurora, Colorado shooting, questioned the truth of the Sandy Hook Elementary School shooting, presented 9/11 conspiracy theories, and the false claims of a cover-up by the CDC of data related to the MMR vaccine and autism. He has also questioned the use of chemical weapons in the Syrian Civil War, whether United States had a role in the development of the Islamic State, and other controversial topics.

In 2017, after his employer, CBS affiliate 46 in Atlanta, aired a Reality Check which presented the false Pizzagate conspiracy theory as potentially true, Swann was forced by WGCL to bring down his Truth in Media website and all of his social media. About a year later, he was fired when WGCL learned that Swann was planning to relaunch Truth in Media.

I think I'll look elsewhere for news about FTX.

 

[M.W.]

So you honestly believe there was nothing wrong with the performance of their major market maker that it received an illegal and undisclosed cash infusion in the billions? My bet is that when all comes to light that some bets in the billions have been placed by the market making arm that went sour and had to be covered.

Most f'ed up aspect - there was nothing wrong with the ftx exchange. It worked well and made money.
It was the back-door business and Alameda $8bn foot-massaging that wuz da probs.
I think a smart investor could buy (or clone) the platform and entice users back with a DEX/ transparently audited funds from a reliable auditor, with a secondary audit check by a client based party.

 

[RedDuke]

Are you kidding me? Which person with a wealth of more than 100 million have you EVER seen to have spent a life long sentence in prison? I don't know of a single one. They have get out of jail free cards because the system was designed by them, for them. He will at most spent 8 years is my prediction. Investors operated in a completely grey and unregulated area of the market. Their fault. They should have known the risks.

Elizabeth Holmes will spend 11 years in jail. Look up Martha Stuart or Al Taubman. Plenty of others. Enron Ken Lay died in prison. Wordcom CEO got like 25 years. Rich people do go to jail for long periods as well.