FTX collapse

mikki23
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Yeah, unfortunately, you can't trust anyone anymore.
In the case of CZ from Binance it's pretty obvious that this guy doesn't care about the "community" as he sometimes claims, your best hope is that Binance is making so much money that there isn't a big enough incentive to do more fraudulent things.
But in other cases it's not so clear, Vitalik Buterin comes off as a very decent guy, but after what happened with SBF, you cannot even trust him.
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napshnap
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Euler wrote:
Thu Nov 17, 2022 4:46 pm
It's hardly, excuse the pun, made a ripple on the main stream news. It's far more serious that any traditional financial scandal.

It's effects will echo around the industry for some time you would. Even if its impact is just to shoot the credibility of industry out the window. It will take a while for any confidence to return.
Isn't it the time to shine for bf (more aggressive ad, the slogan is "we don't hire kindergarteners" or like their old "coffin trick" with CRYPTO tag on the coffin ) ? Their rival from crypto-financial world sh*ted itself.
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Euler
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BREAKING: BlockFi is filing for immediate bankruptcy,
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wearthefoxhat
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Euler wrote:
Mon Nov 28, 2022 3:52 pm
BREAKING: BlockFi is filing for immediate bankruptcy,
Genesis Global Capital will likely be next... :?

Genesis.png
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wearthefoxhat
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SBF in a live interview from the dealbook summit event, with a New York Times rep, Andrew Ross-Sorkin. (without lawyers present)
He gets asked directly about pretty much all the things that anyone would want to ask him. (and he tries to answer them - painfully at times)


https://www.youtube.com/watch?v=IyoGdwVIwWw


My take;

SBF accepts he should of been more aware of exact assets/liabilities, and says his knowledge of Alameda and their positions were limited. He was out of his depth as a CEO and would of preferred to focus on the trading element building the business within. The impression I got that was he's looking for forgiveness and he can see it's gonna take a long time coming, if at all.

Reading his body language, I have more of a concern of his overall mental health. When confronted with real world problems, he seems to struggle and is overcome by them. Hopefully he develops a strong mindset and is aware that it's gonna get a lot worse before it gets better.

Reckon he should also come back to the USA and face the music. He seems to think the US arm of FTX is whole and can make the US people whole. (FTX international is f%&ked) He's over in the Bahamas because that's where he normally works...(Hmmm dunno about that one)
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Euler
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You have many responsibilities as a CEO and he really hasn't fulfilled any of them. Crypto in a nutshell.
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Naffman
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Euler wrote:
Thu Dec 01, 2022 11:51 am
You have many responsibilities as a CEO and he really hasn't fulfilled any of them. Crypto in a nutshell.
Surely playing League of Legends whilst closing a $250m investment deal is the sign of a true world-class CEO?
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gazuty
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Euler wrote:
Thu Nov 17, 2022 4:46 pm
It's hardly, excuse the pun, made a ripple on the main stream news. It's far more serious that any traditional financial scandal.

It's effects will echo around the industry for some time you would. Even if its impact is just to shoot the credibility of industry out the window. It will take a while for any confidence to return.
The lack of curiosity in the MSM is extraordinary.

Of course now the NYT has given him a platform and then GMA.

In the GMA interview, start watching at the 3 minute mark - https://www.youtube.com/watch?v=0Hxf4Vf54PI
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Euler
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This good and seven months old!

https://youtu.be/C6nAxiym9oc
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gazuty
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😱😱😱
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wearthefoxhat
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In the GMA interview, there were more judgemental questions SBF struggled with. "Are you afraid of going to jail?" That one shook him a little. Also, he admitted he got distracted, got cocky and believed he'd "made it."

The coffeezilla one 9 months ago was a good one. Demonstrated his naivety on a different level.

Putting it together, it suggests he had no clue why it worked the way it did, others around him gave him poor advice, massaged his ego and filled their pockets with lumps of cash probably knowing it won't last forever. SBF thought it would go on forever and he would leave a lasting legacy through altruistic endeavours later on down the line.

Over time, many of the big players have done some shady business practise to get where they are today, much of pre-internet which is so difficult to prove/disprove.
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Euler
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I also read this week that when people were buying Crypto on FTX, they were not buying the asset, just representing it in client accounts. So you never actually owned anything other that a credit on your FTX account.
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Archangel
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Euler wrote:
Sat Dec 03, 2022 1:28 pm
I also read this week that when people were buying Crypto on FTX, they were not buying the asset, just representing it in client accounts. So you never actually owned anything other that a credit on your FTX account.
Did people know they were just buying a derivative ?
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Euler
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No, they were never told.
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wearthefoxhat
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From what I can gather, FTX had no business bank account(s), Alameda did though, as their trading arm. (what a mess for sure)

So, all the clients deposits went to Alameda directly and FTX records can't account for the "loans" they made to Alameda. (Chapter 11 can't track the money flow)

SBF didn't know (or preferred not to) how much Alameda were losing until the last day of business, then it was all over.

They orginally tried to escape to Dubai (Caroline Ellison did) or to Argentina, but Bahamas was the only option for SBF.

He's now trying to talk his way out of it, but digging a bigger hole. (more naivety on his part)
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