FTX collapse

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Euler
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I wonder if this is the moment when people realise just what they have got themselves involved in?

The court filing makes for horrific reading: -

https://pacer-documents.s3.amazonaws.co ... 648197.pdf
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wearthefoxhat
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The essence of what happened. Alameda were the "trading" arm of FTX run by the owners girlfriend for shits and giggles and funded by FTX customers who didn't authorise any spend/loans.

Tokens.png
FTXLending.png
illegal.png

There's obviously more, but it looks even more sus that they have legged it to the Bahamas to a property bought by FTX tokens. (FTT)
and, $600 million was syphoned out through the FTX exchanges back door security programme that only the owner had access keys to.

This one makes Bernie Madoff look like a choir boy...abeit a dead one.
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jimibt
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wearthefoxhat wrote:
Thu Nov 17, 2022 3:13 pm
The essence of what happened. Alameda were the "trading" arm of FTX run by the owners girlfriend for shits and giggles and funded by FTX customers who didn't authorise any spend/loans.


Tokens.png


FTXLending.png


illegal.png


There's obviously more, but it looks even more sus that they have legged it to the Bahamas to a property bought by FTX tokens. (FTT)
and, $600 million was syphoned out through the FTX exchanges back door security programme that only the owner had access keys to.

This one makes Bernie Madoff look like a choir boy...abeit a dead one.
quite an excellent breakdown!!
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Euler
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Location: Bet Angel HQ

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.
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Derek27
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jimibt wrote:
Thu Nov 17, 2022 3:18 pm
wearthefoxhat wrote:
Thu Nov 17, 2022 3:13 pm
The essence of what happened. Alameda were the "trading" arm of FTX run by the owners girlfriend for shits and giggles and funded by FTX customers who didn't authorise any spend/loans.


Tokens.png


FTXLending.png


illegal.png


There's obviously more, but it looks even more sus that they have legged it to the Bahamas to a property bought by FTX tokens. (FTT)
and, $600 million was syphoned out through the FTX exchanges back door security programme that only the owner had access keys to.

This one makes Bernie Madoff look like a choir boy...abeit a dead one.
quite an excellent breakdown!!
+1
Jukebox
Posts: 1576
Joined: Thu Sep 06, 2012 8:07 pm

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.
I think it may have something to do with MSM being on payroll and second largest donor behind Soros to Dem party not to mention all the 'useful idiots' (influencers) he courted who have been↨busy deleting all their recommendations and and supportive tweets.
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jimibt
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wearthefoxhat wrote:
Thu Nov 17, 2022 3:13 pm
This one makes Bernie Madoff look like a choir boy...abeit a dead one.
Yeah . They were living in the Bahamas in a $300 million penthouse.

* Alameda was owned by SBF. It was the "trading arm" that was not supposed to have any direct connection to FTX which obviously isn't the case.
* There was $10 Billion in customer funds siphoned to Alameda when they lost the $500 Million they bought Voyager for (then voyager declared Bankruptcy)

SBF programmed a backdoor into FTX to be able to take funds out without anyone being able to see the transaction. On the surface it would look Kosher, when in reality it was a façade.

In short, they were (cough) borrowing user assets!!
Jukebox
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jimibt wrote:
Thu Nov 17, 2022 8:56 pm
In short, they were (cough) borrowing user assets!!
But surely that must be breaking some regulation or other.
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jimibt
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Jukebox wrote:
Thu Nov 17, 2022 9:00 pm
jimibt wrote:
Thu Nov 17, 2022 8:56 pm
In short, they were (cough) borrowing user assets!!
But surely that must be breaking some regulation or other.
for sure.. but, caveat - regulation = regulated!!

as many here know, i *migrated* over to crypto trading (futures) a few years back, so this is a sharp reminder that one should only maintain the absolute required balance on any exchange or in any wallet that you don't own the keys to!! in short, always pull your profits.
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wearthefoxhat
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Update on Chapter 11 (still at the early stage of summary - normally takes 1 day) (now 7days on and still going) :o


Chap11A.png

Chap11B.png

Chap11C.png
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Rollox
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ColdFusion on Youtube is quite informative on subject.
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Rollox
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Patrick Boyle as well
mikki23
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I watched many interviews of SFB over the last few years, on the "FTX Official" YouTube channel they had many interesting interviews with other people as well: Traders, celebs like Marc Cuban or Shaq, the SEC Commissioner lol.
I honestly believed that SBF views on Effective Altruism etc. were sincere. So pretty shocking how things turned out.
I parked some crypto on FTX, pretty naive to not take it off and put it in a cold wallet. On the other hand: SBF was a billionaire, FTX was making huge profits with commissions, what could go wrong? :?
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wearthefoxhat
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mikki23 wrote:
Sun Nov 20, 2022 12:37 am
I watched many interviews of SFB over the last few years, on the "FTX Official" YouTube channel they had many interesting interviews with other people as well: Traders, celebs like Marc Cuban or Shaq, the SEC Commissioner lol.
I honestly believed that SBF views on Effective Altruism etc. were sincere. So pretty shocking how things turned out.
I parked some crypto on FTX, pretty naive to not take it off and put it in a cold wallet. On the other hand: SBF was a billionaire, FTX was making huge profits with commissions, what could go wrong? :?
Everyone felt the same about Bernie Madoff, until it imploded. (most people didn't understand finance and saw the $$)

With FTX (most people didn't understand their business model and saw the $$)

We tend to want to trust people and want to believe in a cause, scammers know this and manipulate it accordingly.

My questions now are, do we fully understand how Binance/Coinbase work? How transparent are they with the clients funds? Will they be next?
Jukebox
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Joined: Thu Sep 06, 2012 8:07 pm

The power of PR is astonishing.It can sell us sugary drinks at £2 and £3 a can a la Red Bull and make billionaires of people who can sell our own impossible dreams back to us until we discover they had no idea how to achieve them any more than we did a la Elizabeth Holmes. Promising some altruism (and hefty donations) seems to be an imortant PR tool if you're going big and want to secure politicians and media to your cause.
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