Someone Please Explain FTX

variant · Nov 17, 2022

I would add that FTX was basically set up as a scheme.

The way it was self dealing was meant to make it's coin inflate in value by trading it back and forth between FTX and the hedge fund to whatever value they wanted it to be at.

Fried spoke at length and with great eloquence to congress about the ills of the financial crisis, but now it sounds like he was someone who felt like they could have set up a much bigger sham.

That this wasn't set up entirely on purpose is hard to believe. I think they just didn't think they would get caught.

Hans Blaster · Nov 17, 2022

variant said:
I would add that FTX was basically set up as a scheme.

The way it was self dealing was meant to make it's coin inflate in value by trading it back and forth between FTX and the hedge fund to whatever value they wanted it to be at.

Fried spoke at length and with great eloquence to congress about the ills of the financial crisis, but now it sounds like he was someone who felt like they could have set up a much bigger sham.

That this wasn't set up entirely on purpose is hard to believe. I think they just didn't think they would get caught.

They also didn't just incorporate in The Bahamas for some legal/tax advantage, but actually ran their company from the islands. Sounds legit.

Tuur · Nov 18, 2022

variant said:
What they wanted was an unregulated banking system, and that is why you might want one.

Supposedly the original idea was anomyty in transactions. Supposedly. Which I haven't figured out, either, because it would seem that all someone who wanted to monitor crypocurrency would have to do is to join the blockchain. But it was self-minted fiat currency from the start.

DaisyDay · Nov 18, 2022

Hans Blaster said:
They also didn't just incorporate in The Bahamas for some legal/tax advantage, but actually ran their company from the islands. Sounds legit.

But then, for some reason, they filed for bankruptcy in the US, which gives the US courts jurisdiction that they might not have had otherwise.

variant · Nov 18, 2022

DaisyDay said:
But then, for some reason, they filed for bankruptcy in the US, which gives the US courts jurisdiction that they might not have had otherwise.

Our bankruptcy protections are rather nice for failed corporations. I would guess the guy wanted to leverage all the political money he spent.

DaisyDay · Nov 18, 2022

Tuur said:
Supposedly the original idea was anomyty in transactions. Supposedly. Which I haven't figured out, either, because it would seem that all someone who wanted to monitor crypocurrency would have to do is to join the blockchain.

Monitoring the blockchain wouldn't tell you which wallet (crypto-account) belongs to whom. The wallets don't have names associated with them, only numbers. Sometimes it can be deduced that a particular person owns a particular wallet by trades and volumes and sometimes it gets out that a particular person owns a wallet (from trading partners or some such), but overall, it is secret. Which is a double-edged sword, if an account key gets stolen or the accounts get hacked.

But it was self-minted fiat currency from the start.

Worse than penny stocks - pump 'em and dump 'em.

Ana the Ist · Nov 19, 2022

Tuur said:
Seriously. I've tried to follow the rise and fall of FTX, and I don't understand it. I know cryptocurrency are all or mostly private fiat issuings and are driven by speculation, and growing up was fascinated by the Tulip Bubble, but I don't understand how FTX found that much in investments for what isn't even printed paper, or how the discovery that an associate company holding billions of their cryptocurrency would trigger the collapse.

Please, no conspiracy theories. This is just trying to understand what went on.

Crypto in general is largely just a scam. The reason fiat currencies have value is they are traded for labor, services, and products.

That might seem like a trite observation....but without it being true....a dollar bill is just paper.

Crypto is very very limited in what you can buy with it. As you said, it's value is detached from its price. Speculators hype a Crypto, charge fees by running an exchange, drive the speculative price up....and sell for real money.

Unless you're running an exchange, mining Crypto, driving speculation through market manipulation....you're probably one of the people being robbed by this pump and dump scam.

Ana the Ist · Nov 19, 2022

DaisyDay said:
I don't know what the clawback angle is/means?

ETA: Do you mean the lawsuits against the people who shilled for FTX, such as Tom Brady and Larry David? Or the youtube finance gurus who didn't disclose that they were being paid to tout the exchange? The athletes may have an out in that as sports stars, why would they be expected to be giving sound financial advise, but on the other hand, they got paid a ton of money for their endorsements.

New athletes maybe....but I'd have a hard time believing more experienced athletes don't understand the regulations around endorsements and sponsors.

Tuur · Nov 20, 2022

DaisyDay said:
I don't know what the clawback angle is/means?

ETA: Do you mean the lawsuits against the people who shilled for FTX, such as Tom Brady and Larry David? Or the youtube finance gurus who didn't disclose that they were being paid to tout the exchange? The athletes may have an out in that as sports stars, why would they be expected to be giving sound financial advise, but on the other hand, they got paid a ton of money for their endorsements.

Sorry I missed this earlier. Clawback is where those paid or received funds are forced to return it. An example was an employee for a company who pulled down I think six digits worth of pay for fraudulent behavior and was forced to return it. It has also happened to other companies and individuals, the argument being along similar lines. Clawback is different from suing for damages, for in the latter you have to show that damages took place.

This is where I'm doubtful that donations made by FTX can be clawedbacked. Those FTX made donations to were not part of FTX. But have seen clawback mentioned as a possibility.

essentialsaltes · Dec 12, 2022

https://www.cnn.com/2022/12/12/business/sam-bankman-fried-arrested/index.html

“Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the US government, based on a sealed indictment filed by the SDNY,” wrote US attorney Damian Williams. “We expect to move to unseal the indictment in the morning and will have more to say at that time.”

bèlla · Dec 12, 2022

FTX is the catalyst for CBDC. The fallout allows regulators to denounce independence and reinforce the necessity of oversight through CBDC coins backed by The Federal Reserve. We’re moving from fiat to digital currency which provides a window into our purchases they can’t obtain through cash. It increases their control and ability to silence dissenters. Social credit will follow. China is the example.

The Cryptoteacher covers it well. Reference his videos.

~bella

Hans Blaster · Dec 12, 2022

bèlla said:
FTX is the catalyst for CNBCs. The fallout allows regulators to denounce independence and reinforce the necessity of oversight through CNBC coins backed by The Federal Reserve. We’re moving from fiat to digital currency which provides a window into our purchases they can’t obtain through cash. It increases their control and ability to silence dissenters. Social credit will follow. China is the example.

The Cryptoteacher covers it well. Reference his videos.

~bella

1. It's "CBDC" (Central bank digital coin) not "CNBC" (a financial cable TV network)

2. The Federal Reserve has not even issued a CBDC yet. (It is apparently being considered, but I frankly don't see the purpose of it.)

3. Your YT link was to a channel not any specific video we might gain insight from. The list of videos are clearly filled with conspiracy theory and financial paranoia.

bèlla · Dec 12, 2022

Hans Blaster said:
1. It's "CBDC" (Central bank digital coin) not "CNBC" (a financial cable TV network)

2. The Federal Reserve has not even issued a CBDC yet. (It is apparently being considered, but I frankly don't see the purpose of it.)

3. Your YT link was to a channel not any specific video we might gain insight from. The list of videos are clearly filled with conspiracy theory and financial paranoia.

I’ve corrected the typo and provided a reputable source for insight. The topics are clearly noted and its a good source to see the connection with WEF and global activities. I wouldn’t provide something harmful for the OP. I’m an investor and that’s one of my resources. The explanations are beneficial for novices. He connects the dots in a manner that’s understandable.

@timothyu @SavedByGrace3 @Carl Emerson You may want to check out the link.

~bella

jacks · Dec 12, 2022

"Never invest in a business you cannot understand " Warren Buffet

If people followed this rule almost nobody would buy crypto currencies.

Hans Blaster · Dec 12, 2022

bèlla said:
I’ve corrected the typo and provided a reputable source for insight.

Correction noted.

bèlla said:
The topics are clearly noted and its a good source to see the connection with WEF and global activities.

As I said conspiracy theory and financial paranoia.

bèlla said:
I wouldn’t provide something harmful for the OP. I’m an investor and that’s one of my resources.

Crypto is at best speculation, but most likely the only "investment" one can make is to hype it until some bigger sucker buys your portion. If you want to recover your money, get out, preferably now.

bèlla said:
The explanations are beneficial for novices.

Aka, new suckers.

bèlla said:
He connects the dots in a manner that’s understandable.

~bella

[guy_with_string_map.gif]

DaisyDay · Dec 14, 2022

Coffeezilla is a little shticky, but he's not a scammer. He explains in a way that is easy to follow.

In this video, Coffeezilla gets SBF to admit that FTX customer funds were co-mingled with Alameda Research's trading/gambling money despite that being against terms of service and illegal.

Hans Blaster · Dec 14, 2022

DaisyDay said:
Coffeezilla is a little shticky, but he's not a scammer. He explains in a way that is easy to follow.

In this video, Coffeezilla gets SBF to admit that FTX customer funds were co-mingled with Alameda Research's trading/gambling money despite that being against terms of service and illegal.

SBF doesn't seem particularly clever, or rather he thinks he's a lot more clever than he is. I'd like to see him take the stand in his own defense...

Paulos23 · Dec 15, 2022

Hans Blaster said:
SBF doesn't seem particularly clever, or rather he thinks he's a lot more clever than he is. I'd like to see him take the stand in his own defense...

Looks like you might get your chance to see that.

DaisyDay · Dec 15, 2022

Hans Blaster said:
SBF doesn't seem particularly clever, or rather he thinks he's a lot more clever than he is. I'd like to see him take the stand in his own defense...

He is used to being the smartest boy in the room, but now he is trying for the aw shucks, I had no idea defense, I’m just so dumb.

Laodicean60 · May 11, 2024

I have been looking into crypto and whatever it is it's not going away. Trillions of dollars is going into blockchain technology mainly used for business transactions. Crypto minimizes the cost of business transactions like credit card fees. The banks don't like this so they are implementing their own to squeeze more dimes from business. Bitcoin and Ethereum are the big players and they aren't going anywhere but the rest may be questionable. The next dip I think I'll throw in some change.

Someone Please Explain FTX

Happy Cat

On August Recess

Well-Known Member

I Did Nothing Wrong!! ~~Team Deep State

Happy Cat

I Did Nothing Wrong!! ~~Team Deep State

Aggressively serene!

Aggressively serene!

Well-Known Member

Fact-Based Lifeform

❤️

On August Recess

❤️

Er Victus

On August Recess

I Did Nothing Wrong!! ~~Team Deep State

On August Recess

Never tell me the odds!

I Did Nothing Wrong!! ~~Team Deep State

Well-Known Member

Similar threads

Privacy & Transparency

Privacy & Transparency