FTX/Sam Bankman-Fried
Discussion
KaraK said:
My (pretend) money is on Kraken
that link said:
FTX is going after the ByBit cryptocurrency exchange for almost $1 billion, hoping to recover funds that the firm was able to withdraw just before FTX stopped processing withdrawals. According to the lawsuit, ByBit used its VIP access to FTX to successfully withdraw their funds even when other customers could not, and pressured FTX employees to prioritize their withdrawals.8 The FTX team also alleges that ByBit is holding $125 million in FTX assets “hostage” on its own exchange, trying to use them as “leverage” to regain access to their $20 million remaining on FTX.
FTX also alleges in the lawsuit that ByBit is part of a “fraudulent scheme” involving BitDAO (later renamed to Mantle), a supposed decentralized and community-run organization that a ByBit executive reportedly admitted the company actually controlled. After the FTX bankruptcy and the crash of the FTT token price, BitDAO tried to undo a past deal where they had agreed to exchange BIT for FTT. When the FTX bankruptcy team did not agree to let BitDAO go back on the deal, the group came up with a scheme to effectively erase FTX’s BIT holdings, which was agreed upon by “community vote” involving voters who certainly seem to be ByBit execs. (Free word of advice here: if you’re an exec who wants to avoid getting caught doing this, maybe don’t cast 20 million votes from your firstinitial-lastname.eth wallet).
After “extensive negotiations” between the remnants of the imploded Three Arrows Capital hedge fund and the bankrupt Genesis cryptocurrency lender, Genesis is seeking permission from the bankruptcy court to settle $1 billion in claims from Three Arrows by issuing a $33 million unsecured claim. Three Arrows had also borrowed extensively from Genesis to the tune of around $1.2 billion.9
Hodlnaut, a crypto lender based in Singapore that halted withdrawals in August 2022, is going to be liquidated.10 It’s not exactly been smooth sailing over there: first it came out that the CEO apparently lied when he said they had no exposure to the Terra collapse (when in fact they realized a ~$190 million loss) [W3IGG], then the founders tried to hide financial records from court-appointed advisers brought in to oversee the company’s affairs while they evaluated if they would need to liquidate [W3IGG].
Bittrex, a one-time major player among US crypto exchanges, is closing up shop completely [W3IGG]. This is not exactly a surprising development, given that they paid a then-record $29 million fine for sanctions violations in October 2022 [W3IGG], shut down US operations in March 2023 [W3IGG], filed for bankruptcy in the US in May [W3IGG], and then paid $24 million to settle a lawsuit from the US SEC in August [W3IGG].
There’s been one more unfortunate event for Coin Cloud, to add to the whole series of them I wrote about in February [I19]. Hackers have claimed to have exfiltrated private information belonging to around 300,000 of the crypto ATM firms’s customers, and around 70,000 selfies taken by ATM cameras as a part of know-your-customer processes. The personal information includes details like social security numbers, dates of birth, names, and addresses. The hackers also claim to have obtained the company’s source code.
You almost couldn't make it up! I do wonder if there is a single crypto entity that would pass an audit. Hold on, i don't even wonder that much, i think the chances are too slim..FTX also alleges in the lawsuit that ByBit is part of a “fraudulent scheme” involving BitDAO (later renamed to Mantle), a supposed decentralized and community-run organization that a ByBit executive reportedly admitted the company actually controlled. After the FTX bankruptcy and the crash of the FTT token price, BitDAO tried to undo a past deal where they had agreed to exchange BIT for FTT. When the FTX bankruptcy team did not agree to let BitDAO go back on the deal, the group came up with a scheme to effectively erase FTX’s BIT holdings, which was agreed upon by “community vote” involving voters who certainly seem to be ByBit execs. (Free word of advice here: if you’re an exec who wants to avoid getting caught doing this, maybe don’t cast 20 million votes from your firstinitial-lastname.eth wallet).
After “extensive negotiations” between the remnants of the imploded Three Arrows Capital hedge fund and the bankrupt Genesis cryptocurrency lender, Genesis is seeking permission from the bankruptcy court to settle $1 billion in claims from Three Arrows by issuing a $33 million unsecured claim. Three Arrows had also borrowed extensively from Genesis to the tune of around $1.2 billion.9
Hodlnaut, a crypto lender based in Singapore that halted withdrawals in August 2022, is going to be liquidated.10 It’s not exactly been smooth sailing over there: first it came out that the CEO apparently lied when he said they had no exposure to the Terra collapse (when in fact they realized a ~$190 million loss) [W3IGG], then the founders tried to hide financial records from court-appointed advisers brought in to oversee the company’s affairs while they evaluated if they would need to liquidate [W3IGG].
Bittrex, a one-time major player among US crypto exchanges, is closing up shop completely [W3IGG]. This is not exactly a surprising development, given that they paid a then-record $29 million fine for sanctions violations in October 2022 [W3IGG], shut down US operations in March 2023 [W3IGG], filed for bankruptcy in the US in May [W3IGG], and then paid $24 million to settle a lawsuit from the US SEC in August [W3IGG].
There’s been one more unfortunate event for Coin Cloud, to add to the whole series of them I wrote about in February [I19]. Hackers have claimed to have exfiltrated private information belonging to around 300,000 of the crypto ATM firms’s customers, and around 70,000 selfies taken by ATM cameras as a part of know-your-customer processes. The personal information includes details like social security numbers, dates of birth, names, and addresses. The hackers also claim to have obtained the company’s source code.
"What underpins your made up currency?"
" we have 1.2x coverage of diverse assets"
"What assets?"
" We have lots of these other made up currencies"
"What underpins them?"
" they have 1.2x coverage of diverse assets"
"What assets?"
" well for a start they have 1bn of our made up currency"
Some Gump said:
You almost couldn't make it up! I do wonder if there is a single crypto entity that would pass an audit. Hold on, i don't even wonder that much, i think the chances are too slim..
"What underpins your made up currency?"
" we have 1.2x coverage of diverse assets"
"What assets?"
" We have lots of these other made up currencies"
"What underpins them?"
" they have 1.2x coverage of diverse assets"
"What assets?"
" well for a start they have 1bn of our made up currency"
As the infamous Jenga scene from The Big Short puts it:"What underpins your made up currency?"
" we have 1.2x coverage of diverse assets"
"What assets?"
" We have lots of these other made up currencies"
"What underpins them?"
" they have 1.2x coverage of diverse assets"
"What assets?"
" well for a start they have 1bn of our made up currency"
"When the market deems a bond too risky to buy, what do you think we do with it?... We just repackage it with a bunch of other stuff that didn't sell... and when the pile gets large enough(quantity aspect of diversification), the whole thing is SUDDENLY considered DIVERSIFIED, and then the credit rating agencies give it a AAA rating, no questions asked!"
Next one is probably CryptoData, sponsors and 60% owners of the (former) RNF Aprilia MotoGP team, who have been thrown out of the series due to "Repeated infractions and breaches of the Participation Agreement affecting the public image of MotoGP". Not really sure what that refers to but rumours of financial difficulties with the team. Crypto, financial difficulties, surely not. It's been proven time and again to be a stable, trustworthy financial model.
Petrus1983 said:
b
hstewie said:
hstewie said: Sentenced to 25 years in prison.
Wow. The US doesn't fk around when it comes to financials. Didn’t Madhoff get three figures?
He probably didn’t realise what he was doing, just went on a roller coaster with his mates and thought too good to be true.
The ‘victims’ of his fraud, the ones with millions invested don’t really have my sympathy as greed drive their investment. They wanted greater gains and took huge risks. A couple of brits invested million plus on this… fools.
The ‘victims’ of his fraud, the ones with millions invested don’t really have my sympathy as greed drive their investment. They wanted greater gains and took huge risks. A couple of brits invested million plus on this… fools.
trickywoo said:
I don’t know what that actually means for time inside but I’m used to seeing 100s of years out of the us judicial system so this seems a bit meh.
Didn’t Madhoff get three figures?
85% of the time seems to be mentioned as the federal norm, but a former federal prosecutor reckons he might be able wangle 12.5. Didn’t Madhoff get three figures?
https://edition.cnn.com/business/live-news/sam-ban...
Shoulda got more. He doesn't appear to be capable of understanding that he damaged a lot of lives.
CrgT16 said:
He probably didn’t realise what he was doing, just went on a roller coaster with his mates and thought too good to be true.
The ‘victims’ of his fraud, the ones with millions invested don’t really have my sympathy as greed drive their investment. They wanted greater gains and took huge risks. A couple of brits invested million plus on this… fools.
He knew exactly what he was doing. It came straight in and he helped himself to it. The ‘victims’ of his fraud, the ones with millions invested don’t really have my sympathy as greed drive their investment. They wanted greater gains and took huge risks. A couple of brits invested million plus on this… fools.
I think anyone who chose to trust FTX was not at all sensible, but such a brazen thief clearly without any concept of a conscience should be put out of action and nailed to the wall.
Edited by bloomen on Thursday 28th March 18:07
trickywoo said:
I don’t know what that actually means for time inside but I’m used to seeing 100s of years out of the us judicial system so this seems a bit meh.
Didn’t Madhoff get three figures?
Madoff was always know to have upset the wrong 'community'. His sentence was 150 years imprisonment, forfeiture of US$17.179 billion, lifetime ban from securities industry. Didn’t Madhoff get three figures?
Lucky they added that lifetime securities industry ban or who knows what might have happened.
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