The forum does not directly advertise mixers, and has banned the participation of mixing services in forum advertising auctions for a long time. The forum is likely covered by section 230 when it comes to what its users chose to advertise on their signature.

Well there was a lot of data recovered by the FBI, so who knows what CM will eventually effectively be.

The selfies in the criminal complaint ("press release report") were given to various exchanges as part of their KYC process.

7 TB of data is a lot for a business like ChipMixer to have. I suspect that some of this is a copy of the blockchain, which was potentially replicated across multiple full nodes. It is also possible that, for whatever reason, this guy was keeping some information about his customers.

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I am not surprised by this. As with the case with SilkRoad, CM was not a success on the day it started, and as such, I presume the operator didn't think he would be as big of a target as he eventually became. It is unusual for law enforcement to devote substantial resources into investigating crimes done on a small scale, and he presumably didn't anticipate how successful CM would eventually become. It seems that he became more careful over time, for example, by requiring customers to only access the mixing portion of his site via tor.

I am sorry mindrust, but the mods have an unlimited amount of nukes available to them. When a mod nukes a newbie, all their posts will be removed and they will get banned, all in one click.

lol, I can assure you the person who sent the message is not telling the truth. I know it is unusual, but this is almost certainly an example of someone lying on the internet

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The PM in question is spam.

It will review the entire thread and remove offending posts.

UP

I think you are making a couple of flawed assumptions.

In Bankruptcy, Celsius will not be able to purchase their own debt, and the tokens in question would represent debt that celsius owes. Upon exiting bankruptcy, all debt will either need to be converted to equity, converted to new debt, or be repaid at a fraction (potentially 100%) of what is owed to debt holders.

While I agree that celsius debt tokens would likely initially trade for less than face value, I don't think it is realistic for Celsius to be able to repurchase large amounts of their debt at ridiculous discounts (that would not otherwise be possible) due to the issuance of debt tokens. Ignoring the above constraints, if Celsius were to start buying up their debt tokens in mass, the laws of supply and demand dictate that the price of the debt tokens would increase. Further, if Celsius were to buy up a lot of their debt tokens, it would be clear that someone is buying up a lot of their debt, however, if Celsius were able to somehow buy their debt tokens, they could also buy up their debt that is not tokenized, and they could do this much more quityly in private, which would allow them to buy at lower prices.

I would also point out that no one would be forced to sell their tokens at anything less than face value (except when Celsius were to exit bankruptcy).

That is not how I read how the token would work.

From what I understand, if Celsius owed someone 5BTC, they might convert that to 5000 token units, and give you 5000 token units that represent your 5BTC claim. If you held the 5000 token units, you would have the same claim as you previously did, but if you were to sell the token units, you would be giving up your claim and would be transferring the claim to whoever buys the token units.

Someone who does nothing with their token units would be in the same position as someone as what would have happened if Celsius had never issued any tokens. Someone who buys the tokens would have the same rights as someone described in the previous sentence.

I understand that Celsius would be unable to exit bankruptcy without satisfying the token units. This would be done either via Chapter 7 in which Celsius would redeem each token unit at the same amount, or via Chapter 11 via redeeming the token units for equity in the new company. This is the same as if Celsius had not issued any token.

I am not sure why you believe the motivation is greed on the part of Celsius. To my knowledge, Celsius would not receive any proceeds from the sale of said tokens.

Bitfinex allows their customers to lend their various coins to the platform with the purpose of facilitating margin trading. The current APR for short-term BTC loans is 0.035% per year.

In order for Celsius to convert to a Chapter 11 bankruptcy, management would need to convince the bankruptcy court that emerging from bankruptcy as a 'going concern' would produce better value to creditors than liquidating its assets.

The benefit is that creditors would not have to wait for the bankruptcy process to play out. If someone needs money today, they can sell their claim by selling their tokens. It is already possible for creditors to sell their claims today, but the pricing is opaque and it is difficult for sellers to know what buyers are generally willing to pay for their claims. So this token would improve transparency.

Celsius had mispriced interest rates for both deposits and loans. The likely reason for this was to prevent too many people from wanting to withdraw, so they could continue operations.

Mashinsky would presumably not be running a new version of Celsius, nor would most of the high-level executives/management.

Celsius is essentially a bank, and there are many banks that have a long history of being able to operate profitably.

A QR code is effectively a string of text depicted as an image. In theory, a QR code can potentially cause whatever device is being used to scan the code to run arbitrary code on said device, however, QR codes are limited to about 7000 characters of text. If someone could cause whatever program being used to scan the QR code to escape any safeguards, access some website, and run arbitrary code on said website, then any code could potentially be executed via a malicious QR code.

Nah.

Bringing minors, especially young children to the forum will not lead to positive outcomes.

By all accounts, it appears that SBF is a very talented person, but that does not mean that he is able to break the law with impunity. Based on information available and accusations that I deem reasonable, it appears that SBF made some decisions that lead to FTX losing billions of dollars of customer money, and in the process, I understand that SBF broke laws.

RU/DPR also made decisions that led to SR1 customers losing money. Although the FBI seized all of SR1's coin, at the time, SR1 was shut down, I understand it was insolvent. This is in addition to the murder-for-hire issues that others have mentioned that RU/DPR allegedly was involved in (some of this may have been entrapment, however, I am not bound by the constitution when it comes to forming my personal opinion). RU/DPR was involved in drug trafficking, which ultimately leads to many people suffering, and dying.

I think both deserve serious jail time. SBF is politically connected, so I wouldn't be surprised to see him either get a sweetheart deal or the case thrown by the DOJ. I don't think it was an accident that SBF was spending so much on Democrats.

The tokens allow creditors to trade their claim against Celsius in a transparent way via an open market. The tokens would eventually be redeemed either for cash in the event of a liquidation, or for equity in the event that Celsius emerges via Chapter 11.

This isn't something for creditors to decide, nor for you to decide. If management can show the bankruptcy court that it can operate on a profitable operational basis, the bankruptcy court will likely allow for the case to be converted into a Chapter 11 reorganization case. My understanding is that Celsius had a small number of one-time events that caused it to become insolvent. I also understand that it mispriced both interest on deposits, and interest charged on loans, although this was likely to prevent a run on the bank.

As it stands now, anyone buying up claims from creditors can do so without the creditors knowing with certainty what others are receiving for their claims. It may be hypothetically possible for someone to be willing to offer $0.25 on the dollar for claims, but will initially offer $0.20 on the dollar, and will make a subsequent offer of $0.22 before finally offering $0.25. An open market for tokens will allow creditors to have more information about how much others are receiving for claims.

The token would exist to repay creditors, and would represent a claim against Celcius' assets.

Celsius is currently in Chapter 7 liquidation bankruptcy, the idea is that it would change to Chapter 11 bankruptcy and would resume operations.

There are presumably already hedge funds, and other entities buying up claims from former customers, this token would make the pricing of the debt more transparent.

Based on the article, (and based on how bitfinex handled a similar situation), it looks like Celsius would issue one token to their creditors for each dollar the creditor is owed, and creditors would be able to sell the tokens on the open market to allow them to quickly recover something. I might compare this to a "normal" company allowing its bondholders to continue to trade a bankrupt company’s debt on the bond market, except in the case of celsius, there was no existing market prior to celsius filing for bankruptcy.

Presumably, celsius would also use a certain percentage of its operating income to repurchase these tokens at face value periodically. The article alluded to Celsius becoming a public company, so it may also be possible for tokenholders to convert their tokens to equity shares in Celsius at some predetermined value.

Celsius shouldn't be able to exit bankruptcy until all the tokens are disposed of, either via being redeemed at face value or being exchanged for equity. Although at one point, the bankruptcy court may mandate that token holders accept equity in exchange for their tokens.

I assume that hedge funds and others are currently trying to buy up bankrupty claims from creditors at below face value, so there are advantages to allowing for there to be an open market for these claims.

The ruling really doesn't change anything. It essentially means that any coin deposited to Celsius is an asset of Celsius, while a liability of a similar amount is also created. In other words, depositing coin on Celsius is a wash, although if Celsius is insolvent when (or after) the coin is deposited, the person depositing the coin would be receiving a liability worth less than the value of the coin they just deposited.

There's no hope. The NYAG is not going to be able to recover any substantial amount of money, even if she wins in court.

My understanding is that the bail is not much different than a signature bond. His parents put up their equity in their home (valued at roughly $3 million), and some third party made some kind of guarantee. SBF stands to lose very little if he ends up fleeing the country to avoid standing trial, although I think it is likely that he will wait to see the strength of the evidence before doing so.

Charging for access is common when some project is wanting to access a large amount of data. Commercial or otherwise, scrapers take up forum resources that are greater than the typical user, likely by a lot. Scrapers also have zero chance of even looking at any ads that are served upon forum users, which negatively affects forum revenue.