FTX Finally Files For Bankruptcy After Binance Refused Bailout

[mindrust]

 

This one made me giggle for like 10 seconds.

Back to the serious mode: I am sorry for those who lost money. But FTX.com? C'mon man. It was screaming "S C A M" right from the beginning. How teh fuck did it become that famous in the first place I don't even understand.

But then, back in the day btc-e was legit in my eyes and they went down too. So there isn't a secure exchange in this space imo. Any exchange can go down.

[Victorik]

This is happening at a very bad time. The market has been down for a long time now, and just when things were getting a little bit better, then this news.
It's really not good at all. Many newcomers who are just beginning to get interested in cryptocurrency will definitely be having a second thoughts.
I feel very bad for the investors also.

So looks like the chances of bull run this December isn't gonna be likely considering this latest happening of FTX's bankruptcy. This is why I would never going to store my crypto in exchanges. Not even in Binance even if it's so popular and widely used.

Slowly but surely, CZ is starting to take down big competitors like FTX. So I just don't know who's next on the list? Time will tell.

Yea, I don't think the bull run will happen anytime soon. A lot of persons are scared of what might happen next. There's a lot of FUD going on at the moment.

It is never a wise decision to store your crypto in an exchange. It is just too risky doing that, if they go bankrupt, your funds will go with it.

[BitcoinPanther]

The inevitable has finally happened!

This is going to have a massive effect in the entire crypto industry and probably even outside of it. Within the FTX group alone, there are already more than 130 companies and affiliated companies that are falling down.

Outside of this huge FTX group, there are also more than a hundred that will be severely affected. This is not even counting individual partners and individual fund holders in any of the FTX platforms and those platforms that are heavily invested in FTX.

Needless to say, this will cause a massive domino effect that would see the entire crypto industry losing trust and confidence among individuals, institutions, and governments.

And all this happens just when the market has already begun to see some nice improvements. Talking of bad timing!

It is inevitable, at least the market get rid of another vultures and scam company.  It is always a bloodbath whenever a system get rid of its adversities and often time lesson is learned the hardway.  After this chapter closes, people will learn more things that they have not learned when Mt. Gox goes down.  So I am not dishearten on this FTX fiasco event though I feel sorry for the victims,  I believe, after this dark times, the crypto market will shine more brighter than before  .

This is happening at a very bad time. The market has been down for a long time now, and just when things were getting a little bit better, then this news.
It's really not good at all. Many newcomers who are just beginning to get interested in cryptocurrency will definitely be having a second thoughts.
I feel very bad for the investors also.

So looks like the chances of bull run this December isn't gonna be likely considering this latest happening of FTX's bankruptcy. This is why I would never going to store my crypto in exchanges. Not even in Binance even if it's so popular and widely used.

Slowly but surely, CZ is starting to take down big competitors like FTX. So I just don't know who's next on the list? Time will tell.

Yea, I don't think the bull run will happen anytime soon. A lot of persons are scared of what might happen next. There's a lot of FUD going on at the moment.

It is never a wise decision to store your crypto in an exchange. It is just too risky doing that, if they go bankrupt, your funds will go with it.

Wait for 2024 some months before the halving, the market will start to rally which signifies the start of Bull Market.

[KingsDen]

-snip-

Whatever the case, have the principle that nothing is truly secure in crypto especially about centralized exchanges.

Nothing is truly secure even outside the crypto. The most important thing is to know the level of risk involved and the amount of money you are willing to lose. Banks close, insurance companies fail, money saved in your room can also be lost.

I also think CZ shouldn't be held responsible for another man's woes.

[Victorik]

The inevitable has finally happened!

This is going to have a massive effect in the entire crypto industry and probably even outside of it. Within the FTX group alone, there are already more than 130 companies and affiliated companies that are falling down.

Outside of this huge FTX group, there are also more than a hundred that will be severely affected. This is not even counting individual partners and individual fund holders in any of the FTX platforms and those platforms that are heavily invested in FTX.

Needless to say, this will cause a massive domino effect that would see the entire crypto industry losing trust and confidence among individuals, institutions, and governments.

And all this happens just when the market has already begun to see some nice improvements. Talking of bad timing!

It is inevitable, at least the market get rid of another vultures and scam company.  It is always a bloodbath whenever a system get rid of its adversities and often time lesson is learned the hardway.  After this chapter closes, people will learn more things that they have not learned when Mt. Gox goes down.  So I am not dishearten on this FTX fiasco event though I feel sorry for the victims,  I believe, after this dark times, the crypto market will shine more brighter than before  .

This is happening at a very bad time. The market has been down for a long time now, and just when things were getting a little bit better, then this news.
It's really not good at all. Many newcomers who are just beginning to get interested in cryptocurrency will definitely be having a second thoughts.
I feel very bad for the investors also.

So looks like the chances of bull run this December isn't gonna be likely considering this latest happening of FTX's bankruptcy. This is why I would never going to store my crypto in exchanges. Not even in Binance even if it's so popular and widely used.

Slowly but surely, CZ is starting to take down big competitors like FTX. So I just don't know who's next on the list? Time will tell.

Yea, I don't think the bull run will happen anytime soon. A lot of persons are scared of what might happen next. There's a lot of FUD going on at the moment.

It is never a wise decision to store your crypto in an exchange. It is just too risky doing that, if they go bankrupt, your funds will go with it.

Wait for 2024 some months before the halving, the market will start to rally which signifies the start of Bull Market.

Yea. I feel very bad for the victim too.

Well as per getting rid of another scammer, that's a good one, just that the repercussions of their dubious actions have seriously affected the mentally of investors and wannabe investors.

[JollyGood]

It has now been reported by Livemint that according to Reuters, the now collapsed FTX exchange owes over $3 billion to the top 50 investors. On average that equates to each one of those top 50 investors being owed $60 million each. There are other investors too.

On top of that, the exchange has around 1 million customers and their losses will also run in to billions of USD$ but the final figures of total losses have not yet been released.

It is mentioned FTX ex-CEO and founder Sam Bankman-Fried is currently in the Bahamas living in his $40 million mansion.

[JollyGood]

The latest news in the FTX collapse saga is that BlockFi (which recently collapsed as result of FTX collapsing) is going to sue Alameda Research which was operated by Sam Bankman-Fried. This matter is far from over because it seems every few days something else is released in the media which is connected to the FTX collapse.

[franky1]

so it seems someone got SBF to admit that the client assets that were not in some feature that gave consent to use funds as loans.. was not separated
thus those that just custodianised for non loan/margin/futures stuff that did not consent to their funds being loaned/margined/fractioned, had their funds co mingled in a wallet system that just allowed all users of all services to just take from the wallet(treating alemeda as a customer too), and thus stolen from the users that were not consenting to the margin/loan/futures stuff

i snipped the video to the important question and its only a 6:30 snip
https://www.youtube.com/embed/4o_jPzBZSIo?start=812&end=1140

SBF admits he didnt have code or separate wallets for users of separate services, it was all co mingled and he didnt even, in wake of crash try to separate the user types to be actually fair to user agreement terms of the non consent group. he just let "customers"(he treated alemedia as a customer) to just grab at the one wallet

..
in other interviews. he says after the collapse after withdraws were stopped,  that funds were juggled to make the non consent group of ftx.us whole and if the bankruptcy was to simply open up withdrawals that everyone could get their coin.. but thats looking less true as a separate statement, for other reasons

[JollyGood]

An update. FTX founder Sam Bankman-Fried has already entered in to some sort of arrangement to travel to the US without extradition by agreeing to be bailed under house arrest in Palo Alto at the home of his parents. The bail has been set at $250 million but since their home is not worth anything near that amount the deal included a bond where the collateral did not have to meet the bail amount.

Effectively, it seems he has been trusted to stay put at his family home until his court case ends on the basis he did not fight extradition.

[JollyGood]

Another update: According to cointelegraph, FTX made over $160 million in donations to over 110 charities and not-for-profit organisations and now those donations could be returned.

According to reports, Sam Bankman-Fried was the second largest CEO donor to the Biden presidential campaign in 2020 with $5.2 million. Imagine the Democratic Party or the Biden Camp being asked by FTX creditors (and backed by the criminal investigation team) for their $5.2 million in questionable donations to be returned. What will their response be?

[The Sceptical Chymist]

Imagine the Democratic Party or the Biden Camp being asked by FTX creditors (and backed by the criminal investigation team) for their $5.2 million in questionable donations to be returned. What will their response be?

Not sure what the value of their collective coffer is, but that might just be chump change for them.  And hey, they could just ask the Fed to print more money to cover the refund (lol).

Yeah, I heard this news as well.  Was it disclosed where the donation funds came from, i.e., was it from FTX's profits or did SBF use customer funds or something else? 

I hate the concept of lobbying; if you ever want a great example of centralized power, look no further than the big, big lobbyists, which would include everything from big pharma to the NRA.  If you've got enough money, you can easily get politicians in your pocket.  That's probably what SBF thought he was doing, and had he not been scamming the whole time he might have "influenced" politicians' views on crypto for the better (albeit in a corrupt way).

Whatta mess, eh?

[DaveF]

Another update: According to cointelegraph, FTX made over $160 million in donations to over 110 charities and not-for-profit and now those donations could be returned.

According to reports, Sam Bankman-Fried was the second largest CEO donor to the Biden presidential campaign in 2020 with $5.2 million. Imagine the Democratic Party or the Biden Camp being asked by FTX creditors (and backed by the criminal investigation team) for their $5.2 million in questionable donations to be returned. What will their response be?

That would be an interesting case, clawbacks are common in bankruptcy but never heard of one going back 2+ years.
Days / weeks / months are common. Sometimes even going back a full year, but over that I doubt it would happen.

Too many people would not want to go down that rabbit hole. Funds have been spent, books have been closed and so on.
Even with the Madoff case, they did go back but it was after a lot more then a few million. The time and effort and tacking of funds is too great.

-Dave

[JollyGood]

Not sure what the value of their collective coffer is, but that might just be chump change for them.  And hey, they could just ask the Fed to print more money to cover the refund (lol).

Yeah, I heard this news as well.  Was it disclosed where the donation funds came from, i.e., was it from FTX's profits or did SBF use customer funds or something else? 

I hate the concept of lobbying; if you ever want a great example of centralized power, look no further than the big, big lobbyists, which would include everything from big pharma to the NRA.  If you've got enough money, you can easily get politicians in your pocket.  That's probably what SBF thought he was doing, and had he not been scamming the whole time he might have "influenced" politicians' views on crypto for the better (albeit in a corrupt way).

Whatta mess, eh?

It is a massive mess. Sam Bankman-Fried pleaded not guilty in his recent court appearance in Manhattan but federal prosecutors have charged him with eight different criminal charges which could bring 115 years in prison if found guilty.

Current FTX CEO John Ray has said he will try to identify and clawback every investment made using customer funds. To me that basically means it includes every one of the donations it made to over 110 entities and includes all the investments in made over the years. There is a lack of clarity of those donations and investments came from the company (FTX) or from customer holdings.

You cited perfect examples of lobbying. I am not sure what Sam Bankman-Fried wanted to do by donating to a political party but he did share a stage with ex-president Clinton and got his 15 minutes of fame from that event. I think he got carried away living in a bubble knowing what was going on outside but preferred to live inside imagining it was all going to be alright.

That would be an interesting case, clawbacks are common in bankruptcy but never heard of one going back 2+ years.
Days / weeks / months are common. Sometimes even going back a full year, but over that I doubt it would happen.

Too many people would not want to go down that rabbit hole. Funds have been spent, books have been closed and so on.
Even with the Madoff case, they did go back but it was after a lot more then a few million. The time and effort and tacking of funds is too great.

-Dave

This the part that will be interesting to unfold. The 90 days prior to filing bankruptcy protection does not technically cover anything beyond 91 days but for the sake of avoiding negative publicity charities and politicians will probably be rushing to return donations.

I might have this wrong but what seems to be happening here is the new FTX CEO is trying to allege all investments and donations that were made via any money that originated from the FTX exchange were from customer funds and not from the company profits therefore they should be returned even if they were 2+ years old.

This will be a time consuming process for the investigators and a very painful one for investors. When you look at how long has the Cryptopia situation been going without a final resolution, you can get an indication this will go on for a very long time too.

The most valuable asset that did not go bankrupt after receiving investment from FTX was Robinhood and that is being dragged in to the bankruptcy proceedings too. The $500+ million investment from Bankman-Fried and ownership of shares purchased is being contested by various parties including BlockFi.