FTX comedy and might be another exchange that bites the dust?

[bbc.reporter]

@stompix. It is very much not okay if the CEO of the exchange and the CEO of the quantfund that uses the exchange are dating. It might be $10 billion of FTX's funds that Sam transferred under the control of Caroline in Alameda. Much of this is depositors' money.

In any case, I thought the rumors of drugs and orgies were not true. However, this picture was leaked. But I cannot confirm if this is real.



There was also a rumor of a sex tape with Sam and Caroline.

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[o_e_l_e_o]

All the personal rumors aside, every new piece of information which comes out shows that FTX was possibly the most amateurish company which ever existed.

Their accounts show they were only holding $659,000, rather than the $5.5 billion SBF claimed. That's 0.01%. That has to be the smallest fractional reserve ever seen.

John Ray, the person who was appointed oversee the bankruptcy proceedings, filed a statement with the court on Thursday. Let's take a look at some of the best quotes: https://www.documentcloud.org/documents/23310507-ftx-bankruptcy-filing-john-j-ray-iii

I have over 40 years of legal and restructuring experience. I have been the Chief Restructuring Officer or Chief Executive Officer in several of the largest corporate failures in history.
...
Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.

The worst run company in history. Incredible.

Cash management procedural failures included the absence of an accurate list of bank accounts and account signatories, as well as insufficient attention to the creditworthiness of bank partners around the world.

Not only did FTX not know how much cash it had, but it didn't even know which bank accounts it had, who opened those accounts, or who those accounts were with.

At this time, the Debtors have been unable to prepare a complete list of whoworked for the FT Group as of the Petition Date, of the terms of their employment

So not only did they have no idea about what money they actually had, they didn't even know who worked for them?

I understand that corporate funds of the FTX Group were used to purchase homes and other personal items for employees and advisors.

Amazing. Your coins were literally being spent by individual employees on any old shit they liked. This is outright theft.

Unacceptable management practices included the use of an unsecured group email account as the root user to access confidential private keys and critical sensitive data

This is wild. For everyone who thinks that leaving coins on an exchange is more secure than in your own wallet, or completing KYC at an exchange is safe because they surely must have good security practices, read this sentence again. Then one more time. All your coins and data were protected by an unsecured group email account.

Absolutely incredible. This is a company which was reportedly the second biggest crypto exchange in the world. I would expect better management from a group of elementary school kids. If this is what is going on behind the scenes at FTX, then there is no telling what manner of things are going on behind that scenes are every other centralized exchange or platform out there.

Just to recap - they didn't keep track of any assets, they didn't even keep track of who worked for them, and anything you deposited was simply being spent by employees on personal items. This isn't a failed exchange - this is an outright scam.

If you keep anything on any centralized exchange after these revelations, then sorry, but you are a moron.

[bbc.reporter]

@o_e_l_e_o. Sam is a scammer, there are other information being discovered that Sam took money from the investors and used them somewhere else. This is misappropriation use of funds and there are laws that can be used to charge Sam and Caroline and send them to prison.

I am beginning to think that FTX was never created to be an exchange. It was created to be a scheme to be used by some very big players in politics.



Also, watch this.

https://mobile.twitter.com/Hedgeye/status/1591240664779743232

[NotATether]

And while doing all this they out the strictest KYC controls on people like us and they have the audacity to confiscate user funds to enrich themselves? Hypocrisy!  

All the personal rumors aside, every new piece of information which comes out shows that FTX was possibly the most amateurish company which ever existed.

Their accounts show they were only holding $659,000, rather than the $5.5 billion SBF claimed. That's 0.01%. That has to be the smallest fractional reserve ever seen.

These exchange scammers had better bunk up with Do Kwon, wherever he is hiding, before they all (rightfully) get jailed.

[o_e_l_e_o]

And while doing all this they out the strictest KYC controls on people like us and they have the audacity to confiscate user funds to enrich themselves? Hypocrisy!  

Considering that FTX employees were able to simple help themselves to customers' funds in order by themselves houses and other personal items, you can only assume that their security surrounding KYC documents was similarly lax. As I pointed out above, it seems that "sensitive data" was being held in a "unsecured group email account". Given that, then anyone who completed KYC on FTX should assume that all their personal data and whatever documents they uploaded are at the very least in the hands of some of their scamming employees, if not out in the wild altogether.

If you have completed KYC on any exchange ever then (given the number of database hacks/leaks) you should, at the very least, regularly check your credit report to make sure that no scammer is using your identity to open fraudulent accounts or take out loans. But in the case of a proven scam like this one, I would suggest that you both place a credit freeze on yourself so no one can open new accounts with additional checks and authorizations, and also log the issue with your local law enforcement so you have some recourse if you do suddenly end up on the hook for $100,000 in debt you didn't take out.

[bbc.reporter]

A thread from someone on Twitter that lists all questionable actions by Sam and FTX for those who have not been following this news. These are not rumors anymore but confirmed information found in FTX's bankruptcy filing and they are very head shaking.

There were those people who said that this man cannot be trusted when I posted this picture. I thought they were only being stupid, however, I should have listened to them hehehehehe.





FTX FILLED ITS BANKRUPTCY FILLING TODAY

IT IS EVEN WORSE THAN ANYONE IMAGINED AN OVERVIEW

1) FTX LENT SAM BANKMAN OVER $1 BILLION DOLLARS FOR PERSONAL USE

2) FTX USED CUSTOMER FUNDS TO BUY HOUSES FOR EMPLOYEES

3) FTX DIDNT HAVE A LIST OF EMPLOYESS AND WHAT ALL THEY DID

4) FTX DID NOT KEEP ANY BOOKS OR RECORDS OF ITS DIGITAL ASSETS

5) ALAMEDA RESEARCH WAS EXEMPTED FROM AUTO LIQUIDATION ON FTX

6) FTX BUILT A SOFTWARE TO HIDE THE MISUSE OF CUSTOMER FUNDS

7) FTX HAD $400 MILLION IN UNAUTHORIZED TRANSFERS THE DAY THEY FILED FOR BANKRUPTCY

 FTX HAD BILLIONS IN INVESTMENTS OTHER THAN CRYPTO BUT THERE ARE NO BOOKS OR RECORDS OF ANY OF IT.

9) SAM BANKMAN MADE ALL BUSINESS DECISIONS ON APPS THAT AUTO DELETED EVERYTHING AFTER SOME TIME

HE ENCOURAGED ALL EMPLOYEES TO DO THE SAME

Source https://mobile.twitter.com/gurgavin/status/1593292792582635520

[JeromeTash]

5) ALAMEDA RESEARCH WAS EXEMPTED FROM AUTO LIQUIDATION ON FTX

This particular one got me shaking my head. With all the data they had about the different position traders make when trading features, they even went far by exempting their positions from the auto-liquidation Engine. I remember  an interview where she claimed that stop losses were kind of stupid 

Watch and laugh 



This just goes to show the kind of manipulation that happens in exchanges. Who knows what Binance or gate.io does behind the scenes, for example

[bbc.reporter]

5) ALAMEDA RESEARCH WAS EXEMPTED FROM AUTO LIQUIDATION ON FTX

This particular one got me shaking my head. With all the data they had about the different position traders make when trading features, they even went far by exempting their positions from the auto-liquidation Engine. I remember  an interview where she claimed that stop losses were kind of stupid  

Watch and laugh  



This just goes to show the kind of manipulation that happens in exchanges. Who knows what Binance or gate.io does behind the scenes, for example

I watched that interview. The interviewers appear to have made it like it was her first couch interview for a porn video hehehee.

What was very head shaking was how they operated their business. They had all the advantages and the gaming cheats given to them, however, they ended their business with losing billions of dollars.

[o_e_l_e_o]

They had all the advantages and the gaming cheats given to them, however, they ended their business with losing billions of dollars.

It's a question I previously posed when Celsius collapsed - what was their exit strategy here?

SBF is clearly doxxed and well known, as is Caroline Ellison. As the court documents show, they kept no records of deposits, they didn't even know what bank accounts they had, and they simply helped themselves to customers' money for their own personal use. They must have realized that at some point people were going to try to withdraw funds which they had already spent and the whole thing was going to come crashing down? Surely they must have realized they were going to get found out eventually, no? The only other possibility is that they hoped that they could continue to attract enough new users to run it as a Ponzi for 50+ years until after they were both dead, which is just hilariously naive.

Imagine being in crypto and still trusting people like this with your coins instead of having them in your own wallet. It beggars belief.

[stompix]

Surely they must have realized they were going to get found out eventually, no? The only other possibility is that they hoped that they could continue to attract enough new users to run it as a Ponzi for 50+ years until after they were both dead, which is just hilariously naive.

I think their plan was simple, keep this up with investors pouring money into it, print more tokens, both in number and multiple types of tokens, and dig in till the bull season comes and be the first to take advantage, then with the money printed out of thin air cover the past loses.

And speaking of being dead before that, I'm pretty sure exchanges take advantage of coins left there for more than a few years and help themselves from the stash, thinking there are enough chances the guy will never come back, and if he does he won't be able to make a proof of funds to recovers his coins. Starbucks had $ 1.2 billion in their cards and apps, probably a ton of that balance was forgotten and will never be used again, for sure all the exchanges know that will happen to some of the customer's funds too, this is why some scammy ones decide to close down when in trouble and leave you only 1-2 months to reclaim the funds, hoping not everyone will get the message on time and will get all of it "legally".

[aysg76]

SBF is clearly doxxed and well known, as is Caroline Ellison. As the court documents show, they kept no records of deposits, they didn't even know what bank accounts they had, and they simply helped themselves to customers' money for their own personal use. They must have realized that at some point people were going to try to withdraw funds which they had already spent and the whole thing was going to come crashing down? Surely they must have realized they were going to get found out eventually, no? The only other possibility is that they hoped that they could continue to attract enough new users to run it as a Ponzi for 50+ years until after they were both dead, which is just hilariously naive.

Imagine being in crypto and still trusting people like this with your coins instead of having them in your own wallet. It beggars belief.

Exactly they were not expecting this reality to be out soon and keep on the same way till the time CZ decided to dump the FTT token and whole balance sheet got leaked causing the crash of the FTX and another scam which involved $600 million of funds stolen is great way to cover up your story and gain funds in your custody.At this time SBF is under government supervision but yes they were trying to scam people as much possible through the exchange working.They had in mind that they can use your funds as not whole people are coming up for withdrawal and even if they show up they will be imposed with restrictions but the whole scenario got worst when cover for Sam was blown and now he is on the run.

People keeping up their coins with these exchange have learnt their another lesson that what it seems might not be the case and there is lot of scam here until you take custody of your funds with yourself because others will try to scam you always.

[dkbit98]

SBF is clearly doxxed and well known, as is Caroline Ellison. As the court documents show, they kept no records of deposits, they didn't even know what bank accounts they had, and they simply helped themselves to customers' money for their own personal use.

I think it's very obvious that Sam and Caroline are just puppets in this game controlled by bigger players, they both came out from nowhere and made exchange with top volume in just few months.
This is not even possible in Disneyland and fantasy cartoons, especially when we know their connection with various politicians, and supporting creation of other shitcoins.
Either this, or both of them are plain stupid if they thought they can continue doing stuff like this, it's like combination of Theranos and cult like Nexivm, but in crypto style

I think their plan was simple, keep this up with investors pouring money into it, print more tokens, both in number and multiple types of tokens, and dig in till the bull season comes and be the first to take advantage, then with the money printed out of thin air cover the past loses.

Problem is that nobody knows exactly when bull and bear run is going to start and finish.
People also though Theranos and Nexivm were great, heck some people still think they are great.



All scammers in Forbes  

[bbc.reporter]

They had all the advantages and the gaming cheats given to them, however, they ended their business with losing billions of dollars.

It's a question I previously posed when Celsius collapsed - what was their exit strategy here?

SBF is clearly doxxed and well known, as is Caroline Ellison. As the court documents show, they kept no records of deposits, they didn't even know what bank accounts they had, and they simply helped themselves to customers' money for their own personal use. They must have realized that at some point people were going to try to withdraw funds which they had already spent and the whole thing was going to come crashing down? Surely they must have realized they were going to get found out eventually, no? The only other possibility is that they hoped that they could continue to attract enough new users to run it as a Ponzi for 50+ years until after they were both dead, which is just hilariously naive.

Imagine being in crypto and still trusting people like this with your coins instead of having them in your own wallet. It beggars belief.

All of the information about Sam and Caroline is making FTX and Alameda Research appear to be a scam and a ponzi scheme that was created to launder money for some of the biggest political groups within the Democratic party. Read everything about Sam Bankman-Fried's mother and Caroline Ellison's father. All of them have connections to the the government and the Biden administration.

Also, watch the interview in this tweet.

https://mobile.twitter.com/Hedgeye/status/1591240664779743232

[o_e_l_e_o]

I think their plan was simple, keep this up with investors pouring money into it, print more tokens, both in number and multiple types of tokens, and dig in till the bull season comes and be the first to take advantage, then with the money printed out of thin air cover the past loses.

Which as I said is just hilariously naive. All Ponzi's collapse eventually, and when you are a publicly doxxed head of one, you won't be able to escape that.

I'm pretty sure exchanges take advantage of coins left there for more than a few years and help themselves from the stash

Sure, but that's never going to be enough to cover the billions of dollars worth of customers' crypto they simply helped themselves to.

Either this, or both of them are plain stupid if they thought they can continue doing stuff like this

Before this FTX debacle I hadn't watched interviews with either of them because I simply didn't care, but having watched some now they certainly both come across very amateurish and not particularly well thought out in their opinions or positions. I wonder if many FTX users bothered to investigate them before depositing coins to their scam.

[dkbit98]

Before this FTX debacle I hadn't watched interviews with either them because I simply didn't care, but having watched some now they certainly both come across very amateurish and not particularly well thought out in their opinions or positions. I wonder if many FTX users bothered to investigate them before depositing coins to their scam.

Well I have to admit and say that I used them few times for small amount of coins, only because they didn't have any fees for withdrawing Bitcoin, and I didn't have to pass any kyc verificatrion.
I withdraw my few sats in last moments, and I think that few hours after that all withdrawals got halted and stopped, so I didn't lost any coins in this fiasco
This was just my risky experiment and testing, and I don't suggest anyone to hold coins in centralized exchanges at all.

[bbc.reporter]

News update. The FTX comedy show continues.

I cannot understand what the lawyers are doing. Alameda Research wants to sue and receive $445 million from Voyager for funding Alameda when Caroline Ellison needed more liquidity for her gambling addiction?This is head scratching. There should be a hidden agenda there somewhere unless I misunderstood everything.



FTX-linked Alameda Research sues Voyager Digital for over $445M

Lawyers are seeking to recover funds that Alameda Research paid to Voyager after the crypto lender filed for bankruptcy protection in July and before Alameda Research filed for bankruptcy protection.

“Largely lost in the (justified) attention paid to the alleged misconduct of Alameda and its now-indicted former leadership has been the role played by Voyager and other cryptocurrency ‘lenders’ who funded Alameda and fueled that alleged misconduct, either knowingly or recklessly,” lawyers for FTX and Alameda wrote in the filing.

Source https://www.theblock.co/post/206907/ftx-linked-alameda-research-sues-voyager-digital-for-over-445m

[virasog]

News update. The FTX comedy show continues.

I cannot understand what the lawyers are doing. Alameda Research wants to sue and receive $445 million from Voyager for funding Alameda when Caroline Ellison needed more liquidity for her gambling addiction?This is head scratching. There should be a hidden agenda there somewhere unless I misunderstood everything.

Sometimes i feel that all these firms including FTX, Alameda Research, Voyager etc are playing with people's emotions and showing that how strong they are and how weak we are.
They can bring any bullS**t news which have no common sense. They think they have all the rights to fool the retailers and those who showed trust in these firms.

We opted for bitcoin over fiat, we believed in decentralization, but all these centralized platforms are playing dirty games with us.  

[bbc.reporter]

FTX will unbite the dust?

It appears that FTX might return and it might be operational before the end of 2024. It is rumored that among the creditors are the whales of the cryptospace who have an interest to witness it come back from death. I speculate those whales have hundreds of millions of their own money that they cannot withdrawn unless FTX is back to profitability.

However, will the community consider the return of FTX a bullish occurrence or a bearish one?

Also, a news update. FTX is suing Sam heehehhehe.



Failed crypto exchange FTX is suing co-founder and former Chief Executive Sam Bankman-Fried and others, seeking to claw back about $240 million related to the company’s acquisition of stock-trading platform Embed.

In a filing Wednesday in U.S. Bankruptcy Court in Delaware, FTX claimed Bankman-Fried and others — including FTX co-founders Zixiao Wang and Nishad Singh — conducted little to no due diligence and rushed the $240 million acquisition ahead of FTX’s collapse last November.

The lawsuit claimed money for the Embed acquisition came from Alameda Research, FTX’s affiliated hedge fund, which had illegally diverted assets belonging to FTX — constituting fraud.

Source https://www.marketwatch.com/story/ftx-sues-sam-bankman-fried-and-others-seeking-to-claw-back-240-million-from-embed-deal-26ee5565

[bbc.reporter]

News update.

Temasek Holdings, an investment company from Singapore will reduce the compensations of the team that recommended the company to invest in FTX hehe. It clearly was a disappointment. Everyone thought that Sam would change how the cryptospace game is played with their sponsorships on sports teams, sports stars and sports stadiums. FTX was everywhere from Formula 1 to NFL and the NBA. I reckon if only Sam played by the rules and with Binance running from the regulators, FTX might have become the biggest exchange in the cryptospace by 2026.



Temasek, as an investor-owner, seeks to deliver sustainable returns over the long term. While there are inherent risks whenever we invest, we believe that we have to invest in new sectors and emerging technologies to understand how these areas may impact the business and financial models of our existing portfolio, and whether they would be drivers of future value in an ever-changing world. This is why we invest into early stage companies.

With FTX, as alleged by prosecutors and as admitted by key executives at FTX and its affiliates, there was fraudulent conduct intentionally hidden from investors, including Temasek. Nevertheless, we are disappointed with the outcome of our investment, and the negative impact on our reputation.

An independent team has conducted an internal review of the investment and the findings were directly presented to the Board Risk & Sustainability Committee and to our Board. Although there was no misconduct by the investment team in reaching their investment recommendation, the investment team and senior management, who are ultimately responsible for investment decisions made, took collective accountability and had their compensation reduced.

Source https://www.temasek.com.sg/en/news-and-resources/news-room/statements/2023/our-chairman-statement-on-ftx-internal-review