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

[NotATether]

Oh no, Justin Sun entered the arena, I think its a bad news.



Everything Justin Suns touches is going to be fucked
wink, trondex, and Sun token - he abandoned these projects, I can't believe that there are people believing trusting this guy.

USDD - probably next year its going to be another crypto news because people are investing in this ponzi game

Don't worry about it since he doesn't have any big liquidity to crash the market with. So we can afford having him start 100 projects and then abandoning them all after a short time  .

[1714935116]

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[1714935116]

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[Rikafip]

Looks like all those rumours from yesterday about some funds moving out of FTX were actually people from Bahamas being able to withdraw their money. I saw some reports of people trying to fake Bahamian IDs in order to go through KYC and get their money out of there.


https://twitter.com/FTX_Official/status/1590783569471115264

[stompix]

I saw some reports of people trying to fake Bahamian IDs in order to go through KYC and get their money out of there.

I seriously don't know why I'm smiling cause this is a serious thing and a lot of people will lose a ton of money, maybe their life savings or even worse but this whole situation right now is ridiculous.
Yesterday I was watching an interview with Sam and I was sure it was gold but I can't compete with the situation above

FTX still has $1 billion to deploy, says CEO Sam Bankman-Fried
https://www.youtube.com/watch?v=uGZrZq6z-Ig

Around minute 3, where he brags about how much money he has and how is set on the side, he actually wanted to let people know that he could easily have the backing for another 1 billion on top of the one claimed.

This Mofo was in a congress hearing, and he was reciting his story knowingly that behind the scene he was doing exactly the opposite.

[Rikafip]

FTX still has $1 billion to deploy, says CEO Sam Bankman-Fried
https://www.youtube.com/watch?v=uGZrZq6z-Ig

Around minute 3, where he brags about how much money he has and how is set on the side, he actually wanted to let people know that he could easily have the backing for another 1 billion on top of the one claimed.

That video didn't age well, and it was made only a month ago. I like how he was described there : JPMorgan/MJ or crypto, saving other companies, billionaire that drives Toyota Corolla and lives in with 10 roomates. This fucker deserves to go to jail, which I doubt will happen. After all, he didn't donate all those millions to Democrats for no reason.

Another amusing video, Alameda CEO : "we tend not to have stop losses". And those were the people in charge of billions of dollars.  
https://twitter.com/SimonDixonTwitt/status/1591009619790663681


In other news, SBF resigned from CEO position and FTX filed for bankruptcy.

https://watcher.guru/news/ftx-files-for-bankruptcy-as-ceo-sam-bankman-fried-resigns

[bitmover]

In other news, SBF resigned from CEO position and FTX filed for bankruptcy.

https://watcher.guru/news/ftx-files-for-bankruptcy-as-ceo-sam-bankman-fried-resigns

Just like Celsius,  it is very likely they will now release a document with all the client's name of those who make kyc and lost any money in this fiasco, as chapter 11 obligations

Exposing their privacy and savings and reputation.

[Darker45]

Just like Celsius,  it is very likely they will now release a document with all the client's name of those who make kyc and lost any money in this fiasco, as chapter 11 obligations

Exposing their privacy and savings and reputation.

At least for now, here are some of the projects that have funds stuck in either FTX investment or Alameda investment.



There will be many more of them considering that the FTX Group included in their bankruptcy filing some 134 companies and affiliated companies. These are just two of them.

I noticed some popular names in here. I've seen Nas Academy, Paxos, Circle, BlockFI, Mina Protocol, Sky Mavis, 1inch, BitOasis, and many more.

The fall of FTX Group could also mean the fall of some of these projects. And since some of these projects are lending companies, trust companies, or platforms that accept investments or simply money from their respective customers, the domino effect of FTX Group crumbling down is definitely massive.

I got this from a post by dwminer1. I don't know where he/she grabbed this from but it's indicated it's made by @WuBlockchain.

[Rikafip]

At least for now, here are some of the projects that have funds stuck in either FTX investment or Alameda investment.

I don't think that's list of companies that have their money stuck in FTX but rather companies that FTX/Alameda investment invested in as I've seen it being shared around. Some of them probably have money stuck there though.

The fall of FTX Group could also mean the fall of some of these projects. And since some of these projects are lending companies, trust companies, or platforms that accept investments or simply money from their respective customers, the domino effect of FTX Group crumbling down is definitely massive.

Not just projects, but more exchanges could go down with them as Alameda did shit load of market making for many. I've seen names like Huobi, Kucoin and Crypto.com being mentioned around as the next ones in trouble. Might be just FUD, but people shouldn't have any money on exchanges anyway.


Drama at FTX continues as someone transferred more than $400M and users are reporting that they see their balance at 0. Looks like an inside job tbh, given what's been happening lately.

Crypto exchange FTX is seeing millions of dollars flow out of its exchange with early reports of some user account balances being completely empty.

So far, over $400 million has been transferred to a single wallet address. The wallet has acquired tens of millions of dollars worth of several types of tokens by draining FTX accounts, and began selling tokens that it received from FTX.

FTX's general counsel Ryne Miller claimed the exchange is "investigating abnormalities with wallet movements related to consolidation of FTX balances across exchanges – unclear facts as other movements not clear. Will share more info as soon as we have it. @FTX_Official."

[o_e_l_e_o]

At least for now, here are some of the projects that have funds stuck in either FTX investment or Alameda investment.

Look at all the so called DEXs, DeFi projects, decentralized protocols and networks and wallets and markets and other DeFi scams which are listed there. Why are so many "decentralized" projects investing funds with centralized exchanges or depending on centralized exchanges for their revenue/funding? This kind of thing just confirms what I've said for a long time - DeFi is in no way decentralized and the whole thing is just one massive scam waiting to collapse, just like ICOs were in 2017 and just like some other shit will be in 2025.

I've seen names like Huobi, Kucoin and Crypto.com being mentioned around as the next ones in trouble. Might be just FUD, but people shouldn't have any money on exchanges anyway.

It doesn't matter if you are using some tiny local exchange owned by some guy who lives down the road from you, or you are using one of the largest global players like Binance or Huobi. If you still have coins on a centralized exchange after the shitshow of the last few months, then I have no idea what to even tell you.

[stompix]

And the list of companies that will get screwed by this won't stop to the crypto ecosystem




And of course:

The Heat were to receive $2 million a year as part of the deal. Most of the rest — roughly $90 million over the lifetime of the agreement — was to be paid to the county, the vast majority of it earmarked toward fighting gun violence and poverty.
FTX entered into a number of sports-related deals, including with Mercedes for Formula One racing and a sponsorship deal with Major League Baseball — whose umpires wear the company’s logo. Earlier Friday, Mercedes said it would immediately remove FTX logos from its Formula One cars.

Not even mentioning the millions that kept a few NGOs and politicians afloat and sponsored their campaigns, tens for sure if not hundreds of millions when this whole fiasco will start to be deciphered.

The fall of FTX Group could also mean the fall of some of these projects. And since some of these projects are lending companies, trust companies, or platforms that accept investments or simply money from their respective customers, the domino effect of FTX Group crumbling down is definitely massive.

It's about time the average cex user learns one small thing, all these companies are making money out of crypto user's pockets, they are making money out of fees, out of the price of their crypto investments going up if they manage to sell to somebody, and that's it. There is no other magical money-generating business, but a lot of other expenses, like the sponsorship mentioned above, like the wages of the staff, rent, server cost, and so on and on.

And when the money flow from the average investor is cut as they don't feel like buying or trading, the whole charade falls like a house of cards since there is no money to pay the expenses and generate the virtual income with which you've entrapped a lot of your older customer. The bull run to 60k created too much money, too many hyenas waning a piece, and too many companies battling for the same source of revenue, now that this has dried up, we have this.

[o_e_l_e_o]

It's about time the average cex user learns one small thing, all these companies are making money out of crypto user's pockets, they are making money out of fees, out of the price of their crypto investments going up if they manage to sell to somebody, and that's it.

You missed an important revenue stream. These companies are making money from lending out users' deposits without their knowledge or consent to a variety of shady, untrustworthy, and unreliable third parties, without proper (or indeed any!) guarantees or collateral. When one of these third parties exit scams, your coins are gone. When one of these third parties goes bankrupt, your coins are gone. When one of these third parties stop paying back their loan for any reason, your coins are gone. And of course, whenever a lot of people try to withdraw their coins at once, the exchange gets caught out in a fractional reserve bank run, has to freeze withdrawals, their token price tanks, and they end up insolvent.

If centralized exchanges actually only earned from trading and withdrawal fees, and otherwise just held user deposits in cold storage, we wouldn't be in this mess in the first place. But they are all far too greedy for that. Anything you deposit on a exchange could end up in the hands of any third party anywhere in the world, and you have no idea its even happening until you discover you've lost everything.

[Don Pedro Dinero]

As I have commented on our local forum, it seems that today's sharp drop is due to problems with the crypto.com token.

Apart from FTX, crypto.com, Gate.io and Huobi are in trouble. The most relevant is that yesterday they had to prove their liquidity and were making transfers of large amounts, which in some cases they attribute to an error.

CZ hinting at Crypto,com and Gate,io not being safe after weird transactions taking place.

➡️ I recommend taking your money out of these platforms. There is no reason whatsoever to keep your coins there, especially amidst all of this.

So we see that, over time, unfortunately, o_e_l_e_o's advice is confirmed as more and more correct.

[o_e_l_e_o]

-snip-

I already predicted this exact thing happening with this proof of reserve bullshit which is starting to come out: https://bitcointalk.org/index.php?topic=5419710.msg61263655#msg61263655

And indeed, this exact thing has already happened in the past with proof of reserve for stablecoins: https://bitcointalk.org/index.php?topic=5322147.msg56656992#msg56656992

The summary of that post is that on various occasions when Tether were being audited for their proof of reserves, they pulled a variety of scams to hide the fact that they were (and continue to be) insolvent. On the morning of one audit, they opened a brand new bank account and then immediately received $400 million from Bitfinex in to that bank account so they could pass their audit. On another occasion, the day after passing an audit they transferred almost $500 million out to Bitfinex.

Centralized exchanges will do the exact same thing, and indeed you've pointed out the fact that they are already doing this within the first few days. The difference now being that these movements can be traced using blockchain data. And don't forget of course that proof of reserves is meaningless when we don't know what their liabilities are.

Proof of reserves proves nothing other than exchanges' ability to continue to trick their users. Get your coins off all centralized exchanges ASAP.

[NotATether]

It appears that SBF and a few other FTX execs under watch in the Bahamas are trying to flee to the UAE.

I'm thinking this guy is going to get a ton of jail time once the latest black swan settles down.

[stompix]

~.

You missed an important revenue stream. These companies are making money from lending out users' deposits without their knowledge or consent to a variety of shady, untrustworthy, and unreliable third parties, without proper (or indeed any!) guarantees or collateral.

True, and normally I would have listed this as a perfectly legal way of running a business.
But after the Celsius fiasco, I understood nobody uses these lending features as it was supposed to, you pay interest 5% on the use coins you charge 10% when lending and the whole customer base is just as you say, no real business which needs real-life funds available, but just guys  playing with leverage and arbitrage or whatever, and these guys I bunched them together in the "investor" category as they too have started to pack bags once the market turned full bearish.

As I have commented on our local forum, it seems that today's sharp drop is due to problems with the crypto.com token.

Apart from FTX, crypto.com, Gate.io and Huobi are in trouble. The most relevant is that yesterday they had to prove their liquidity and were making transfers of large amounts, which in some cases they attribute to an error.

Oh lol, crypto.com, the other one spending left and right, another stadium, a formula one car, and the FIFA world cup losing a sponsor.
How much money have they printed out of thin air and how much of their user funds have they spent on all this crap?
Crypto com started pulling out of sponsorships between June and September, they claimed regulations, which is petty stupid, seems like knew once Terra Celsius collapsed that they don't have that money either.

I would empty all my accounts right now, no matter what the exchange is, no matter how SAFU they claimed to be.



 

[Arkyo]

F#ck FTX, my poor dep 
It's gonna be a long story to get my fudns back, MTGOX2

[o_e_l_e_o]

True, and normally I would have listed this as a perfectly legal way of running a business.

It can be, when it is done in a sensible and considered manner, with proper vetting of third parties and their ability to repay loans, proper guarantees and collateral, proper amounts of funds kept in reserve, and so on. But that's not what centralized exchanges and lending platforms have been doing, as we have seen repeatedly over the last few months. Rather, they essentially gamble users' money away with uncollateralized loans and risky investments. But they make billions of dollars in doing so and its the users who lose everything when it all goes to shit.

I would empty all my accounts right now, no matter what the exchange is, no matter how SAFU they claimed to be.

The writing has been on the wall for months. Everyone should have withdrawn all their coins back in June when the first dominoes started to fall. Still having funds on FTX when it went under was very naive. Still having funds on any centralized platform right now is just plain stupid; there's no other word for it.

[stompix]

If you want comedy, but really bad comedy, cringe stuff, just look at SBF tweets:
https://mobile.twitter.com/SBF_FTX/status/1591989554881658880



Yeah, he did a tweet with each letter of what h a p p e n e d!
I just wonder, the people that worked with him day and night as he had 20 roomies in his 40 million Bahamas home, or the ones observing all this, they didn't realize the guy is nuts?
When I see now how he is acting he seems like a child in kindergarten that thinks his pet giraffe has died and one bar of chocolate baked in his Barbie even will make it come to life!

Just look at the plan:

15) A few weeks ago, FTX was handling ~$10b/day of volume and billions of transfers.
But there was too much leverage--more than I realized.  A run on the bank and market crash exhausted liquidity.
So what can I try to do?  Raise liquidity, make customers whole, and restart.

So he will raise 8 billion from investor money and pay back the defrauded customers, doesn't he realize what he is actually proposing? He is asking for investors' money to patch a Ponzi scheme?

[NeuroticFish]

If you want comedy, but really bad comedy, cringe stuff, just look at SBF tweets:

I didn't give it a second thought. My cat ends up on my keyboard too now and then.

So he will raise 8 billion from investor money and pay back the defrauded customers, doesn't he realize what he is actually proposing? He is asking for investors' money to patch a Ponzi scheme?

They've done this until now too, isn't it? They did it probably without knowing it, but probably this kind of "tiny details" don't matter for SBF.

[bbc.reporter]

If you want comedy, but really bad comedy, cringe stuff, just look at SBF tweets:
https://mobile.twitter.com/SBF_FTX/status/1591989554881658880

This might be if Sam is taken to court he can plead insanity hehehe. There are other rumors that are spreading in social that Sam used stimulants and encouraged his employees  also to use them to be more productive. There would be a lecture about different stimulants and he let his employees choose which one they like.

There are others who also say that Sam is in a romantic relationship with Caroline Ellison the cofounder and CEO of Alameda Research.

[stompix]

~

I didn't give it a second thought. My cat ends up on my keyboard too now and then.

If you see it jumping the fence with a USB drive in its mouth then trust me, your keys are gone!  

There would be a lecture about different stimulants and he let his employees choose which one they like.

Oh god, when you said stimulants I thought we were talking about paychecks, he would give them bonuses and let them invest to asses their abilities, not this stimulus.

There are others who also say that Sam is in a romantic relationship with Caroline Ellison the cofounder and CEO of Alameda Research.

Ok, I'm not going to judge everything about a person, if they are into this, they are, that's their business and their choice but that's for your personal life, when you combine those two and this kind of thing happens:

According to a bombshell report by CoinDesk, Ms Ellison and Mr Bankman-Fried were part of a “cabal of roommates” who ran the crypto empire and “dated” each other, while living in a $US40 million penthouse in the Bahamas’ exclusive Albany resort.
Also living in the house were FTX co-founder and chief technology officer Gary Wang and director of engineering Nishad Singh. “All 10 are, or used to be, paired up in romantic relationships with each other,” CoinDesk reported.

this is beyond anything I've heard lately.
I'm the first one to call bs when one employee starts throwing sexual harassment lawsuits because a male employee looked at her in a way she didn't like, but this is going the other way beyond any limit.
So these guys were doing trading and loaning, founding and funding companies while gangbanging and smoking mushrooms.