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

[Rikafip]

I thought that SBF's ex-girlfriend would avoid prison altogether due to ratting him out, but I guess that won't be the case, as she was sentenced to 2 years in prison today. It will of course be in a minimum security prison, but better that than nothing.  

Former co-CEO of Alameda Research Caroline Ellison was sentenced on Tuesday to two years for her role in the collapse of crypto exchange FTX which caused consumers to lose billions of dollars.

Ellison, who is also the ex-girlfriend of former FTX CEO Sam Bankman Fried, pled guilty in December 2022 to two counts of conspiracy to commit wire fraud, two counts of actual wire fraud, one count of conspiracy to commit commodities fraud, one count of conspiracy to commit securities fraud and one count of conspiracy to commit money laundering. Alameda Research had close ties to FTX, and both were founded by Bankman-Fried.

Ellison will also have to forfeit about $11 billion and can serve her sentence at a "minimum- security facility," according to Bloomberg.

Ellison addressed the court on Tuesday and said she wanted to apologize to those who lost money because of her actions. She said “not a day goes by that I don’t think about all of the people I hurt,” according to reporting from Bloomberg.

[bbc.reporter]

@Rikafip. She was the biggest cause on why FTX used customer funds. It was her mismanagement of Alameda Research's trades which were very much over the limit of normal leverage for the amount of liquidity that they have used. I am not quite certain how she has convinced Sam to transfer customer funds to use as cashflow to save their trades.

Also, if CZ did not dump FTT and caused the big fear in the cryptospace, I speculate that FTX might have survived the bear market. CZ might have done this to kill FTX, I reckon. He might have pretended to help the exchange to get entry on their accounting books to gather information on their balance sheet hehehehh.

[Rikafip]

I am not quite certain how she has convinced Sam to transfer customer funds to use as cashflow to save their trades.

Men are willing to do very stupid things in order to get some pussy. 

Also, if CZ did not dump FTT and caused the big fear in the cryptospace, I speculate that FTX might have survived the bear market. CZ might have done this to kill FTX, I reckon. He might have pretended to help the exchange to get entry on their accounting books to gather information on their balance sheet hehehehh.

Imo, CZ only sped up something that would have happened sooner or later. It's better that it happened sooner because FTX was constantly growing, and even more people would have lost their money if it had happened 2-3 years later.

[examplens]

Also, if CZ did not dump FTT and caused the big fear in the cryptospace, I speculate that FTX might have survived the bear market. CZ might have done this to kill FTX, I reckon. He might have pretended to help the exchange to get entry on their accounting books to gather information on their balance sheet hehehehh.

Imo, CZ only sped up something that would have happened sooner or later. It's better that it happened sooner because FTX was constantly growing, and even more people would have lost their money if it had happened 2-3 years later.

I am quite suspicious of any of their intentions, even if CZ had not brought them down and if they had survived the bear market, they would certainly have done more damage over time. These days they are quite current, so there are several examples of their business policy.
It was first announced that on September 30, the payment of the 16 billion debt will begin. Otherwise, it caused a huge jump in FTT tokens. It has now been moved to October 7 for amounts under $50k
It turned out that they would pay out money, but at the prices that were at the time of the FTX collapse, Bitcoin was then $16,500. Thus, creditors will receive 10%-25% compared to what they would have today.

Now they were restructuring and a decision was made to pay $230 million to shareholders, although they should be at the end if it comes to bankruptcy proceedings. 
Link

[bbc.reporter]

I am not quite certain how she has convinced Sam to transfer customer funds to use as cashflow to save their trades.

Men are willing to do very stupid things in order to get some pussy. 

Also, if CZ did not dump FTT and caused the big fear in the cryptospace, I speculate that FTX might have survived the bear market. CZ might have done this to kill FTX, I reckon. He might have pretended to help the exchange to get entry on their accounting books to gather information on their balance sheet hehehehh.

Imo, CZ only sped up something that would have happened sooner or later. It's better that it happened sooner because FTX was constantly growing, and even more people would have lost their money if it had happened 2-3 years later.

Agreed the exchange's survival is arguable. However, the bankruptcy of FTX was a certainty for me when I was reading the news about CZ on 2022 but to read these new articles presently, I reckon changes in the exchange with the help of CZ might have saved FTX. Nothing should be done for Caroline and Alameda Research, however. This trading division was the biggest disadvantage for FTX after Caroline has taken over after Sam Tabasco retired.

[Rikafip]

Now they were restructuring and a decision was made to pay $230 million to shareholders, although they should be at the end if it comes to bankruptcy proceedings. 
Link

No wonder that an average Joe is the last in line and will get lefotovers from big players. Still hope that they see some of their money back, like people that got their money stuck with Celsius.

However, the bankruptcy of FTX was a certainty for me when I was reading the news about CZ on 2022 but to read these new articles presently, I reckon changes in the exchange with the help of CZ might have saved FTX.

Tbh, I didn't see it coming back in 2022 as everyone around me was telling m,e that they are "new Binance" , SBF "new CZ" etc. Thankfully, I never touched FTX but unfortunately bunch of my friends had money there.

[bbc.reporter]

@Rikafip. I was speculating that something was very much wrong in the exchange when someone leaked part of their balance sheet to the cryptonews website Coindesk. What was shown in their balance sheet was their assets that they were holding were illiquid Solana tokens which Alameda Research used as collateral to get a loan from FTX. This loan was the customer funds heheheheh. I reckon if Caroline was a good trader this bankruptcy would not have happened.

[NotATether]

@Rikafip. I was speculating that something was very much wrong in the exchange when someone leaked part of their balance sheet to the cryptonews website Coindesk. What was shown in their balance sheet was their assets that they were holding were illiquid Solana tokens which Alameda Research used as collateral to get a loan from FTX. This loan was the customer funds heheheheh. I reckon if Caroline was a good trader this bankruptcy would not have happened.

I reckon if FTX had no whistleblowers and had its operational security in control instead of being ran like a frat party, they all would've gotten away with this massive ponzi scheme.

But they didn't, and that's good, because otherwise it might have gotten so big that there might not have been enough assets to make customers whole again (let's forget about BTC price increase speculation and the like).

[bbc.reporter]

@NotATether. I reckon if Alameda Research was not being supported by the exchange through the borrowing of customer funds, the exchange would be very much solvent without the need of funding or cashflow. The exchange was very profitable already and it was beginning to compete against Binance to become no.1 in the cryptospace.  If it was something similar to a frat party, there is nothing wrong with this, I reckon. Much of these technology companies has been very much casual in their offices. It was Alameda Research's trades with much leverage which used FTT and illiquid tokens to borrow FTX customer funds that placed them in a negative position. CZ also knew of this and he dumped FTT which liquidated all of Alameda Research's trades. Someone should put CZ back in prison hehehehehehehhee.