[Updated] FTX

[bbc.reporter]

If the bullrun would have continued for another two years, who knows how many billions more they would have embezzled.

Yep. If there is any positive thing about all this mess, its that it happened sooner than later because God knows how many more people would lose their money as FTX kept growing due their aggressive marketing, no withdrawal fees and other tactics to attract as many users as possible.


In other news, FTX confirms for the first time that 8.9 billion dollars of users money is missing so if there's anyone still hoping that they will ever see their money back, think again.

A recent report from the Wall Street Journal pointed out that $8.9 billion worth of customer funds have been unaccounted for and therefore missing.

This is the first time the exchange has revealed a number pertaining to the fund deficiency. The exchange has reportedly pinned down around $2.7 billion in customer assets, relative to $11.6 billion of the balance outstanding on customer accounts. The estimated value of FTX’s assets and liabilities is based on asset prices in November 2022, when the firm filed for bankruptcy.

Alameda Research had borrowed around $9.3 billion from customer accounts before bankruptcy. Thus, the current $8.9 billion hole can be attributed to Alameda Research. FTX did not clarify if the funds were borrowed with or without customer consent. According to a financial update filed, FTX’s sister company only had around $475 million in cash in its accounts as of Jan. 31.

Thus, at this stage, it cannot be anticipated how much compensation affected customers would receive, even though the exchange has tracked down $2.7 billion. However, around $1.5 billion of that said amount includes illiquid crypto assets like FTX’s token, FTT

There might be other types scams that might have occured. They might also sometimes be done on their own services similar to this hedgefund.

It is speculated that the founder of Multicoin capital has been selling his own cryptocoins and tokens to the hedgefund before the bubble pop of the bull market.



Multicoin Capital’s hedge fund lost 91.4% in 2022, according to a copy of the firm’s annual investor letter viewed by CoinDesk.

Source https://www.coindesk.com/business/2023/03/04/multicoin-capitals-hedge-fund-lost-914-last-year-investor-letter-reveals/

[1714285329]

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[1714285329]

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[Kryptowerk]

If the bullrun would have continued for another two years, who knows how many billions more they would have embezzled.

Yep. If there is any positive thing about all this mess, its that it happened sooner than later because God knows how many more people would lose their money as FTX kept growing due their aggressive marketing, no withdrawal fees and other tactics to attract as many users as possible.


In other news, FTX confirms for the first time that 8.9 billion dollars of users money is missing so if there's anyone still hoping that they will ever see their money back, think again.

A recent report from the Wall Street Journal pointed out that $8.9 billion worth of customer funds have been unaccounted for and therefore missing.

This is the first time the exchange has revealed a number pertaining to the fund deficiency. The exchange has reportedly pinned down around $2.7 billion in customer assets, relative to $11.6 billion of the balance outstanding on customer accounts. The estimated value of FTX’s assets and liabilities is based on asset prices in November 2022, when the firm filed for bankruptcy.

Alameda Research had borrowed around $9.3 billion from customer accounts before bankruptcy. Thus, the current $8.9 billion hole can be attributed to Alameda Research. FTX did not clarify if the funds were borrowed with or without customer consent. According to a financial update filed, FTX’s sister company only had around $475 million in cash in its accounts as of Jan. 31.

Thus, at this stage, it cannot be anticipated how much compensation affected customers would receive, even though the exchange has tracked down $2.7 billion. However, around $1.5 billion of that said amount includes illiquid crypto assets like FTX’s token, FTT

There might be other types scams that might have occured. They might also sometimes be done on their own services similar to this hedgefund.

It is speculated that the founder of Multicoin capital has been selling his own cryptocoins and tokens to the hedgefund before the bubble pop of the bull market.



Multicoin Capital’s hedge fund lost 91.4% in 2022, according to a copy of the firm’s annual investor letter viewed by CoinDesk.

Source https://www.coindesk.com/business/2023/03/04/multicoin-capitals-hedge-fund-lost-914-last-year-investor-letter-reveals/

That Multicoin Capital’s hedge fund news goes to show one of the scariest aspects of "crypto-space": The interdependence of many non-decentralized coins / tokens and platforms. If one fails, it will create a snowball effect that's hard to stop.
I think truely decentralized coins (there's just a handful, if at all), most and foremost Bitcoin, are less vulnurable towards these influences, however still take a hit when a big ship things, such as FTX.
Especially stablecoins - if they were to fail in a similar way as FTX - could bring down even Bitcoin by quite a bit for several months, up to a few years, worst case scenario.

[JayJuanGee]

If the bullrun would have continued for another two years, who knows how many billions more they would have embezzled.

Yep. If there is any positive thing about all this mess, its that it happened sooner than later because God knows how many more people would lose their money as FTX kept growing due their aggressive marketing, no withdrawal fees and other tactics to attract as many users as possible.
In other news, FTX confirms for the first time that 8.9 billion dollars of users money is missing so if there's anyone still hoping that they will ever see their money back, think again.

A recent report from the Wall Street Journal pointed out that $8.9 billion worth of customer funds have been unaccounted for and therefore missing.

This is the first time the exchange has revealed a number pertaining to the fund deficiency. The exchange has reportedly pinned down around $2.7 billion in customer assets, relative to $11.6 billion of the balance outstanding on customer accounts. The estimated value of FTX’s assets and liabilities is based on asset prices in November 2022, when the firm filed for bankruptcy.

Alameda Research had borrowed around $9.3 billion from customer accounts before bankruptcy. Thus, the current $8.9 billion hole can be attributed to Alameda Research. FTX did not clarify if the funds were borrowed with or without customer consent. According to a financial update filed, FTX’s sister company only had around $475 million in cash in its accounts as of Jan. 31.

Thus, at this stage, it cannot be anticipated how much compensation affected customers would receive, even though the exchange has tracked down $2.7 billion. However, around $1.5 billion of that said amount includes illiquid crypto assets like FTX’s token, FTT

There might be other types scams that might have occured. They might also sometimes be done on their own services similar to this hedgefund.

It is speculated that the founder of Multicoin capital has been selling his own cryptocoins and tokens to the hedgefund before the bubble pop of the bull market.

Multicoin Capital’s hedge fund lost 91.4% in 2022, according to a copy of the firm’s annual investor letter viewed by CoinDesk.
Source https://www.coindesk.com/business/2023/03/04/multicoin-capitals-hedge-fund-lost-914-last-year-investor-letter-reveals/

That Multicoin Capital’s hedge fund news goes to show one of the scariest aspects of "crypto-space": The interdependence of many non-decentralized coins / tokens and platforms. If one fails, it will create a snowball effect that's hard to stop.
I think truely decentralized coins (there's just a handful, if at all), most and foremost Bitcoin, are less vulnurable towards these influences, however still take a hit when a big ship things, such as FTX.
Especially stablecoins - if they were to fail in a similar way as FTX - could bring down even Bitcoin by quite a bit for several months, up to a few years, worst case scenario.

I don't really disagree with anything that you are saying Kryptowerk; however, we likely need to recognize and appreciate that a variety of monetary projects, whether complete scams or potentially having some value seems to be inevitable - and it is quite likely a lot of normies, or even rich peeps, institutions and governments might end up getting lured into (or taught about) bitcoin based on their fucking around (getting exposure) through other various projects, and like you mentioned some of those projects might have more basis for their value than others.

Another thing is that currently many of us (who are into bitcoin) are likely becoming more and more aware of the various ways that value is held, and surely some of the ways that value is held is more efficient than others, and surely there are other ways (besides pure monetary characteristics) that any asset might have value, such as a house has value to be lived in and even gold has some values in terms of being used in various industrial and/or jewelry purposes - and maybe another one that I could mention would be equities (stocks) in which there may well be (or should be) actual company value that is represented through the stocks in terms of their capital, good will, intellectual property, inventory or maybe even the kind of products/services that they sell.. and so in some regards, some kinds of assets will hold more kinds of ways in which they might be representing a kind of monetary value versus other kinds of value that they represent, and money is the same too.. in terms of some monies are more liquid than others and some monies are diluted more than others, so in that regard, sometimes making an assessment regarding the current price of any of these items versus their true value is going to be difficult to measure and frequently we will have to speculate in regards to the extent to which we might consider that they are over valued or under valued in comparison to their current price, and accordingly, it would seem that if we are trying to be aware and in touch with accurate assessments of price versus value, then we are going to want to hold and accumulate assets that are relatively low price versus their value in contrast to other assess that we might assess (or even guess) to be less valuable than their current price.

Surely some stable coins might have some value, but of course, when we get to unsound practices, such as what FTX was doing with their FTT token, we likely come to realize that the token did not have as much value as it was being held out to have - yet at the same time the information was asymmetric, and some people may have been gullible to be buying the coin, but at the same time, FTX agents (such as SBF and his other cronies/henchmen) were engaging in deceptive and misleading practices, so we cannot necessarily always blame the innocent folks from being deceived.. while at the same time, there may well have been obvious signs that FTX and its shenanigans were fraudulent.. but still easier to see in retrospect rather than sometimes there is value in places in which other people do not see the value.. but then sometimes there are scams going on, and sometimes even if we have high levels of confidence that we can make a lot of money from scams / fraudulent products, each of us still need to choose for ourselves the extent to which we want any of our money (or our profits) to come from those kinds of fraudulent products that seem pretty obviously built upon scamming and misleading others (even when they may well make a lot of money)...

To me, it seems like bitcoin remains as one of those places that many of us can recognize and appreciate that we have the ability to be both ethical and likely have really good chances to get richie as fuck at the same time, without even necessarily having to gamble or to put large quantities of our assets/value into it.. We can attempt to be reasonable, prudent and ethical and still have decently good chances of being rewarded for those kinds of behaviors.. even though of course, we should also appreciate that there are no guarantees that we are going to get rewarded or that bitcoin is going to pay off in the end, even though it does seem to be amongst the best, if not the best of asymetrical bets that are currently available to a large number of people .. even available to relatively poor people, so long as they are able to see it, recognize it and to at least take actions to ongoingly invest into it in reasonable and prudent ways that are personally tailored to themselves in a way that they might be aggressive/asssertive but without over doing it.

[bbc.reporter]

If the bullrun would have continued for another two years, who knows how many billions more they would have embezzled.

Yep. If there is any positive thing about all this mess, its that it happened sooner than later because God knows how many more people would lose their money as FTX kept growing due their aggressive marketing, no withdrawal fees and other tactics to attract as many users as possible.


In other news, FTX confirms for the first time that 8.9 billion dollars of users money is missing so if there's anyone still hoping that they will ever see their money back, think again.

A recent report from the Wall Street Journal pointed out that $8.9 billion worth of customer funds have been unaccounted for and therefore missing.

This is the first time the exchange has revealed a number pertaining to the fund deficiency. The exchange has reportedly pinned down around $2.7 billion in customer assets, relative to $11.6 billion of the balance outstanding on customer accounts. The estimated value of FTX’s assets and liabilities is based on asset prices in November 2022, when the firm filed for bankruptcy.

Alameda Research had borrowed around $9.3 billion from customer accounts before bankruptcy. Thus, the current $8.9 billion hole can be attributed to Alameda Research. FTX did not clarify if the funds were borrowed with or without customer consent. According to a financial update filed, FTX’s sister company only had around $475 million in cash in its accounts as of Jan. 31.

Thus, at this stage, it cannot be anticipated how much compensation affected customers would receive, even though the exchange has tracked down $2.7 billion. However, around $1.5 billion of that said amount includes illiquid crypto assets like FTX’s token, FTT

There might be other types scams that might have occured. They might also sometimes be done on their own services similar to this hedgefund.

It is speculated that the founder of Multicoin capital has been selling his own cryptocoins and tokens to the hedgefund before the bubble pop of the bull market.



Multicoin Capital’s hedge fund lost 91.4% in 2022, according to a copy of the firm’s annual investor letter viewed by CoinDesk.

Source https://www.coindesk.com/business/2023/03/04/multicoin-capitals-hedge-fund-lost-914-last-year-investor-letter-reveals/

That Multicoin Capital’s hedge fund news goes to show one of the scariest aspects of "crypto-space": The interdependence of many non-decentralized coins / tokens and platforms. If one fails, it will create a snowball effect that's hard to stop.
I think truely decentralized coins (there's just a handful, if at all), most and foremost Bitcoin, are less vulnurable towards these influences, however still take a hit when a big ship things, such as FTX.
Especially stablecoins - if they were to fail in a similar way as FTX - could bring down even Bitcoin by quite a bit for several months, up to a few years, worst case scenario.

You are comparing different things. The founder Kyle Salami can also have bitcoin and ethereum which he also dumped on his own hedgefund Multicoin Capital. Also, this might not only be happening in organizations similar to hedgefunds. Development teams of different Defi projects might also be dumping their own stake from the project to hold in the project's treasury.

[Creditor11]

https://ftxnetworth.com/00152360.htm

Who is this creditor that lost 3403454FTT ? ($75M)
It appears that he is also a FTX equity owner

[JayJuanGee]

https://ftxnetworth.com/00152360.htm
Who is this creditor that lost 3403454FTT ? ($75M)
It appears that he is also a FTX equity owner

Thanks for that link Creditor11 (and welcome to the forum), and I see that yesterday you had created a forum thread on the topic of that "leaderboard"  

I had not really been aware of that website, so I will look through your forum thread later today.. and see what members have to say about it...  (maybe in a couple of hours.. depending on whether I am able to take care of some other matters first that I have to do or if I decide that I will look at your thread before I do my other tasks.... your thread is still pretty new and therefore still pretty short (it's still on page 1).

[Rikafip]

Charges against SBF keep piling up as now he has been accused of "conspiring to violate anti-bribery provisions of the Foreign Corrupt Practices Act." as he allegedly transfered at least $40 millions to Chinese government officials. I am not a lawyer of anything of that sorts, but that sounds damn serious to me.

NEW YORK, March 28 (Reuters) - U.S. prosecutors on Tuesday unveiled a new indictment against Sam Bankman-Fried, charging the founder of now-bankrupt FTX cryptocurrency exchange with conspiring to violate anti-bribery provisions of the Foreign Corrupt Practices Act.

Federal prosecutors in Manhattan accused Bankman-Fried of directing the transfer of at least $40 million of cryptocurrency to benefit Chinese government officials.

They said Bankman-Fried directed the bribe in order to unfreeze accounts belonging to his hedge fund, Alameda Research, that Chinese authorities had frozen. The accounts held more than $1 billion of cryptocurrency, U.S. prosecutors said.

[JayJuanGee]

Charges against SBF keep piling up as now he has been accused of "conspiring to violate anti-bribery provisions of the Foreign Corrupt Practices Act." as he allegedly transfered at least $40 millions to Chinese government officials. I am not a lawyer of anything of that sorts, but that sounds damn serious to me.

NEW YORK, March 28 (Reuters) - U.S. prosecutors on Tuesday unveiled a new indictment against Sam Bankman-Fried, charging the founder of now-bankrupt FTX cryptocurrency exchange with conspiring to violate anti-bribery provisions of the Foreign Corrupt Practices Act.

Federal prosecutors in Manhattan accused Bankman-Fried of directing the transfer of at least $40 million of cryptocurrency to benefit Chinese government officials.

They said Bankman-Fried directed the bribe in order to unfreeze accounts belonging to his hedge fund, Alameda Research, that Chinese authorities had frozen. The accounts held more than $1 billion of cryptocurrency, U.S. prosecutors said.

Yeah sure some of the devil might be in the details because for sure bribery might be a cost of doing business in certain jurisdictions, and so whether SBF was merely facilitating a kind of business necessity cost versus if he was trying to curry special favors might be a matter of how to frame the matters, and many of us are already familiar that in the USA, SBF was engaging in a lot of "donating" of money in a lot of directions, which may well be considered a kind of influence peddling.. in regards to trying to get favorable treatment, but sure there are likely "fine lines" that vary in terms of what are the elements of the law (thresholds to cross) that are required to be breached in order to constitute a violation of the law... sometimes the elements that need to be breached might have to deal with intent, and other times there might be some monetary threshold, or maybe other times, there might be requirements that there are kinds of egregiousness in circumstances, so for example in the transfer of $40million to unfreeze accounts, maybe the general practice would have had been to go through a certain kind of a process that could have still achieved the same objectives for less than $1million but going through a kind of regular process, but instead, SBF skipped up one or to steps and then went outside of normal business channels, which thereby ends up constituting what is framed as a violation of the law... because there were normal channels of unfreezing or even perhaps some irregular ways that accounts could be unfrozen, yet what SBF did was way beyond any kind of normal, acceptable or even somewhat irregular means which shows that it ONLY could have had been a violation of the law.. of course, an allegation is not yet proven in court, and whether they have enough evidence to actually prove the allegation in a court of law versus having a sufficient factual and legal basis to allege it could be two different (but surely related) stories..

[JeromeTash]

So yesterday I received an email about Scheduled claim information and unique customer codes because FTX account balance was a net positive (I had some bitcoin sats in there and Locked Luna 2 from the Luna airdrop)

Not that the coins really matter as they had very little value, but It would be interesting to watch how this case goes through fast hand experience.

[OmegaStarScream]

FTX-EU (a subsidiary) users can now log in to a new site and make a fiat withdrawal request[1][2]. To be clear, this doesn't involve EU customers from FTX global. This is a different platform that opened a few months before the collapse of FTX.

[1] https://cointelegraph.com/news/ftx-eu-launches-withdrawal-website-to-pay-back-european-users
[2] https://cryptoslate.com/ftx-eu-opens-european-withdrawals-website/

[Rikafip]

To be clear, this doesn't involve EU customers from FTX global. This is a different platform that opened a few months before the collapse of FTX.

That's probably the reason why they opened withdrawals for them in the first place, knowing that not many people actually have account there. Its similar to why Celsius is giving back the money only to those in their custody program, not earn.

[Smack That Ace]

Update: FTX continues to have the plan to refund investors, FTX sent an email informing that it is seeking to refund many investors in Vietnam. However, the email also notes that this email is a confirmation for investors, and the payment schedule will be decided by the court.
There has not been too much information about FTX refunding investors in Vietnam, but it also brings hope to investors in other countries.
https://e.vnexpress.net/news/economy/bankrupt-ftx-raises-vietnamese-investors-hopes-with-email-4588667.html

[Rikafip]

Update: FTX continues to have the plan to refund investors, FTX sent an email informing that it is seeking to refund many investors in Vietnam. However, the email also notes that this email is a confirmation for investors, and the payment schedule will be decided by the court.
There has not been too much information about FTX refunding investors in Vietnam, but it also brings hope to investors in other countries.
https://e.vnexpress.net/news/economy/bankrupt-ftx-raises-vietnamese-investors-hopes-with-email-4588667.html

As far as I know, users from other countries/regions also got the same email so I think that its too early to celebrate, especially since we know that billions of dollars are still missing so chances of people getting all of their money back are slim.

[JeromeTash]

As far as I know, users from other countries/regions also got the same email so I think that its too early to celebrate, especially since we know that billions of dollars are still missing so chances of people getting all of their money back are slim.

You are right, there's actually going to be a long process as so many court proceedings are going on back and forth. And they haven't even reached the stage of filing proof of claims electronically. It's not automatic that the proof of claims could just get accepted from anyone as they have been sent.

Even in part of the email

They say this about the unique customer codes

PLEASE BE FURTHER ADVISED THAT RECEIPT OF THIS EMAIL AND A UNIQUE CUSTOMER CODE ONLY INDICATES THAT YOU HAD ONE OR MORE CLAIM(S) LISTED ON ONE OR MORE OF THE DEBTORS’ SCHEDULES AND STATEMENTS.  PROVISION OF A UNIQUE CUSTOMER CODE IS NOT AN ADMISSION BY THE DEBTORS OF THE VALIDITY OF SUCH CLAIM(S) OR A WAIVER OF ANY DEFENSES THERETO.  THE DEBTORS HEREBY INCORPORATE BY REFERENCE THE GLOBAL NOTES ATTACHED TO EACH OF THE DEBTORS’ SCHEDULES AND STATEMENTS AND RESERVE ALL RIGHTS. 

[bullrun2024bro]

Somewhat good news for users that got money on FTX. It looks like the exchange is going to relaunch in Q2, 2023:

Bankrupt FTX has recovered $7.3 billion in assets and is considering relaunching the exchange in Q2.

Bankrupt crypto exchange, FTX, has recovered more than $7.3 billion in both cash and crypto assets. Moreover, the total is more than $800 million since January, according to the company’s attorney at a bankruptcy court hearing taking place today.

Reuters reported the recovery at today’s hearing, which is undoubtedly a positive development for the failed exchange. Yet, it arrives alongside the news that it is considering a relaunch in Q2, the attorney said at Wednesday’s US Bankruptcy court hearing.

Source: https://twitter.com/WatcherGuru/status/1646207148244844560

Hopefully people will get at least part of their money back. Let's see if there any more updates in the coming days.

/edit: $FTT pumping on the news:



Source: https://www.coingecko.com/en/coins/ftx-token

[NotATether]

Somewhat good news for users that got money on FTX. It looks like the exchange is going to relaunch in Q2, 2023:

Bankrupt FTX has recovered $7.3 billion in assets and is considering relaunching the exchange in Q2.

No no no no no.

That exchange must not be allowed to relaunch, if it does, then it will demonstrate that people have learned nothing from the collapse and the shockwaves across the industry it caused.

You have all these celebrity FTX endorsers hit with lawsuits... do you think they're just going to forget what happened and come back?

And sure, SBF is no longer around to screw around with stuff, but how can you be sure that they won't mess something up like last tie?

It's going to be huge black mark on the industry, as there is still not enough money to reimbruse everyone (they are still $3billion short, so some people will still be screwed).

Even if that exchange "launches" again, there will be a huge bank run again where everyone tries to withdraw their money from FTX at once and FTX will be left with no assets (and some leftover angry customers).

[Ryu_Ar1]

Source: https://twitter.com/WatcherGuru/status/1646207148244844560

Hopefully people will get at least part of their money back. Let's see if there any more updates in the coming days.

That's right, the Reuters report says that it says FTX has now managed to recover quite a lot and this development comes amidst the bankruptcy hearing which makes this great news for those who managed to increase their recovery by more than $800 million since January.

The hope is obviously that people can now get their entitlements back but for their continuation to force a Q2 launch for them this will be a double edged knife.
Even if in this case they can prove that now they can to minimize what has happened but I think for some people obviously reputation matters and it's not just about future problems but about their track record as one of scary embezzlement for large funds so people will take this into consideration more. Even if there are still some who will go back but there are many who won't and I'm one of them who won't go back there even if they do an update on Q2 which they think is promising.

[JayJuanGee]

Source: https://twitter.com/WatcherGuru/status/1646207148244844560

Hopefully people will get at least part of their money back. Let's see if there any more updates in the coming days.

That's right, the Reuters report says that it says FTX has now managed to recover quite a lot and this development comes amidst the bankruptcy hearing which makes this great news for those who managed to increase their recovery by more than $800 million since January.

The hope is obviously that people can now get their entitlements back but for their continuation to force a Q2 launch for them this will be a double edged knife.
Even if in this case they can prove that now they can to minimize what has happened but I think for some people obviously reputation matters and it's not just about future problems but about their track record as one of scary embezzlement for large funds so people will take this into consideration more. Even if there are still some who will go back but there are many who won't and I'm one of them who won't go back there even if they do an update on Q2 which they think is promising.

Of course, this is a real strange development, and it was mentioned a couple of months ago as a possibility.

One strange thing is to say possible relaunch in Q2, and we are already in Q2.

It may well not be a bad thing for the space or for the coin holders (clients).. but still I wonder if they ever would be able to accomplish some kind of a reopening that would even be as close to as successful as Bitfinex did in late 2016.. even though the Bitfinex reopening was not without controversy.

I recall also that some folks thought that MTGOX should have reopened.. and who knows?

Some thing are just messy as fuck, and I find it a bit surprising that FTX believes that it is not as messy as fuck as it seems from the outside, and the quantity of entities that were engaged in obfuscating, fraud and influence peddling seems like a broken business model, and the so far failure/refusal to conduct an independent investigation seems like there might be some covering up going on, and is the new CEO part of the limitation of damages by diverting and continuing to obfuscate what actually had happened in terms of some of the heads of decently high level folks that may still either need to roll or to be held accountable in some way for their participation in that seemingly outrageous scam project that they are wanting to reopen "the non-scammy" parts, if any.

Frequently creditors will be concerned about how to get the most money back, and maybe some regulators want to save face, but if they are trying to say that some of the aspects of the exchange was "illegal" then are they reopening as a "legal operation"?  Will there be an international division and a USA division?

The article does not give very many details, and surely seems to be quite soon to be able to launch whatever they are going to launch by this quarter.. which would be ending in June and Q3 starts on July 1.

[Ryu_Ar1]

Some thing are just messy as fuck, and I find it a bit surprising that FTX believes that it is not as messy as fuck as it seems from the outside, and the quantity of entities that were engaged in obfuscating, fraud and influence peddling seems like a broken business model, and the so far failure/refusal to conduct an independent investigation seems like there might be some covering up going on, and is the new CEO part of the limitation of damages by diverting and continuing to obfuscate what actually had happened in terms of some of the heads of decently high level folks that may still either need to roll or to be held accountable in some way for their participation in that seemingly outrageous scam project that they are wanting to reopen "the non-scammy" parts, if any.

Well actually when talking about them not being so bad I actually quite agree because of course what makes them bad is the higher-ups who don't do well and commit crimes that are indeed very detrimental but regardless of anything of course the ftx is not bad if there are no people like that there.
But on the other hand we also don't know what the conditions behind the scenes are like now, we know that some news reports say that they will reshuffle some people who are considered guilty in this matter but on the other hand other possibilities about people behind the scenes still exist and this could be a risk again and in the end this can be a double-edged knife just like I said before

Frequently creditors will be concerned about how to get the most money back, and maybe some regulators want to save face, but if they are trying to say that some of the aspects of the exchange was "illegal" then are they reopening as a "legal operation"?  Will there be an international division and a USA division?

The article does not give very many details, and surely seems to be quite soon to be able to launch whatever they are going to launch by this quarter.. which would be ending in June and Q3 starts on July 1.

I think there will still be further updates on this because as you said there are no further details on this and right now saying Q2 is actually also almost unlikely in the midst of their condition which is a little bit tight although it can be forced but this means they are taking more risks in their current condition.

[JayJuanGee]

Some thing are just messy as fuck, and I find it a bit surprising that FTX believes that it is not as messy as fuck as it seems from the outside, and the quantity of entities that were engaged in obfuscating, fraud and influence peddling seems like a broken business model, and the so far failure/refusal to conduct an independent investigation seems like there might be some covering up going on, and is the new CEO part of the limitation of damages by diverting and continuing to obfuscate what actually had happened in terms of some of the heads of decently high level folks that may still either need to roll or to be held accountable in some way for their participation in that seemingly outrageous scam project that they are wanting to reopen "the non-scammy" parts, if any.

Well actually when talking about them not being so bad I actually quite agree because of course what makes them bad is the higher-ups who don't do well and commit crimes that are indeed very detrimental but regardless of anything of course the ftx is not bad if there are no people like that there.
But on the other hand we also don't know what the conditions behind the scenes are like now, we know that some news reports say that they will reshuffle some people who are considered guilty in this matter but on the other hand other possibilities about people behind the scenes still exist and this could be a risk again and in the end this can be a double-edged knife just like I said before

I am not exactly sure how much power and what the reporting requirements are of the "emergency interim CEO John J. Ray III" , but there are various systems in which bankruptcy, fraud and mismanagement causes a company to go into a kind of trustee relationship - and surely a team of leadership is put in place to determine how to proceed, including they will likely make fresh assessments regarding the extent to which they might need the expertise of prior FTX workers/executives or if they believe that they might have people on their teams that they believe would be more suitable for any kind of transition that needs to be made.. as well as any plan that they make has to be approved by the bankruptcy judge and also giving opportunities for any of the creditors to make objections, and surely sometimes there could be some spin or some ways of selling everyone on the idea that the better course of action would be to open up, especially if they have assets that seem sufficient to operate the company and perhaps to segregate off some aspects of the business in order to create stages of opening up and including if there are assessments that they retain a sufficient amount of brand recognition and good will that the whole thing would not end up failing as a fiasco...

and surely it may be bit too early to know if what they end up doing would end up being better for the various creditors and investors.. and of course, there could be some thoughts that they have sufficient regulatory approval and some of the liability angles could come out cleaner if they are able to reopen in a somewhat successful way.. probably not as successful as Bitfinex in 2016 - but Bitfinex in 2016 did not suffer from the same degree of complications in regards to why it had shut down in the first place.. and also the bankruptcy lawyers are going to make sure that they (and their team) gets sufficiently compensated for their efforts, and they likely have experience and models in terms of ways that bankrupt companies had reopened in the past and also to be capable of assessing what resources that they have in place in order to accomplish some similar kind of success with FTX.. whether they start out with the international version or the US version or if they have some kind of way of figuring out how they would stage which products are going to be offered or discontinued and maybe the order in which they would go live - including making assets available to creditors and maybe even spinning up their own shitcoin... (or shitcoins)..   

Frequently creditors will be concerned about how to get the most money back, and maybe some regulators want to save face, but if they are trying to say that some of the aspects of the exchange was "illegal" then are they reopening as a "legal operation"?  Will there be an international division and a USA division?

The article does not give very many details, and surely seems to be quite soon to be able to launch whatever they are going to launch by this quarter.. which would be ending in June and Q3 starts on July 1.

I think there will still be further updates on this because as you said there are no further details on this and right now saying Q2 is actually also almost unlikely in the midst of their condition which is a little bit tight although it can be forced but this means they are taking more risks in their current condition.

Yes.. whether you agree with this whole matter or not, it is kind of an interesting idea that they would be proposing (and even putting resources into) such a plan to reopen.. given the level of clown show that many of us longer term bitcoiners are able to recognize from the levels of scamming and duping that was likely happening, including that it is quite likely that some people are not really being held accountable so far.. and I am referring to people in Sam's family such as his dad, mom, brother and there may well be some other connections that could be followed in terms of how much some of those insider fucktwats (including lawyers and I am not sure if John Ray is wanting to protect any of them) were involved in setting up a lot of scam entities that were purposefully designed to obfuscate and scam the flow of funds, and we likely realize that chubby vegetarian virtue-signaling hypocrite dweeb - aka Sam - was way too dopey, emotional and retarded to be able to really run or organize such an operation - which for me seems to show that he had some higher level help in setting up some of those systems, legal structures, and keeping track of the matters with any kind of hope that they would not blow up and there likely is criminal intention with those people who were involved in organizing and setting up those various systems that FTX had in place.