The FTX scam, Sam Bankman-Fried, the Clintons and the Democrats

This is your problem, which you have repeatedly demonstrated in this thread.

You can't articulate your own opinions, you keep trying to refer to other sources to try and explain what you seemingly cannot.

I have already read that. Not having good internal controls is not a crime. Its a terrible idea, but not illegal.

So, I will ask again.

What specifically did I say, which you disagree with, and why.

 

One new piece of information I did just learn from the body of the bankruptcy filings, is the company did actually have financial auditors.

Those two firms are certainly toast.

 

That's the whole business of banking. Take your money and invest it elsewhere to make a buck. It's well-regulated and the vast majority of deposits are FDIC-insured.

Crypto businesses are largely unregulated and how SBF runs his businesses (extremely poorly) might not be illegal (although I'm sure subjected to civil lawsuits).

SBF allegedly took Billions of FTX customers' funds and put it into his other company - Alameda Research (and traded with them without customers consent). This is where it is illegal - if the "funds" are financial securities. I think the SEC is trying to position the funds and trading of them as financial security and thus be subjected to security laws.

Sam Bankman-Fried’s Alameda Quietly Used FTX Customer Funds Without Raising Alarm Bells, Say Sources - WorldNewsEra

 

Yea, I think you and I are aligned.

As I said before I just don't know the Crypto business, and related regulations, to know if its illegal. It probably is, and most certainly SHOULD be regulated. If FTX's stance is hey we are basically a bank for Crypto and we don't need our customers consent to make investments, that is scary. I don't exactly consent to my bank loaning out my money (or get notification).

This reminds me quite a bit of the 2008 crisis, where everyone was just over leveraged and a triggering event caused a collapse. Nothing there was illegal and no one went to jail, although it did usher in a number of regulations. At the time, basically no one knew what a credit default swap was, what the risks were, etc.

But I cannot over emphasize that I simply don't know anything about Crypto Markets, and I could be completely off base, I just happen to know the finance markets in general....somewhat.

 

I believe that is the crux of the issue. You are correct. People did not go to jail. However they absolutely should have.

There is a difference in investing in an idea that might work. Almeda was literally gambling (and very poorly at that) with FTX funds. There is a reason why the government dont allow casinos to run unregulated

 

What is the gambling component, I wasn't able to find good info on exactly what Alameda was doing with the money.

 

Alameda was accusing of front running trades, specifically with Celcius and Voyager, ect ...

 

Now that I think about it, that could actually be a key component here.

If FTX is just sending money to a hedge fund, expecting a return, and Almeda mishandled it, that could transfer the criminal liability.

Don't know offhand, if SBF had controlling interest in Almeda, or they were arms length companies.

Although, I think it was been referred to as a loan, and not an investment, which might dissolve that line of thinking.

 

Its fairly obvious you lack the tools to discuss this topic.

I have given you numerous opportunities to express your opinions on the topic, which you simply are unable to do. Real soft ball questions, which you apparently are struggling with.

The difference between you and I is that I am comfortable with what I don't know, while you clearly are not. Its alot easier now to see why you run towards political strongmen, despite their incompetence as leaders.

Props to @Space Ghost , whom despite being on the other end of the political spectrum, is willing and able to engage in civil discourse.

 

If you are jumping in now expecting to get quick answers, keep in mind this is a continuation of events that happened in June. It's like watching a sequel without watching the original or spin offs.

Traditional news outlets aren't going to spell it out because no one fully understands all the pieces. If they did, they would've reported FTX's shady board ages ago.

Soo what you're left are the sources you have and your own ability to parse what you get into a workable model.

Next gen Madoff, tbh. Not only did his Ponzi collapse, he secured another round of funding to swoop up other ponzis (Celsius, etc) in order to be lionized as the "JP Morgan of crypto".

Recent developments also allege he transferred the deposits of Voyager and Celsius into FTX to wash and backstop margin calls from Alameda.

A lot of folks from June, hoping to get %70+ from their deposits are going to be screwed even further.

 

I can't believe the Clintons did this. It's all their fault.

 

Haven't read these articles but no one has shat on it in the replies.

 

Elon Musk is the new Q NaNa for the woke mob

@Xerobull

 

Just read the intro and be done . Excellent set of articles.

What Happened to FTX? (nymag.com)

Explain It to Me Like I’m … 5 years old.
A silly-haired wizard sold magic beans. The villagers loved it! Until they stopped believing in magic and demanded their money back, only to find out that the wizard had already spent it.

Explain It to Me Like I’m … 10.
A really smart guy owned a bank. He was also a terrible poker player. He used made-up money to buy his way into a high-stakes game and then he lost, so he paid his gambling tab by robbing his own bank. (Allegedly.) When his customers heard about his gambling losses, they stormed the bank to pull their money out, but there wasn’t enough in the vault to pay them all back.

Explain It to Me Like I’m … a crypto newbie.
Sam Bankman-Fried founded what he claimed were two separate companies: a hedge fund called Alameda Research and a cryptocurrency exchange called FTX. A crypto exchange is a website where users can buy and sell digital currencies. Another cool thing an exchange can do is create its own cryptocurrency, which is like printing money out of thin air. FTX’s currency was called FTT. Reportedly, the company printed lots of it, much of which got sent to Alameda (which turned out to be not so separate), making it seem like the fund was healthy. When FTX’s customers found out, they panicked and tried to withdraw their money. They were in for an even bigger surprise: It looked like Bankman-Fried had secretly shifted $10 billion of their funds to Alameda.

Explain It to Me Like I’m … a crypto sophisticate.
blah blah blah SBF courted investors with promises of high returns and zero risk, which sounds dumb in retrospect but plenty of rich people believed it at the time. blah blah blah (...)

 

Explain it to me like I am a Bitcoin Maxi.

Blah blah blah. I told you so. Those beans are not magic. You're being scammed. Not your keys, not your cheese.

But check out my beans. They really are magic.