2022-11-14
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Crypto con games
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Big Investors Are Giving Up on Crypto Markets Going Mainstream
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Exclusive: At least $1 billion of client funds missing at failed crypto firm FTX | Reuters
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To reduce cascading negative effects of FTX, Binance is forming an recovery fund
- Just like FTX did months ago...
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The collapse of FTX and Sam Bankman-Fraud is looking quite spicy for journalism
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Crypto Exchange AAX Halts Withdrawals, Says FTX Put Immense Pressure on Industry
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FTX Fiasco Sparks Billions of Dollars of Outflows from Exchanges
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FTX’s Collapse Casts a Pall on Effective Altruism Philanthropy Movement
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Binance boss says no one can be protected from a ‘bad player’
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Levine: FTX’s balance sheet was bad Archive link
Spending $5 billion of customer money on Serum would have been horrible, but FTX didn’t do that, and couldn’t have, because there wasn’t $5 billion of Serum available to buy. FTX shot its customer money into some still-unexplained reaches of the astral plane and was like “well we do have $5 billion of this Serum token we made up, that’s something?” No it isn’t!
... Its balance sheet consisted mostly of stuff it made up! Stuff it made up! You can’t do that! That’s not how balance sheets work! That’s not how anything works! Oh, fine: It is how crypto works.
I tried, in the previous section, to capture the horrors of FTX’s balance sheet as it spiraled into bankruptcy. But, as I said, there is something important missing in that account. What’s missing is the money. What’s missing is that FTX had at some point something like $16 billion of customer money, but most of its assets turned out to be tokens that it made up. It did not pay $16 billion for those tokens, or even $1 billion, probably. Money came in, but then when customers came to FTX and pried open the doors of the safe, all they found were cobwebs and Serum. Where did the money go?