#FTX So Sam Bankman Fried, fried Banks and Investors

The whole idea of blockchain is DECENTRALISATION, maybe its time we get our non custodian wallets and be our own banks.

I’m not saying that we shouldn’t use exchanges, I just think that majority of our tokens shouldn’t be on exchanges.

Learn from what happened to FTX or perish, and take a look at the end of this article on the Nuclear Crypto Bomb. And Yes I am Crypto libertarian.

A liquidity is when you need cash now, but you can’t sell the stock for a reasonable price, but the stock has real value, because it will continue to produce dividends in the future. With FTX, it’s not a liquidity crunch, because the underlying tokens have no actual value.

With FTX, “liquidity crunch” means “I can’t find a fool now that’ll pay what I believe fools will pay in the future for my ponzi tokens”. With normal finance, “liquidity crunch” means “I can’t find an investor now for what the future dividend stream will pay out”. (Yes, yes, I’ve heard of your cynical views that all finance and the stock market are just ponzi schemes, too. And it’s not completely unjustified. But real investments deliver returns not based upon finding a greater fool to buy them, but rent and dividends.)

The entire edifice of the crypto scam space is built on plausible analogies with real-world finance, with phrases like “liquidity” crunch, that ignore the fundamental differences that it’s actually nothing like this — that it’s just a scam.Everybody that does such a “burn” is a scam. It sounds like it’s not a scam, because it sounds like stock buybacks. But it’s the opposite. Stocks have real value (the stream of future profits), tokens don’t. The only value a token has is the ponzi effect of some greater fool. Among the ways you can identify “scams” is the promise of continual “burn” of its tokens. This is the process where you keep destroying some of your own coins/tokens to make the remainder more valuable.

So anyway, FTX promised to not do this. So people though they were great, that they were finally a trustworthy platform for things like “shorting bitcoin”. But you can’t short Bitcoin. It’s STILL a scam.

Of course, what really happened is that the accounts that get hacked are those belonging to the founders and friends. By being in control and deciding to “social losses” they effectively just stole money from customer accounts.

The platforms responded by “socializing” the losses, evenly distributing the losses across all the accounts, so that everyone lost 10% instead of a small number of accounts losing 100%.To be fair, FTX talked a good game, about what made it better than the past (scam) derivatives trading platforms. For example, in past platforms, sometimes hackers would break in, and steal money from SOME of the accounts.

On the other hand, it appears that FTX insiders have exploited this to empty all the customer accounts and steal all the remaining assets.

FTX Has Been Hacked’: Crypto Disaster Worsens as Exchange Sees Mysterious Outflows Exceeding $600M


(Danny Nelson/CoinDesk archives)

FTX bought the naming rights to the Miami Heat arena in March 2021.

(Danny Nelson/CoinDesk archives)

FTX Telegram admin claims exchange hacked

by Mike Truppa


The wallet address in question received funds from various international and U.S.-based wallets linked to FTX, which amassed over 83,878.63 ETH (worth over $105.3 million) in just two hours.

FTX funds on the move: bankruptcy proceedings, insider threat or a hack?

Related: FTX’s ongoing saga: Everything that’s happened until now

Adding to investor’s concerns, FTX sources told Reuters that between $1 billion and $2 billion of client money is unaccounted for in the company’s spreadsheet.

The unconfirmed report also suggests that SBF secretly moved $10 billion in funds to Alameda Research while pointing out that the whereabouts of missing funds remain unknown.

 Arijit Sarkar

To be fair, while FTX itself completely collapsed, its token FTT has not — because it truly exists as its own smart contract, tradeable on the blockchain, without a central authority.

With tethercoins, ERC-20 tradeable tokens, smart contracts, and other technobabble, I can make it look less and less like a scam. The more you understand these things, the less it looks like a scam. Ok, to not jerk you around, I’ll try to give a serious answer — it was a ‘derivatives’ trading platform. In other words, you could “short Bitcoin”, among other things. The problem is there is no way to “short Bitcoin” that isn’t a scam.

When Enron collapsed, new stories in the mainstream media will full of descriptions of exactly how it fraudulently did power trading. With FTX’s collapse, mainstream media can’t explain it.

Q: But I want details, I want to know what FTX’s actual business model, how did it actually earn money? A: Yes, yes, but that’s a tedious question. If it weren’t a scam, I could simply cite mainstream media stories that would explain this. I can’t. Because it’s a scam.

Q: But why does the media, even now, treat FTX as a serious company that just had a “liquidity crunch” instead of a scam? A: Because the longer ponzi schemes go without collapsing, the more serious people in the media are tempted into convincing themselves it’s not a scam.

Q: But if it was such an obvious scam, why did so many serious investors (like famous VC firm Sequoia Capital) get suckered into it? A: Because the longer ponzi schemes go without collapsing, the more serious people are tempted into convincing themselves it’s not a scam.

A quick FAQ: Q: What actually was FTX? and why did it collapse? A: A scam. because it was a scam.

Now some #meme and tips for the @sec

Maybe it is just his earn to give philosophy now real

And Media & Think Tank Like it

Like … Sorry to say I am sorry

Waiting for the movie

At the End and Till the End

Vast gap highlights the dire state of Sam Bankman-Fried’s exchange before it collapsed into bankruptcy

FTX held less than $1bn in liquid assets against $9bn in liabilities

@Financial Times Antoine Gara in New York and Kadhim Shubber and Joshua Oliver in London
 few hours ago

The Nuclear Crypto Bomb

THIS IS THE REAL PROBLEM with Exchange’s that could crash the market, what I call the Nuclear Crypto’s Dawn.

If #FTX tampered with the balance sheets and took assets out through a backdoor, we have 0 BTC in the liquidation documents, BUT with 1.4 Billion BTC in debt … this could be for other assets as well, especially altcoins leveraged into #Defi !!!

The reasoning is simply scary:
That is, if I have an exchange (FTX) and hold 10 Bitcoins, but I have 12 customers who want 1, I can sell 12 bitcoins holding only 10. Onchain won’t see the problem anyway until all 10 customers withdraw their BTC …

Considering then that the withdrawal is blocked for 50% of my clients, so on chain we can’t verify this for all assets it is possible that FTX has sold a flood of assets it didn’t hold in its portfolio …

As if he had single-handedly increased the number of Bitcoin’s in circulation by over 21 ml !!!

If this was done with other assets as well, (considering he is 8/9 billion short: I think so), the implications could be remarkable !

Supposedly, FTX Held Just $900MM In Liquid Assets Vs $9BN In Liabilities As Video Emerges Confirming Alameda Knew It Was Pilfering Client Funds,

On Friday, we first learned courtesy of a mystery twitter account belonging to an anonymous FTX insider, that the now bankrupt crypto exchange held just $900 million in liquid assets (including, among other things, a $7.3 million online bet by Democrat megadonor Sam Bankman-Fried for Trump to lose).


The document, which the FT also tracked down on Saturday and discussed here, and which was shared with prospective investors before the bankruptcy, provides a detailed picture of the financial hole in the FTX crypto empire and suggests customers of FTX international may face steep losses on cash and crypto assets they held on the exchange (and speaking of the 134 subs that FTX listed on its bankruptcy filing, the FT notes that the company had incorrectly listing entities it did not own in its initial filing, while as we reported earlier, the exchange suffered an apparent hack on Friday night that drained its balances to zero).

Images in this post are considered to be in the public domain since found on the web and media therefore supposed to be copyright-free images – it’s not intended from the author of the post to violate any copyright right infringement laws, or to offend anyone; in the case you advise a violation, would you advise me and I’ll promptly remove them. The post it’s also an expression of my personal opinion. 

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