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Sam Bankman-Fried Says FTX in Talks To Raise Capital, Alameda Research To Wind Down Trading (techcrunch.com) 11

Sam Bankman-Fried said on Thursday that he will be winding down the trading firm Alameda Research and is attempting to raise liquidity for the troubled FTX International exchange, as he scrambles to keep the world's second largest crypto exchange alive after a bailout deal with Binance failed earlier this week. From a report: Bankman-Fried said in a series of tweets that he is engaging with a "number of players" to raise capital for FTX's international business and those discussions are at various stages including reaching letter of intents and termsheets deliberations. FTX's U.S. business is "fine" and "100% liquid," he said. He did not disclose the names of the firms or individuals he is engaging, but one of them appears to be Justin Sun, the founder of Tron blockchain. Axios reported on Thursday that Bankman-Fried is also in talks with Kraken, another large crypto exchange.
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Sam Bankman-Fried Says FTX in Talks To Raise Capital, Alameda Research To Wind Down Trading

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  • Circling the Drain (Score:5, Insightful)

    by Ritz_Just_Ritz ( 883997 ) on Thursday November 10, 2022 @09:52AM (#63040911)

    Why throw good money after bad. Just let it die already. Use that capital for things that matter.

    • by careysub ( 976506 ) on Thursday November 10, 2022 @10:13AM (#63040947)

      Why throw good money after bad. Just let it die already. Use that capital for things that matter.

      Hint: Sam Bankman-Fraud is trying to get other people to throw their real money into the collapsing ruin for his personal benefit. But as we saw with Binance, other people with real money are not interested in doing that.

      • Hmm... Bankman-Fried --> Bankman-Fraud is so obvious. They should have hired better script writers, with enough sense to be more subtle to write this script.

        • by jhecht ( 143058 )
          Bankman-Fried means his goose is pretty well cooked already. Nominative determinism in action
      • by Zontar_Thing_From_Ve ( 949321 ) on Thursday November 10, 2022 @01:42PM (#63041417)

        Why throw good money after bad. Just let it die already. Use that capital for things that matter.

        Hint: Sam Bankman-Fraud is trying to get other people to throw their real money into the collapsing ruin for his personal benefit. But as we saw with Binance, other people with real money are not interested in doing that.

        My guess is the infusion he gets will be some other crypto crapcoin that will maybe keep his companies alive until that crapcoin goes bust itself. One of the things I have learned this year is that almost all if not all of these crypto exchanges are heavily leveraged into each other, so when one goes down, it takes others with it. It seemed to me that the Terra/Luna debacle was most likely not caused by a malicious actor but a big money investor cashing out. Same thing happened to FTX. Binance and FTX's CEOs used to be BFFs but their relationship soured. However, Binance's CEO had bought something like a 10% stake in FTX very early on. FTX tried to open an office in Gibraltar and the authorities required information about the major shareholders of FTX and the Binance CEO refused to cooperate, so FTX bought out his stake with their own crapcoin, also named FTX. The Binance CEO directed a sale this week of the entire holding of the FTX crapcoin, about half a billion dollars worth, and just like with Terra/Luna, the computers to process the transactions couldn't keep up with the demand, which enabled smaller holders to see that some major holder was cashing out, which caused panic sales, which slowed the computers down more, which caused the FTX price to fall, and now jump back to panic sales to restart the cycle. Bankman-Fried, if he hasn't already done so, may be seeking a foreign country to go to that lacks an extradition treaty with the USA and join several of his fellow crypto CEOs on the run from the law, no longer being a billionaire but still able to live very comfortably off the tens or hundreds of millions in real hard cash.

    • The mob that uses his service are probably not too happy at the moment. Self preservation.
  • by Anonymous Coward

    A place for talking about anything you want!

    https://slashdot.org/comments.... [slashdot.org]

    Why not stop in and tell us what you’re having for dinner?

  • by Petersko ( 564140 ) on Thursday November 10, 2022 @10:52AM (#63041009)

    Under the circumstances, I'm compelled to ask, "Which streetcorner are you begging on, and is the hat you're holding out in at least good enough to catch any spare change thrown your way?"

  • Cryptocurrency and NFT news are incredibly boring.

    Currency X is high, is down, is stable, crashed, whatever.

    Exchange Y is doing well, went bankrupt, is purchasing another, was purchased in turn, etc.

    Cryptobro Z is now rich, or bankrupt, or trying a new fraud scheme, or yawn.

    Protocol W is amazing, is old news, crashed, split, merged, blah blah blah.

    And on, and on, and on.

    Meh. News for nerds? Maybe. Stuff that matters? Not at all.

  • There's a lot of smoke and mirrors in the room, and its all venting to the atmosphere. If everything were actually Ok he wouldn't be fishing for other peoples cash to burn.
    • That's also what's ironic/revealing about a lot of these crypto unravelings. The arguments typically put forth in favor of crypto often include some reference to giving people an option of currency/stored value outside of their national borders. Examples would be like Zimbabwae, Venezuela, etc where the governments do just print money and end up with hyperinflation. So the theory is if you live in one of those places, you use crypto instead and avoid those awful national, central banks devaluing your c

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