Sam Bankman-Fried's Cryptocurrency Exchange FTX Files for Bankruptcy (cnbc.com) 61
Sam Bankman-Fried's cryptocurrency exchange FTX has filed for Chapter 11 bankruptcy in the U.S., according to a company statement posted on Twitter. From a report: Bankman-Fried has also stepped down as CEO and has been replaced by John J. Ray III, though the outgoing chief will stay on to assist with the transition. Approximately 130 additional affiliated companies are part of the proceedings, including Alameda Research, Bankman-Fried's crypto trading firm, and FTX.us, the company's U.S. subsidiary.
In the 23-page bankruptcy filing obtained by CNBC, FTX indicates that it has more than 100,000 creditors, assets in the range of $10 billion to $50 billion, as well as liabilities in the range of $10 billion to $50 billion. Bankman-Fried also indicated that he wishes to appoint Stephen Neal as the firm's new chairman of the board. "The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders," said the new FTX chief, Ray. "The FTX Group has valuable assets that can only be effectively administered in an organized, joint process. I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness and transparency," continued Ray.
In the 23-page bankruptcy filing obtained by CNBC, FTX indicates that it has more than 100,000 creditors, assets in the range of $10 billion to $50 billion, as well as liabilities in the range of $10 billion to $50 billion. Bankman-Fried also indicated that he wishes to appoint Stephen Neal as the firm's new chairman of the board. "The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders," said the new FTX chief, Ray. "The FTX Group has valuable assets that can only be effectively administered in an organized, joint process. I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness and transparency," continued Ray.
What a fraud. (Score:3)
Re:What a fraud. [But it's getting REAL now!] (Score:3)
I always suspected the most real thing about cryptocurrency was the fraud. But that was before the wave of bankruptcies.
Who said currencies should be regulated? The market done said it, and it said it to the scammers!
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What we are waiting for is the Twitter bankruptcy and the ramifications for Musk.
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What happens to those fines if you dissolve the corporation? Say, if it no longer has assets or a reputation worth more than the fines?
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Re:What a fraud. (Score:4, Informative)
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Re:What a fraud. (Score:4, Interesting)
I was recently reading about the S&L crisis, quite a few of them went to jail. Seems to be the last time bank crooks were punished.
Re: What a fraud. (Score:2)
See William Black on the topic of âoeControl Fraudâ as well as his book:
https://books.google.com/books... [google.com]
Re: What a fraud. (Score:1)
Re: What a fraud. (Score:4, Insightful)
Show me on the doll where Tom Brady touched you. I notice you have no ire for Matt Damon or Larry David(who actually starred in a commercial for FTX). Or perhaps Tom Brady didn't touch you, he just likes the wrong politicians. Stay angry, my friend.
Re: What a fraud. (Score:1)
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Perhaps the fact that his billions in wealth are being totally obliterated will need to be enough.
Wasn't the inciting event for all of this the discovery that there actually wasn't billions of dollars but instead a self-dealing scam?
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For accuracy: there was a multi-billion dollar valuation on the vaporcoin he was using to back all kinds of other "investments."
With the lie called out on that shit, anything that FTX or Alameda touched is going to be toxic, and the more they held, the more toxic it will be.
This is the reason why Bitcoin and Ethereum are down 20% on the week, but Solana is down 50% - FTX had very large SOL holdings that made a larger percent of the overall "currency" in circulation.
When you have a two-digit number of billio
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Your place of incorporation doesn't matter. If the US Government says "you owe us millions in fines because you broke securities law" or "you're indicted on felony fraud charges" you better show up to court, or you're never doing business in the United States of America again until you do. There's no shortage of judges that will sign court orders to freeze bank accounts, seize assets, and generally make your life a living hell for not complying. And as we've seen lately, the US Government doesn't have a [justice.gov]
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ponzi crypto-scammers should be in jail. now if only people would come to their senses and stop believing in BS.
Yep. I don't see any reason at all why they should get bankruptcy protection.
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Yep. I don't see any reason at all why they should get bankruptcy protection.
I find it so amusing that the people who are all-in with defi and sticking it to the government when times are good scurry to the protection of the government when times are bad. If you want to live outside of the regulated financial system, live outside of it and live with the consequences of that choice.
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Internalize profit, externalize risk. That's been the financial industry since the turn of the last century.
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Well, yes. But to be fair, that's what everyone does to the extent that they can. Some people calculate profit/value differently than others though. Reputation seems to have lost most of it's value, as least in "publicly traded" spaces, though it still has a lot of value in many personal spaces.
FTX went from a $32 billion valuation (Score:5, Insightful)
Those who valued such things so highly should be publicly shamed and lose all their credibility.
Re: FTX went from a $32 billion valuation (Score:1)
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Only in an autocratic despotic dictatorship.
In the civilized world, we don't let the state murder people for fraud. We jail people for fraud and liquidate every single thing they own in order to pay back the victims.
Even Madoff victims got restitution after he went down. Did they get everything back? No. But having this guy dropped in a hole and buried wouldn't get their money back either.
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Did they get everything back? No. But having this guy dropped in a hole and buried wouldn't get their money back either.
The point of dropping them in a hole isn't to get their money back; it's to demonstrate to other would-be fraudsters that there are indeed penalties for this behavior. If more C-suite heads ended up in wicker baskets, there might be fewer shenanigans.
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Doesn't work as the fraudsters always think they won't get caught.
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Because capital punishment has curbed murder, right?
No, it absolutely has not. Because most criminals think they won't get caught, so any 'deterrence' factor is completely ignored.
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Corporate/financial crimes are a different matter. There is only a risk/cost
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Murder is often a "passion" crime, and secondarily of reduced impulse control (such as with some psychopaths, who aren't emotional, but have still have urges). The would-be murderer, in the moment, would not be deterred by any thoughts of themselves being killed. In the moment, they have nothing else to live for. Even "premeditated" would-be murderers do not have the rational faculties to bring themselves down from their passion.
You are completely leaving out "murder in the commission of other crime" such as drug murders, gang violence, muggings, armed robbery, carjacking, etc. where the deterrence factor would totally apply, because someone is making an informed choice to stick a gun in someone's face and demand their money / stuff.
Specifically in the case of drug and gang violence, many times the would-be murderer will not really be given a choice - he can go flip the "off switch" of the intended target, or they get their own swi
He violated all kinds of things (Score:2, Informative)
He used $10B of his customers funds from FTX to make a loan to his other investment fund (a total breach of conflict of interest) to squander on high risk, leveraged crypto "investments."
That alone should put him in jail for a while.
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Bankman-Fraud described that as a "poor judgment call" as might any criminal when his crime is detected.
Re:He violated all kinds of things (Score:4, Funny)
Getting caught is always a poor judgement call.
Obviously we need a tax payer funded bailout of the crypto industry.
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Obviously we need a tax payer funded bailout of the crypto industry.
Given we're talking about crypto, we could just make up a new digital currency - CrapCoin Extraordinaire (non-FTX version) - and use that for the payouts. I've got an old PC laying around somewhere, I'd be happy to provide a home for everyone's CrapChain wallets.
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Lmao, omg, hurts to laugh this hard. Thank you.
He also already publicly admitted guilt with an (Score:2)
apology. I guess he didn't have enough leftover for some good lawyers. I don't know how this ends with him outside of jail.
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You really think he doesn't have extra crypto stashed on another wallet somewhere, for "just in case" purposes?
I guarantee he'll publicly be playing the "woe is me I lost everything" card, but you're still not going to see him flying coach or driving a Kia.
He didnâ(TM)t lose 25 billion (Score:3)
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A billion here, a billion there, and pretty soon you're talking real money.
99 cryptocoin exchanges on the net (Score:4, Funny)
99 cryptocoin exchanges,
one goes bankrupt with management corrupt
98 cryptocoin exhanges on the net
Re:99 cryptocoin exchanges on the net (Score:5, Insightful)
99 cryptocoin exchanges,
one goes bankrupt with management corrupt
103 cryptocoin exhanges on the net
Fixed it for you.
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C'mon, allow me to enjoy the fantasy while it lasts.
Fortune cookies (Score:2)
Good. Maybe my fortune cookies will have fortunes in them again.
Payable in electrons (Score:5, Funny)
The exchange may be bankrupt, but at least the currency holders have real, hard coin backed by real electrons.
Not to worrry (Score:3)
I'm sure he squirreled enough money away, safe from the high risk investments he used other people's money for that he can live comfortably without working.
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From jail?
When I was a kid I lived in sight range of what we called "the country club" where they put all the big name white collar crime types. If we're lucky he'll get to work on his tennis game at a place like that for 20 years.
Re: Not to worrry (Score:1)
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I can't read the future but I'd bet anything nothing like that happens based on the past.
Maaaaaaybe he'll do 2-5 at a country club. Maybe. But I wouldn't get a dollar on that one.
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After spending 10 years dodging it through various legal maneuvers, delay tactics, appeals of every little motion, etc. Even if found guilty, he can still appeal the sentence and get it suspended pending appeal - have a look at that scumbag Steve Bannon still free as a bird, even after a felony guilty verdict; and he doesn't have nearly the resources that Bankman-Fraud has.
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All true. I fully agree with you. Except unless he sold a bunch and stored the cash somewhere he might be stupid enough to be broke.
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Assuming he goes to jail (he should, but too often jail is for poor people). In any event, once out there will be a nice stash waiting for him somewhere.
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He probably won't see time, sadly. I'm not certain about the stash though. A lot of these crypto bro types really truly believe in HODL so it's possible he lost everything. One can only hope.
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This is why I will never become a billionaire. After I made the first $20 million I would tag out and go on permanent vacation...
PSA:if you don't have possession of your wallet... (Score:2)
...you don't have possession of your crypto.
That is all.
High Profiles (Score:2)