FTX Ordered To Pay $12.7 Billion To Customers, US CFTC Says (reuters.com) 14
FTX has been ordered to pay $12.7 billion in relief to its customers, according to the Commodity Futures Trading Commission (CFTC). In a statement, CFTC Chairman Rostin Behnam said the crypto exchange drew customers in with "an illusion that it was a safe and secure place to access crypto markets," then misappropriated their customer deposits to make its own risky investments. Reuters reports: The repayment order implements a settlement between the CFTC and the bankrupt crypto exchange, which has committed to a bankruptcy liquidation that will repay customers whose deposits were locked during its late 2022 collapse. FTX has said that its customers will receive 100% recovery on their claims against the company, based on the value of their accounts at the time it filed for bankruptcy. The CFTC agreement resolves a potential roadblock to that repayment, ensuring that the government's lawsuit against FTX will not reduce the funds available to its customers. The CFTC agreed not to collect any payment from FTX until all its customers are repaid, with interest.
The CFTC settlement requires FTX to pay $8.7 billion in restitution and $4 billion in disgorgement, which will be used to further compensate victims for losses suffered during the exchange's collapse. [...] FTX is currently soliciting votes on its bankruptcy proposal but faces opposition from some customers who feel short-changed by the decision to repay them based on much-lower cryptocurrency prices from November 2022. Votes are due on Aug. 16, and FTX intends to seek final approval of its wind-down plan on Oct. 7.
The CFTC settlement requires FTX to pay $8.7 billion in restitution and $4 billion in disgorgement, which will be used to further compensate victims for losses suffered during the exchange's collapse. [...] FTX is currently soliciting votes on its bankruptcy proposal but faces opposition from some customers who feel short-changed by the decision to repay them based on much-lower cryptocurrency prices from November 2022. Votes are due on Aug. 16, and FTX intends to seek final approval of its wind-down plan on Oct. 7.
no mention of cash (Score:5, Interesting)
The article didn't say.
Any mention of SBF? (Score:2)
Mod parent Funny? But for weak values of Funny. And evidently not productive as an FP.
But I'll go for an Informative mod via a book citation of Going Infinite by the great Michael Lewis. About 2/3 into it and so far a quite sympathetic, even friendly, treatment of SBF. Also seems kind of funny insofar as the corporate goal was for FTX to become the most legal of cryptocurrency-related businesses. (I checked into the legal status of the big legally indifferent crypto-exchange, and it seems to be doing well
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The lack of mention of cash however isn't funny, and I would like to defend it as a reasonable and thought provoking FP.
I'm trying to get you to think about how the "payout" is basically a joke, but superficially looks pretty good.
This same thing happened with
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Well, the way FP works around here you always have to make allowances for the race condition, though, as we've both noted, there wasn't any race to comment on this story.
I did start working on a minor rant on the topic (provoked by the book). Maybe you'll find the current draft funny?
The future is unknown and fundamentally unknowable and therefore every kind of fintech based on speculations about the future is fundamentally smoke and mirrors. Cryptocurrency seems even less substantial, but on reading this book I feel like it's much smokier than I thought and even less substantial than any reflection. My draft conclusion is that SBF was the worst kind of charlatan: He believed in his own snake oil and was completely high on his own supply. Everyone's nuts, but some of them are dangerous and SBF's craziness became as dangerous as it's possible to become without actually shooting someone on 5th Avenue.
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Payback in fairy dust is just more smoke and mirrors.
Not sure if this is any different throughout the ages, but it seems that
Ref: Steve Jobs, Donald Whasisname, Peter Thiel...OHH yeah, Elon Musk... help me out here... pretty long list of candidates
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Regarding SBF, I think you should read the book. FTX was almost entirely about SBF's peculiar personality, especially his insanely high tolerance of ambiguity.
As regards your closing topic, I mostly agree, but I think you may be mixing corporation-leading sociopaths with some other stuff. However I'm not particularly convinced it matters who is at the top. It's actually evolved (in alignment with the legal system) so that it's more like a lottery. It doesn't really matter which corporate cancer wins the nic
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As far as the cult of personality world we are in though, I think it's all accelerated with electronic media, social media.
Example. If Biden had stayed in the race, we'd probably all still talking about an assassination attempt.. that happened o
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Getting too far off topic, but I'll just add two more predictions about the election:
(1) Putin will declare peace (in our time) in Ukraine. (Yeah, it's a terrible joke if you get the reference.) Putin won't mean it, but it will be timed for maximal effect on certain voters.
(2) Stock market crash, though this one might be linked to this story if it's done with cryptocurrency. It's even possible that giant little dip last week was some kind of test run. Maybe not the stock market, though I think it's easiest
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I'd be astounded if Putin would make nicey nice before the election, (or anytime before he gets assassinated), because, however retarded, the accolades would likely accrue to Biden/Harris/Democrats, and make bad press for the Orange Man, while he'd surely try to spin it as his win. I'll bet you a beer on that.
Stock market crash?.. hmmm. Ever heard "sell in May and stay away?". I don't think that mini crash was anything but typical profit taking for 2 reasons: 1. August sell off is pretty nor
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Mostly the ACK or even wishes that you're right, but you seem to think that I think that Putin would mean it. Not at all. Putin wants Ukraine and he wants it last decade. (Actually longer.) There's a good book called Red Famine about why the Ukrainians disagree. A lot.
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Ummm.. that one is 50/50.
Not sure I'd bet on it, but... if it happens... it is Game Over.
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I'd give it the Funny mod if I ever had a mod point to give.
A timeline (Score:5, Interesting)
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