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Read the tweet, it's not that he didn't understand, he was in fact talking about FDIC insured accounts, just ones that FTX uses, not FTX accounts themselves. T

Read the tweet, it's not that he didn't understand, he was in fact talking about FDIC insured accounts, just ones that FTX uses, not FTX accounts themselves. The FDIC is being a little pedantic here, but that's fine, it was a warning and he deleted the tweet.

marshray 4y ago
"brokerage accounts are SIPC-insured, cash associated with brokerage accounts is managed into FDIC-insured accounts at our partner bank" https://twitter.com/Brett_FTX/status/1552339740397109248 https://twitter.com/Brett_FTX/status/1552339740397109248
mv1234 4y ago
I wouldn't be so quick to assume good faith. Voyager made the same "pedantic" mistake in their marketing materials and quite a few retail investors got a nasty surprise when they collapsed. https://www.reddit.com/r/Invest_Voyager/comments/vp8kdq/preparing_for_the_inevitable_fdic_claims/ https://www.reddit.com/r/Invest_Voyager/comments/vp8kdq/prep...
- aaaaaaaaata 4y ago
  Genuinely: you don't see the difference between Sam and Mark Cuban?
  - mv1234 4y ago
    Given that Sam is one of Tether's biggest customers, plus his US campaign donations and efforts to deregulate derivatives markets (when has that ever been a bad idea?), I consider him far more dangerous than Mark Cuban could ever be.
vkou 4y ago
> Read the tweet, it's not that he didn't understand, he was in fact talking about FDIC insured accounts, just ones that FTX uses, not FTX accounts themselves. Yes, he's repeating an old scam that has played out a number of times in this space. 1. Build customer confidence by telling them that your[1] accounts[2] are FDIC-insured[3]. 2. Go to Vegas and put all your customers' money on red. 3. Whoops. It's fine for some Joe on reddit to be this willfully ignorant and misleading about how the technicalities of FTX, its accounts, and the FDIC work. But it's not fine for the CEO of FTX to do this. It's his job to know this shit, and it's his job to not mislead his customers. [4] [1] And by your, we mean our. [2] And by accounts, we mean our operating accounts. [3] And we don't mean insured against us doing stupid shit with your money, we mean insured against our counterparty running off with our money. [4] Well, it would be if he weren't running a fly-by-night wildcat bank.

marshray 4y ago

"brokerage accounts are SIPC-insured, cash associated with brokerage accounts is managed into FDIC-insured accounts at our partner bank" https://twitter.com/Brett_FTX/status/1552339740397109248 https://twitter.com/Brett_FTX/status/1552339740397109248

mv1234 4y ago

I wouldn't be so quick to assume good faith. Voyager made the same "pedantic" mistake in their marketing materials and quite a few retail investors got a nasty surprise when they collapsed. https://www.reddit.com/r/Invest_Voyager/comments/vp8kdq/preparing_for_the_inevitable_fdic_claims/ https://www.reddit.com/r/Invest_Voyager/comments/vp8kdq/prep...

aaaaaaaaata 4y ago
Genuinely: you don't see the difference between Sam and Mark Cuban?
- mv1234 4y ago
  Given that Sam is one of Tether's biggest customers, plus his US campaign donations and efforts to deregulate derivatives markets (when has that ever been a bad idea?), I consider him far more dangerous than Mark Cuban could ever be.

vkou 4y ago

> Read the tweet, it's not that he didn't understand, he was in fact talking about FDIC insured accounts, just ones that FTX uses, not FTX accounts themselves. Yes, he's repeating an old scam that has played out a number of times in this space. 1. Build customer confidence by telling them that your[1] accounts[2] are FDIC-insured[3]. 2. Go to Vegas and put all your customers' money on red. 3. Whoops. It's fine for some Joe on reddit to be this willfully ignorant and misleading about how the technicalities of FTX, its accounts, and the FDIC work. But it's not fine for the CEO of FTX to do this. It's his job to know this shit, and it's his job to not mislead his customers. [4] [1] And by your, we mean our. [2] And by accounts, we mean our operating accounts. [3] And we don't mean insured against us doing stupid shit with your money, we mean insured against our counterparty running off with our money. [4] Well, it would be if he weren't running a fly-by-night wildcat bank.