3 ms·

> Sam owns 8% of Robin Hood that is worth around ~$1B - he could sell that and cover some of the gap. Not knowing too much about this space have you ever seen

> Sam owns 8% of Robin Hood that is worth around ~$1B - he could sell that and cover some of the gap. Not knowing too much about this space have you ever seen anything like this happen? A CEO using their personal wealth to cover their customers funds seems unlikely.

tanseydavid 4y ago
Free Jon Corzine!
dmitrygr 4y ago
> have you ever seen anything like this happen? A CEO using their personal wealth to cover their customers funds No, but I would love to see it happen, enforced by a court, and backed by a promise of jail time if the CEO fails to comply in a timely fashion.
fantasyman1 4y ago
> A CEO using their personal wealth to cover their customers funds seems unlikely. It’s in the category of “desperately wants to be true” of crypto crash denial. I’ve been lampooning people defending FTX in Hacker News all day. This is what I come here for!
FormerBandmate 4y ago
This isn’t a thing, limited liability (which is the fundamental principle that distinguishes corporations from partnerships) prevents this. The only way would be if SBF was charged with defrauding FTX
eftychis 4y ago
That can't happen directly (I think). Mingling breaks the limited liability mantle. He will have to buy equity or other product from FTX to infuse with cash. And if it is going bankrupt he has to stop running it to preserve the liability "shield" -- details of course depend on the country/state of organization/incorporation. I know nothing about the Bahamas. Example: Elon for instance infused his own cash into Tesla, when it was going bankrupt. But he practically bought equity to my understanding. Covering customer accounts is different, in a financial firm. I do not know what tools the Bahamas give to FTX. This is all uncharted territory. (Also there is legal exposure to other countries.)

3 ms·

> Sam owns 8% of Robin Hood that is worth around ~$1B - he could sell that and cover some of the gap. Not knowing too much about this space have you ever seen

by lancesells 4y ago

tanseydavid 4y ago
Free Jon Corzine!
dmitrygr 4y ago
> have you ever seen anything like this happen? A CEO using their personal wealth to cover their customers funds No, but I would love to see it happen, enforced by a court, and backed by a promise of jail time if the CEO fails to comply in a timely fashion.
fantasyman1 4y ago
> A CEO using their personal wealth to cover their customers funds seems unlikely. It’s in the category of “desperately wants to be true” of crypto crash denial. I’ve been lampooning people defending FTX in Hacker News all day. This is what I come here for!
FormerBandmate 4y ago
This isn’t a thing, limited liability (which is the fundamental principle that distinguishes corporations from partnerships) prevents this. The only way would be if SBF was charged with defrauding FTX
eftychis 4y ago
That can't happen directly (I think). Mingling breaks the limited liability mantle. He will have to buy equity or other product from FTX to infuse with cash. And if it is going bankrupt he has to stop running it to preserve the liability "shield" -- details of course depend on the country/state of organization/incorporation. I know nothing about the Bahamas. Example: Elon for instance infused his own cash into Tesla, when it was going bankrupt. But he practically bought equity to my understanding. Covering customer accounts is different, in a financial firm. I do not know what tools the Bahamas give to FTX. This is all uncharted territory. (Also there is legal exposure to other countries.)