4 ms·

I’m pretty ignorant when it comes to this space. Do they not have any kind of compliance structure? In hindsight it seems pretty obvious that this sort of thing

I’m pretty ignorant when it comes to this space. Do they not have any kind of compliance structure? In hindsight it seems pretty obvious that this sort of thing would happen without it.

hacker_lady 4y ago
convolvatron 4y ago
compliance to what? all those regulations are just hindering the operation of the free market, and we started this whole crypto thing to avoid them on purpose?
exolymph 4y ago
Well, they at least had compliance staff. "Most of FTX's legal and compliance staff quit Tuesday evening, people familiar with the matter told Semafor, leaving few executives who could answer questions that now loom large over the firm." https://www.semafor.com/article/11/09/2022/ftx-legal-and-compliance-teams-quit https://www.semafor.com/article/11/09/2022/ftx-legal-and-com... Pretty much every large exchange has a compliance team, btw, at least the ones with US operations.
- Panzer04 4y ago
  I mean, would you stay around to answer those sticky questions? They demonstrably failed at their only job.
fnordpiglet 4y ago
They’re not securities and they’re regulated. Theres nothing to comply to. Perhaps crypto exchanges should be regulated?
Zamiel_Snawley 4y ago
One thing to note is that FTX.us is an affiliated company that is onshore in the US, that does have compliance requirements, and FTX.us is currently not believed to be insolvent/bankrupt. *This may not be true, there are rumors that I haven't looked into that FTX.us is halting withdrawals, which does not bode well.* FTX.com is some conglomeration of entities incorporated in Antigua, Bermuda, and the Bahamas[1]. FTX.com is the one that has blown up, and I won't pretend to know about the reporting requirements of such a complicated structure in multiple jurisdictions. Also, Sam Bankman-Fried owned 90% of Alameda Research as of last year. So unless that changed(I can't find evidence it has), it looks to me like he tried to bail himself out with customers' money. Presumably he thought he could return the money eventually and no one would be the wiser. So much for that. This is just my understanding and I am not an expert in these things. [1] https://help.ftx.com/hc/en-us/articles/360056976411 https://help.ftx.com/hc/en-us/articles/360056976411 [2] https://finance.yahoo.com/news/ftx-ceo-sam-bankman-fried-profile-085444366.html https://finance.yahoo.com/news/ftx-ceo-sam-bankman-fried-pro...
- bogomipz 4y ago
  Isn't it quite possible there might be contagion there though as well? For instance the NY Times had the following in a piece they just published: >"Mr. Bankman-Fried is also facing dissent from within the senior ranks of FTX. On Wednesday night, the general counsel for FTX’s U.S. arm wrote on an internal messaging system that he had “advised U.S. regulators of my instruction to founders to turn off functionality” of the websites for FTX and the U.S. arm, according to two people who saw the message and a screenshot that has circulated on Twitter. “Sam has a different perspective than me on this,” wrote the lawyer, Ryne Miller. He added that “we should not be optimistic for an outcome that is positive.” The post was swiftly deleted."[1] [1] https://www.nytimes.com/2022/11/10/technology/ftx-crypto-exchange.html https://www.nytimes.com/2022/11/10/technology/ftx-crypto-exc...
WalterSear 4y ago
That's the whole promise of the thing. Think how much cheaper and faster cars could be, if we didn't have to spend resources on seatbelts and catalytic converters. The entrenched car hegemony are in bed with the government to keep the little guy down by requiring these things.
chaosbolt 4y ago
>Do they not have any kind of compliance structure? Not really, but again banks don't have compliance against this either, it's just that people are less likely to withdraw their money from the bank at the same time, and when they do the gov will tell the fed to print more, and with crypto you can't print more, so a bankrun has immediate effects.

I’m pretty ignorant when it comes to this space. Do they not have any kind of compliance structure? In hindsight it seems pretty obvious that this sort of thing would happen without it.

hacker_lady 4y ago

convolvatron 4y ago

compliance to what? all those regulations are just hindering the operation of the free market, and we started this whole crypto thing to avoid them on purpose?

exolymph 4y ago

Well, they at least had compliance staff. "Most of FTX's legal and compliance staff quit Tuesday evening, people familiar with the matter told Semafor, leaving few executives who could answer questions that now loom large over the firm." https://www.semafor.com/article/11/09/2022/ftx-legal-and-compliance-teams-quit https://www.semafor.com/article/11/09/2022/ftx-legal-and-com... Pretty much every large exchange has a compliance team, btw, at least the ones with US operations.

Panzer04 4y ago
I mean, would you stay around to answer those sticky questions? They demonstrably failed at their only job.

fnordpiglet 4y ago

They’re not securities and they’re regulated. Theres nothing to comply to. Perhaps crypto exchanges should be regulated?

Zamiel_Snawley 4y ago

One thing to note is that FTX.us is an affiliated company that is onshore in the US, that does have compliance requirements, and FTX.us is currently not believed to be insolvent/bankrupt. *This may not be true, there are rumors that I haven't looked into that FTX.us is halting withdrawals, which does not bode well.* FTX.com is some conglomeration of entities incorporated in Antigua, Bermuda, and the Bahamas[1]. FTX.com is the one that has blown up, and I won't pretend to know about the reporting requirements of such a complicated structure in multiple jurisdictions. Also, Sam Bankman-Fried owned 90% of Alameda Research as of last year. So unless that changed(I can't find evidence it has), it looks to me like he tried to bail himself out with customers' money. Presumably he thought he could return the money eventually and no one would be the wiser. So much for that. This is just my understanding and I am not an expert in these things. [1] https://help.ftx.com/hc/en-us/articles/360056976411 https://help.ftx.com/hc/en-us/articles/360056976411 [2] https://finance.yahoo.com/news/ftx-ceo-sam-bankman-fried-profile-085444366.html https://finance.yahoo.com/news/ftx-ceo-sam-bankman-fried-pro...

bogomipz 4y ago
Isn't it quite possible there might be contagion there though as well? For instance the NY Times had the following in a piece they just published: >"Mr. Bankman-Fried is also facing dissent from within the senior ranks of FTX. On Wednesday night, the general counsel for FTX’s U.S. arm wrote on an internal messaging system that he had “advised U.S. regulators of my instruction to founders to turn off functionality” of the websites for FTX and the U.S. arm, according to two people who saw the message and a screenshot that has circulated on Twitter. “Sam has a different perspective than me on this,” wrote the lawyer, Ryne Miller. He added that “we should not be optimistic for an outcome that is positive.” The post was swiftly deleted."[1] [1] https://www.nytimes.com/2022/11/10/technology/ftx-crypto-exchange.html https://www.nytimes.com/2022/11/10/technology/ftx-crypto-exc...

WalterSear 4y ago

That's the whole promise of the thing. Think how much cheaper and faster cars could be, if we didn't have to spend resources on seatbelts and catalytic converters. The entrenched car hegemony are in bed with the government to keep the little guy down by requiring these things.

chaosbolt 4y ago

>Do they not have any kind of compliance structure? Not really, but again banks don't have compliance against this either, it's just that people are less likely to withdraw their money from the bank at the same time, and when they do the gov will tell the fed to print more, and with crypto you can't print more, so a bankrun has immediate effects.