3 ms·

At least $1B of client funds missing at failed crypto firm FTX

42 points by VagueMag 4y ago

stevehind 4y ago
yikes
- RGamma 4y ago
  More like yawn. All news I read about crypto are about: platforms going bust/making off with user funds, get-rich-quick scheme and gambling spam, shitcoins crashing (bankrupting irresponsible investors or scam victims in the process), environmental pollution. This has been ever since bitcoin took off which started this collective madness.
neonate 4y ago
https://archive.ph/dZZ9U https://archive.ph/dZZ9U https://web.archive.org/web/20221112043232/https://www.reuters.com/markets/currencies/exclusive-least-1-billion-client-funds-missing-failed-crypto-firm-ftx-sources-2022-11-12/ https://web.archive.org/web/20221112043232/https://www.reute...
sergiomattei 4y ago
Yikes. The news seem to be that they’ve been hacked on all platforms, and all customer funds are gone. On another hand, how convenient.
wwfzyn 4y ago
This seems like a big flaw of crypto. Banks don't have their customers actual money. Crypto does. All that money in one place, under the control of a few, so tempting.
- hericium 4y ago
  Banks do have their customers money but are regulated and customers are protected.
  - wwfzyn 4y ago
    I stand corrected.
vecter 4y ago
> Spreadsheets indicated between $1 billion and $2 billion in client money is unaccounted for > Executives set up book-keeping "back door" that thwarted red flags > Whereabouts of missing funds is unknown I know I shouldn’t be surprised, but the part of the book-keeping “back door” that executives set up is mind-blowing to me. If I worked at a company and it was clear that we were breaking the law, I’d resign and get out as fast as possible, not aid in the fraud and risk going to jail myself. Crazy.
dang 4y ago
Ongoing related thread: FTX faces potential hack, sees mysterious outflows totaling more than $600M - https://news.ycombinator.com/item?id=33570274 https://news.ycombinator.com/item?id=33570274 - Nov 2022 (82 comments)
icedata 4y ago
you know, a billion here and a billion there, pretty soon you're talking about real money.

42 points by VagueMag 4y ago

stevehind 4y ago

yikes

RGamma 4y ago
More like yawn. All news I read about crypto are about: platforms going bust/making off with user funds, get-rich-quick scheme and gambling spam, shitcoins crashing (bankrupting irresponsible investors or scam victims in the process), environmental pollution. This has been ever since bitcoin took off which started this collective madness.

neonate 4y ago

https://archive.ph/dZZ9U https://archive.ph/dZZ9U https://web.archive.org/web/20221112043232/https://www.reuters.com/markets/currencies/exclusive-least-1-billion-client-funds-missing-failed-crypto-firm-ftx-sources-2022-11-12/ https://web.archive.org/web/20221112043232/https://www.reute...

sergiomattei 4y ago

Yikes. The news seem to be that they’ve been hacked on all platforms, and all customer funds are gone. On another hand, how convenient.

wwfzyn 4y ago

This seems like a big flaw of crypto. Banks don't have their customers actual money. Crypto does. All that money in one place, under the control of a few, so tempting.

hericium 4y ago
Banks do have their customers money but are regulated and customers are protected.
- wwfzyn 4y ago
  I stand corrected.

vecter 4y ago

> Spreadsheets indicated between $1 billion and $2 billion in client money is unaccounted for > Executives set up book-keeping "back door" that thwarted red flags > Whereabouts of missing funds is unknown I know I shouldn’t be surprised, but the part of the book-keeping “back door” that executives set up is mind-blowing to me. If I worked at a company and it was clear that we were breaking the law, I’d resign and get out as fast as possible, not aid in the fraud and risk going to jail myself. Crazy.

dang 4y ago

Ongoing related thread: FTX faces potential hack, sees mysterious outflows totaling more than $600M - https://news.ycombinator.com/item?id=33570274 https://news.ycombinator.com/item?id=33570274 - Nov 2022 (82 comments)

icedata 4y ago

you know, a billion here and a billion there, pretty soon you're talking about real money.