5 ms·

Well it's not clear how much customer funds were diverted to SBF & co if any at all (though the recent "hack" makes me incredibly suspicious). If that Coindesk

by from 4y ago

Well it's not clear how much customer funds were diverted to SBF & co if any at all (though the recent "hack" makes me incredibly suspicious). If that Coindesk article never was released Alameda could've eventually paid back the loan to FTX and no one on the outside would've been the wiser. If they wanted to just exit scam the customer funds there would've been a much cleaner way to do it where by the time anyone found out they'd already be in some GCC country or Moscow.

mudrockbestgirl 4y ago
> If that Coindesk article never was released Alameda could've eventually paid back the loan to FTX and no one on the outside would've been the wiser. I don't know about that, the loans were huge. Billions of dollars. It's extremely unlikely that a (unprofitable) hedge fund can turn around its business and make that money back in a short time frame. Not impossible, but very unlikely. It must've been obvious to the insiders that the probability they'll get away with this is very low. Hard to believe they'd gamble their lives on that small chance. I'm wondering how exactly Alameda managed to be so unprofitable. They literally had the easiest trading job in the world: Market make on their own exchange while seeing all order flow and being able to front-run anyone they want.
- bhouston 4y ago
  I think everyone else thought this too: > I'm wondering how exactly Alameda managed to be so unprofitable. They literally had the easiest trading job in the world: Market make on their own exchange while seeing all order flow and being able to front-run anyone they want. This is why FTX imploding was a surprise. We thought they were profiting from their own order flow. No need for a true scam.
oldgradstudent 4y ago
> If that Coindesk article never was released Alameda could've eventually paid back the loan to FTX and no one on the outside would've been the wiser. Alameda needed the loan because they were losing money. Why did you assume they would have been able to suddenly make the required billions?
lost_tourist 4y ago
Yeah very few things that are that copacetic are actually "coincidences" so I suspect you are right. The only other thing I could come up with were Russian/Chinese/North Korean hackers had a back door, read Bloomberg, and drained it while they could.

by from 4y ago

mudrockbestgirl 4y ago

> If that Coindesk article never was released Alameda could've eventually paid back the loan to FTX and no one on the outside would've been the wiser. I don't know about that, the loans were huge. Billions of dollars. It's extremely unlikely that a (unprofitable) hedge fund can turn around its business and make that money back in a short time frame. Not impossible, but very unlikely. It must've been obvious to the insiders that the probability they'll get away with this is very low. Hard to believe they'd gamble their lives on that small chance. I'm wondering how exactly Alameda managed to be so unprofitable. They literally had the easiest trading job in the world: Market make on their own exchange while seeing all order flow and being able to front-run anyone they want.

bhouston 4y ago
I think everyone else thought this too: > I'm wondering how exactly Alameda managed to be so unprofitable. They literally had the easiest trading job in the world: Market make on their own exchange while seeing all order flow and being able to front-run anyone they want. This is why FTX imploding was a surprise. We thought they were profiting from their own order flow. No need for a true scam.

oldgradstudent 4y ago

> If that Coindesk article never was released Alameda could've eventually paid back the loan to FTX and no one on the outside would've been the wiser. Alameda needed the loan because they were losing money. Why did you assume they would have been able to suddenly make the required billions?

lost_tourist 4y ago

Yeah very few things that are that copacetic are actually "coincidences" so I suspect you are right. The only other thing I could come up with were Russian/Chinese/North Korean hackers had a back door, read Bloomberg, and drained it while they could.