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It's getting even crazier. Some researchers are thinking hedge funds used FTX wrapped securities to fake stock locates for collateral. If this is true... everyt

It's getting even crazier. Some researchers are thinking hedge funds used FTX wrapped securities to fake stock locates for collateral. If this is true... everything is about to blow up.

hn_throwaway_99 4y ago
Do you have any evidence or sources for that? IMO major allegations like that deserve to be downvoted unless there is something backing them up.
ProjectArcturis 4y ago
What does "FTX wrapped securities" even mean? Everything I've read says they invested in crypto-related stuff, not publicly traded stocks in unrelated industries.
- paulproteus 4y ago
  In May, FTX.us announced stock & ETF trading: https://www.investopedia.com/ftxus-launches-stock-brokerage-5295707 https://www.investopedia.com/ftxus-launches-stock-brokerage-... I don't know anything about how it worked or who used it, etc. I wonder if it relates somehow to this idea of wrapped securities though.
  - mattbrewsbytes 4y ago
    > The exchange will provide no-fee brokerage accounts and commission-free trading. CEO of FTX, Sam Bankman-Fried, recently acquired a 7.6% stake in Robinhood, which also provides fee- and commission-free brokerage services. Sounds like it was to allow people to move funds from crypto into US stocks. If that was the case and that business also went bankrupt then I think people lose whatever stocks they "bought" via FTX Stocks because they likely just tracked prices and made it look like people "owned" a security by updating a record that says they bought it. If there were huge numbers of purchases of stocks through FTX by their customers but then FTX didn't actually purchase those stocks (like the recent findings that they didn't actually purchase the crypto) then I don't see how this makes any bit of difference to whatever stocks are in question. Its not like they were ever actually purchased and FTX is in bankruptcy so any FTX customers are left with legal avenues to get money back but it appears there's no money to get.
    - ProjectArcturis 4y ago
      If that's how they handled stock trades, that's (another) felony fraud.
Jerrrry 4y ago
GME cultists are trying to pin their bags on the crypto space. Compushare got yall so hard, lmao.
snapcaster 4y ago
This comment gives me serious gamestop baggie vibes

It's getting even crazier. Some researchers are thinking hedge funds used FTX wrapped securities to fake stock locates for collateral. If this is true... everything is about to blow up.

hn_throwaway_99 4y ago

Do you have any evidence or sources for that? IMO major allegations like that deserve to be downvoted unless there is something backing them up.

ProjectArcturis 4y ago

What does "FTX wrapped securities" even mean? Everything I've read says they invested in crypto-related stuff, not publicly traded stocks in unrelated industries.

paulproteus 4y ago
In May, FTX.us announced stock & ETF trading: https://www.investopedia.com/ftxus-launches-stock-brokerage-5295707 https://www.investopedia.com/ftxus-launches-stock-brokerage-... I don't know anything about how it worked or who used it, etc. I wonder if it relates somehow to this idea of wrapped securities though.
- mattbrewsbytes 4y ago
  > The exchange will provide no-fee brokerage accounts and commission-free trading. CEO of FTX, Sam Bankman-Fried, recently acquired a 7.6% stake in Robinhood, which also provides fee- and commission-free brokerage services. Sounds like it was to allow people to move funds from crypto into US stocks. If that was the case and that business also went bankrupt then I think people lose whatever stocks they "bought" via FTX Stocks because they likely just tracked prices and made it look like people "owned" a security by updating a record that says they bought it. If there were huge numbers of purchases of stocks through FTX by their customers but then FTX didn't actually purchase those stocks (like the recent findings that they didn't actually purchase the crypto) then I don't see how this makes any bit of difference to whatever stocks are in question. Its not like they were ever actually purchased and FTX is in bankruptcy so any FTX customers are left with legal avenues to get money back but it appears there's no money to get.
  - ProjectArcturis 4y ago
    If that's how they handled stock trades, that's (another) felony fraud.

Jerrrry 4y ago

GME cultists are trying to pin their bags on the crypto space. Compushare got yall so hard, lmao.

snapcaster 4y ago

This comment gives me serious gamestop baggie vibes