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>this is exactly what happended at FTX/Alameda. A bunch of "smart" guys [...] No, they're different situations. The current details trickling out of the FTX s
by jasode 4y ago
>this is exactly what happended at FTX/Alameda. A bunch of "smart" guys [...]
No, they're different situations.
The current details trickling out of the FTX scandal is that CEO Samuel Bankman-Fried secretly used customer funds to prop up Alameda which is unethical and criminal. This is fraud.
In contrast, the LTCM guys lost billions honestly and transparently via flawed math models based on overconfident assumptions of price spread behavior. That wasn't criminal fraud. There was no illegal transfer of investor funds.
- naijaboiler 4y agoignore the fraudulent part of covering up the money, how Alameda lost money is the same as how LTCM guys lost money. guys who think they are too smart and made wrong predictions about the market. That part is very very similar. SBF then compounded it by layering fraud on top of the "im too smart to fail" losses by using customer funds to cover up the losses.