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They had to bail out Alameda because Alameda was propping up FTX. I have seen nothing that indicates FTX would have been fine standing alone, and plenty to indi
by jaywalk 4y ago
They had to bail out Alameda because Alameda was propping up FTX. I have seen nothing that indicates FTX would have been fine standing alone, and plenty to indicate the opposite.
It was a giant scam. All of it.
- zeven7 4y agoRight, traders flocked to FTX because it was lucrative, and it was lucrative because Alameda was bleeding money as FTX's market maker.
- Tenoke 4y agoI mean, I don't see how it could've been losing money. Even if it had less users surely the fees they take more than make-up for the costs the exchange itself has.
- jandrese 4y agoThey were paying out guaranteed 15% returns "with no risk" to investors. Basically a textbook Ponzi scheme pitch and yet again it worked. https://www.theblock.co/post/186187/alameda-promised-high-returns-with-no-risk-in-2018-pitch https://www.theblock.co/post/186187/alameda-promised-high-re...
- Tenoke 4y agoAgain, that's the Alameda arm, I'm talking about the exchange.
- jandrese 4y agoThey were all connected at the hip. You can't talk about only one because it's all one big fraud spit across a bunch of domains to dazzle investors. There is some evidence that they "passed" the audits by moving all of the money around the companies while auditing them one at a time using a hidden money transfer function written by SBF.