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No one is mentioning that the new FTX CEO wrote in a recent Chapter 11 filing that the hack we're discussing here was actually 2 events: the movement of ~$300 i

by 55555 4y ago

No one is mentioning that the new FTX CEO wrote in a recent Chapter 11 filing that the hack we're discussing here was actually 2 events: the movement of ~$300 in crypto AND the dilutive printing of ~$300 in FTT. Can somebody please explain that second one? Because this makes no sense at all.

easytiger 4y ago
As per FT: > The “dilutive ‘minting’ of approximately $300m in FTT tokens by an unauthorised source” after FTX filed for bankruptcy. That’s along with the $372m hack. Guessing: post ftx collapse someone minted new ftt tokens. Which should be strange because only FTX should have been able to do so.
- 55555 4y ago
  Maybe SBF & co minted more FTT in order to dump to increase fiat liquidity during the withdrawal phase, and then right after had to hand everything over to the Bahamas. This isn’t the timeline popularly floated, tho
  - meltedcapacitor 4y ago
    The mint was after withdrawals have stopped, and it does not look like they had run out of unlocked FTT. In any case there was no buyer in size, so if they had dumped all they could the meagre proceeds would have probably been enough for like an extra half hour worth of withdrawals.
manholio 4y ago
It doesn't really matter, FTT is a garbage token forever associated with fraud. Its value is zero and you can print how many you like without hurting anyone.
- 55555 4y ago
  It matters a lot. Bahamas seizing existing crypto makes sense. Printing more and diluting holders is just bizarre. That would basically be the Bahamas doing a rugpull.
  - dasil003 4y ago
    Why are you assuming the Bahamas did the minting?
    - 55555 4y ago
      Because the article we are commenting on seems to be the Bahamas gov taking credit for the minting. “477M” is more than the 300m moved so must involve the mint as well. But it makes little sense why they would mint.
helsinkiandrew 4y ago
Perhaps this is a noob question but are those 2 related? When SBF was ordered to hand over $300M of tokens did he create $300M of FTT - technically complying with the order but not at the same time - that does sound like an SBF play. He previously stated that FTX weren't trading with customer deposits, technically true - the deposits were loaned to Alamada who were trading with them.

by 55555 4y ago

easytiger 4y ago

As per FT: > The “dilutive ‘minting’ of approximately $300m in FTT tokens by an unauthorised source” after FTX filed for bankruptcy. That’s along with the $372m hack. Guessing: post ftx collapse someone minted new ftt tokens. Which should be strange because only FTX should have been able to do so.

55555 4y ago
Maybe SBF & co minted more FTT in order to dump to increase fiat liquidity during the withdrawal phase, and then right after had to hand everything over to the Bahamas. This isn’t the timeline popularly floated, tho
- meltedcapacitor 4y ago
  The mint was after withdrawals have stopped, and it does not look like they had run out of unlocked FTT. In any case there was no buyer in size, so if they had dumped all they could the meagre proceeds would have probably been enough for like an extra half hour worth of withdrawals.

manholio 4y ago

It doesn't really matter, FTT is a garbage token forever associated with fraud. Its value is zero and you can print how many you like without hurting anyone.

55555 4y ago
It matters a lot. Bahamas seizing existing crypto makes sense. Printing more and diluting holders is just bizarre. That would basically be the Bahamas doing a rugpull.
- dasil003 4y ago
  Why are you assuming the Bahamas did the minting?
  - 55555 4y ago
    Because the article we are commenting on seems to be the Bahamas gov taking credit for the minting. “477M” is more than the 300m moved so must involve the mint as well. But it makes little sense why they would mint.

helsinkiandrew 4y ago

Perhaps this is a noob question but are those 2 related? When SBF was ordered to hand over $300M of tokens did he create $300M of FTT - technically complying with the order but not at the same time - that does sound like an SBF play. He previously stated that FTX weren't trading with customer deposits, technically true - the deposits were loaned to Alamada who were trading with them.