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The point they're making, I think, is that FTX bought various shitcoins from other people in exchange for USD. Value can disappear, but that's not what happened
by kaashif 4y ago
The point they're making, I think, is that FTX bought various shitcoins from other people in exchange for USD. Value can disappear, but that's not what happened to the actual dollars they spent.
I'm not positive this whole thing was some kind of planned conspiracy, it just seems like idiocy and fraud catching up with them. I don't think any competent fraudster would get caught in such an embarrassing way.
- iudqnolq 4y agoOne theory is that it was their users. That is, Alameda lost huge amounts taking the other side of trades on FTX, and then FTX stole customer money and gave it to Alameda to compensate
- remarkEon 4y agoGiven this all happened on the "block chain", wouldn't it be possible to confirm this theory? Btw, I find this explanation compelling - I'm not challenging it necessarily.
- cykros 4y agoThe block chain shows the bitcoin moving from one address to another. That's about it. It doesn't say what was exchanged for it, be that USD, FTT, or any other token, good, or service. And those addresses are potentially pseudonymous to boot, at least if the BTC is withdrawn. If it ISN'T withdrawn, it's entirely plausible that the transactions took place off chain in the first place -- simply moving numbers around in an internal database while staying right in the same, FTX owned wallet. What you'd call in the trad fi space "holding assets in street name."