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"I'm going to raise new investor money to pay my old investors off" is also, you know, the literal definition of a Ponzi scheme.
by cheald 4y ago
"I'm going to raise new investor money to pay my old investors off" is also, you know, the literal definition of a Ponzi scheme.
- floydnoel 4y agoyeah, this is the part i keep thinking but haven’t seen anybody else saying. the problem isn’t really that “he just needs to raise more money” to make the existing customers whole. it’s that he thinks he can raise more money from investors, and then give it to defrauded customers. what exactly would the “investors” get in this scenario?! A Ponzi ticket? ownership in FTX? he still owes the money after that! it’s like he can’t think more than one step at a time or something. could be the root cause of his issues, i guess
- itsthejb 4y agoIs this the reductio ad absurdum of VC culture, whereby founders stop even considering that overall profit is (eventually) an end goal, and that VCs don’t pick from an endless money tree? In the case of FTX, some reports seem to suggest that VCs themselves have lost sight of this
- unmole 4y agoI'm not sure if customers of FTX should count as investors. They are creditors and should have a senior claim on whatever remains. FTX is just your garden variety scam, not a Ponzi.