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> fact that FTX was selling coins without delivering them I think you missed the point parent was making about the fraud of accepting money for $crypto_thing a
by mattbrewsbytes 4y ago
> fact that FTX was selling coins without delivering them
I think you missed the point parent was making about the fraud of accepting money for $crypto_thing and not actually buying $crypto_thing and just moving the money to the Alameda hedge fund. All of that purchasing never impacted the prices of $crypto_thing.
The other thing that will be interesting is if they uncover fraud around $crypto_things that were supposedly tracking actual SEC regulated securities as a derivative and if any Wall Street finance firms were using those FTX derivatives as part of their business.
- tsimionescu 4y agoEven if that is how it worked, what do you think Alameda was doing with the money it got? It's not like Alameda was investing in the stock markets - it was still pouring it into crypto. As for how the scam worked, my understanding is different - my understanding is that they both bought the token you asked for AND lent the same money to Alameda (who would then go on to buy it's own crypto) - because much of the buying was happening from other FTX accounts, which didn't actually require the dollars. So the same dollars were getting reflected both in the price of the crypto consumers asked for, and again in the prices of the crypto that Alameda was trading.