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Imagine spending 25 years in federal prison knowing you might have avoided it if only you had not filed for bankruptcy.
by olalonde 2y ago
Imagine spending 25 years in federal prison knowing you might have avoided it if only you had not filed for bankruptcy.
- paulpauper 2y agoblame CZ. had he not triggered the run on FTX assets by making those tweets, likely FTX had enough assets to survive until Bitcoin began its rebound.
- immibis 2y agoThis wouldn't help because it would still not have enough Bitcoins to pay its customers.
- paulpauper 2y agothere are hundreds of exchanges. how many of them are fully collateralized? doubt all of them are.
- kelnos 2y agoThen they're not exchanges. They're just places to put assets while the people who run them do whatever they want with those assets.
- olalonde 2y agoThose that aren't fully collateralized are committing fraud.
- immibis 2y agoOr they are banks. Fun fact: I got a permanent ban from the r/cryptocurrency discord for saying exactly this.
- kelnos 2y agoI see a disturbing trend in your posts: you seem to want to place the blame anywhere but on SBF's shoulders, where it rightfully belongs. Exchanges shouldn't be like banks. FTX should have had customer assets on hand to return, no matter what. That's how regulated exchanges are supposed to work. But this is crypto-land, where nobody does the right thing.
- yieldcrv 2y agoalthough I agree because SBF shouldn't have been running the exchange like this at all the truth is that in the US none of this gets prosecuted while people are making money, or being reimbursed as a remedy at the company's own volition. very few exceptions, you basically have to piss off a completely different industry, like bragging about raising drug prices instead of silently like everyone else, for prosecutors to search for improper accounting to nail you with.
- lolc 2y agoSo could FTX, at the time of its bankruptcy, let everybody get the assets they had title to? Because that was the issue wasn't it? They said they were holding stuff for customers, but didn't. The way I understood it the fraudsters only held a fraction of the Bitcoin they were supposed to hold, for example. How would the scenario work where bankruptcy wasn't declared? They would have refused to provide assets to customers, the customers would have sued, and the fraud would have come out anyway. Delaying discovery when you're underwater on your obligations means you're just piling on more crimes. Which is probably what lawyers explained to the chief fraudster. It gets harder and harder to claim an honest mistake.
- garaetjjte 2y agoNo, it only works because of magic of bankruptcy law converting liabilities to dollar value at the time of filling.
- olalonde 2y agoAh I see, so they didn't recover the actual crypto that was owed, just the estimated USD value at the moment of bankruptcy? By the way, I didn't mean to imply SBF wasn't guilty, simply that he might have been able to cover up the fraud if he had been given a bit more time.