OT: I am trying to figure out the FTX thing out..

[GloryDawg]

I am trying to figure it out in simple terms...

So basically, people gave Bankman-Fried their money. In return he gave them fake digital money. Then he took the real money, spent it and gave it away? Now there is no real money backing the fake money. They are talking as much as one billion not accounted for. Is that what happened? Also were there no laws broken?

 

[YesIAmAPirate]

 

[8dog]

I am trying to figure it out in simple terms...

So basically, people gave Bankman-Fried their money. In return he gave them fake digital money. Then he took the real money, spent it and gave it away to politicians and others? Now there is no money backing the fake money. They are talking as much as one billion not accounted for. Is that what happened? Also were there no laws broken?

In return, he gave them exactly what they bargained for. A speculative asset with no regulation.

 

[Pars]

Laws were broken. Why he’s allegedly fled to Argentina

 

[jethreauxdawg]

I am trying to figure it out in simple terms...

So basically, people gave Bankman-Fried their money. In return he gave them fake digital money. Then he took the real money, spent it and gave it away? Now there is no real money backing the fake money. They are talking as much as one billion not accounted for. Is that what happened? Also were there no laws broken?

Sounds like you are correct. How did he pulls this off?

 

[dorndawg]

 

[dorndawg]

 

[BigDawg0074]

It’s looking like a money laundering scheme for the DNC to me. He was the second highest donor in 2020.

 

[karlchilders.sixpack]

As the fund values dropped, and people were trying to cash out, he got caught with his pants down.
Skimmed too much, and also lost on investments.
Or something like that.

 

[kb549]

It’s looking like a money laundering scheme for the DNC to me. He was the second highest donor in 2020.

Thread by @bitcoinzay on Thread Reader App

@bitcoinzay: FTX and SBF BREAKDOWN (Thread) MIT: - Glenn Ellison, Dept. Head of Economics - Gary Gensler, SEC Head and former Prof. of Economics Family: - Caroline Ellison, CEO of Alameda, daughter of Glenn - Sam...…

threadreaderapp.com

I am trying to find the other article that lays out a pretty clear (maybe conspiracy theory) as to how the NSA/CIA was behind FTX and used it to gain insight into how international money laundering was moving through the crypto market. And then they used the money to help defeat their biggest threat, Trump. It sounds like a spy novel or Alex Jones blabber, but it’s hard not to give it a look with all the coincidences. My guess is that if there is any truth to it, they screwed up by letting this politically connected kid to “run” it.

Another idea is it was a planned implosion. The government (ours and every other one) doesn’t like loss of control in monetary situations. They’re like the mob. They want a cut of every transaction. They like the idea of tracking every transaction, but only if it isn’t anonymous, and it runs through their sifter.

 

[The Peeper]

 

[Boom Boom]

As the fund values dropped, and people were trying to cash out, he got caught with his pants down.
Skimmed too much, and also lost on investments.
Or something like that.

Sounds exactly like a 19th century Bank run. Who coulda predicted?

 

[Perd Hapley]

Sounds exactly like a 19th century Bank run. Who coulda predicted?

Exactly. It was only a matter of time. No matter what future utility or intrinsic value crypto may have, its completely 17ing dead for good if there is even a 0.1% chance that people who want to cash out can’t do it, and that is now the case basically everywhere. Turns out that FDIC insurance is actually a big deal.

 

[ckDOG]

Exactly. It was only a matter of time. No matter what future utility or intrinsic value crypto may have, its completely 17ing dead for good if there is even a 0.1% chance that people who want to cash out can’t do it, and that is now the case basically everywhere. Turns out that FDIC insurance is actually a big deal.

Looks like a Ponzi. Quacks like a Ponzi. Can we finally call it a Ponzi?

 

[Boom Boom]

Looks like a Ponzi. Quacks like a Ponzi. Can we finally call it a Ponzi?

In this case, not a Ponzi. It looks like it was just fractional banking. Tech Bros thinking they're smarter than everyone else but haven't learned some basic history. So fashionable to look down on government and regulations, but turns out they're there for good reasons and well honed from decades of trial and error.

 

[Ibdancin]

I am trying to figure it out in simple terms...

So basically, people gave Bankman-Fried their money. In return he gave them fake digital money. Then he took the real money, spent it and gave it away? Now there is no real money backing the fake money. They are talking as much as one billion not accounted for. Is that what happened? Also were there no laws broken?

Not exactly....

For example, I will use my own holding. I mine crypto. My holding was smaller because I cash out and convert to stocks monthly. But I did have about $1500 in BTC still in there. I will know by the end of this week if I am going to get that. I would dare say I will not.

But this guy turned it into a laundering scheme. It's all coming out, and nobody will do anything to him. But he used 100 Million to back political candidates. etc.

My miners now send BTC straight to Robinhood where I keep 15% in BTC, and sell the rest off and invest in stocks.

 

[PooPopsBaldHead]

My miners now send BTC straight to Robinhood where I keep 15% in BTC, and sell the rest off and invest in stocks.

Are you in a mining pool or something? I thought the days of individual miners turning a profit had passed.

 

[ckDOG]

In this case, not a Ponzi. It looks like it was just fractional banking. Tech Bros thinking they're smarter than everyone else but haven't learned some basic history. So fashionable to look down on government and regulations, but turns out they're there for good reasons and well honed from decades of trial and error.

Whose fractional banking system were they participating in? Kinda need regs/central banking for the concept to be effective. Maybe we just call it an arrogant investment of customer deposits?

 

[Boom Boom]

Whose fractional banking system were they participating in? Kinda need regs/central banking for the concept to be effective. Maybe we just call it an arrogant investment of customer deposits?

Their own? Not the US one, that's for sure. I agree, banking systems need proper regulation to work effectively.

 

[johnson86-1]

In this case, not a Ponzi. It looks like it was just fractional banking. Tech Bros thinking they're smarter than everyone else but haven't learned some basic history. So fashionable to look down on government and regulations, but turns out they're there for good reasons and well honed from decades of trial and error.

It wasn't just fractional banking. He was handing over billions of dollars in relatively liquid, relatively real assets to related parties and the exchange was receiving back very speculative, illiquid "tokens" created by related parties. On top of that very questionable practice, they also don't appear to have real accounting or controls (or at least that's the impression the people who were asked to bail FTX were left with based on the documentation they were provided).

I think the tokens are where most of the money went. Not sure if it was imbezzlement or if they really were such crypto fanatics they honestly believed they weren't stealing the money when they took it for tokens they more or less created. But probably a good chunk of it just "disappeared" because of lack of accounting and controls. Even if he gave $100M to democrats (the number I had seen was $40M), it's still hard to spend $900M. And it's probably going to be worse than that because I think some of that $1B number was based on inflated valuations of the tokens from related parties. It's probably going to be more than that ultimately "lost".

 

[T-TownDawgg]

I wonder how much of those once valuable assets vanished into Ukraine

 

[HumpDawgy]

 

[Ibdancin]

Are you in a mining pool or something? I thought the days of individual miners turning a profit had passed.

Right Now through Nicehash which pays out in BTC. That payout goes straight to Robinhood.

As to it being profitable. Since Sept, it has not be in profit in a lot of areas due to the current state of the crypto's worth vs electricity. For me, I still make roughly $.25 (yes 25 cents) to $.62 per day per GPU. But that's only due to the very low cost of my electricity. I know people losing that per day.

So, It's me using my resources to make a retirement a bit better with out working extra jobs. I do not expect a "mountain of wealth" from it. Never have.

But I purchase growth and divi stocks and those drip! Adds up over time.

 

[Lawdawg.sixpack]

Should've put their money in real currency alternatives and not fake digital money...

 

[ronpolk]

In return, he gave them exactly what they bargained for. A speculative asset with no regulation.

Yep… turns out some regulation in the financial industry is not such a bad thing.

I have next to no knowledge on this situation but what I’ve read sounds to what amounts to bank run. However, no FDIC to back these deposits.

 

[dog12]

I mine crypto.

This explains a lot.

 

[TheStateUofMS]

Looks like a Ponzi. Quacks like a Ponzi. Can we finally call it a Ponzi?

^^^^THIS 100%

 

[Walkthedawg]

I am trying to figure it out in simple terms...

So basically, people gave Bankman-Fried their money. In return he gave them fake digital money. Then he took the real money, spent it and gave it away? Now there is no real money backing the fake money. They are talking as much as one billion not accounted for. Is that what happened? Also were there no laws broken?

Crypto = Confederate Money.

Not backed by anything. Only value is demand that other people want it. No one wants it? Worthless. Many people want it? Valuable.

difference is, when the value of Confederate money is nothing because no one wants it… you can still hold the Confederate money.

 

[IBleedMaroonDawg]

The next election is gonna be missing a lotta money and the contributions by this guy are already under investigation.

In the 2020 election, Bankman-Fried spent $10 million backing Biden’s campaign. When asked for comment on whether Biden wants those funds to be returned, the White House referred The Post to the Democratic National Committee, which did not reply.

Bankman-Fried was the second-largest donor for congressional Democrats in last week’s midterm election, donating at least $39.2 million — second only to the pro-Democratic billionaire George Soros.

Yeah I know it's the Post but it ain't opinion. (link)

Dude said he would put a billion in the next election if he needed to. Nothing will probably happenn to anyone, but many politicians are going to miss a lot of money in the next election that they had in this recent election.

 

[Pre-Sh.tter]

There was a good discussion on the All-In podcast from Friday that covers it well.

 

[Crazy Cotton]

I am trying to figure it out in simple terms...

So basically, people gave Bankman-Fried their money. In return he gave them fake digital money. Then he took the real money, spent it and gave it away? Now there is no real money backing the fake money. They are talking as much as one billion not accounted for. Is that what happened? Also were there no laws broken?

People got sucked in by greed, tales of the "next big thing" and didn't want to miss out. So they gave their life savings to this guy

 

[jethreauxdawg]

Is this the company Matt Damon was the spokesperson for?

 

[karlchilders.sixpack]

Is this the company Matt Damon was the spokesperson for?

Don't know about Damon but a large group of "Clebs" have been sued over their endorsement of FTX.
Including one recently divorced NFL QB.

 

[Cantdoitsal]

Buyer Beware. Wasn't called "Crypto" fer nuthin' .

 

[Boom Boom]

The next election is gonna be missing a lotta money and the contributions by this guy are already under investigation.

In the 2020 election, Bankman-Fried spent $10 million backing Biden’s campaign. When asked for comment on whether Biden wants those funds to be returned, the White House referred The Post to the Democratic National Committee, which did not reply.

Bankman-Fried was the second-largest donor for congressional Democrats in last week’s midterm election, donating at least $39.2 million — second only to the pro-Democratic billionaire George Soros.

Yeah I know it's the Post but it ain't opinion. (link)

Dude said he would put a billion in the next election if he needed to. Nothing will probably happenn to anyone, but many politicians are going to miss a lot of money in the next election that they had in this recent election.

How much did he give to Republicans?

 

[Dawgbite]

Stupid people got greedy. Smart people got greedier. Smart people 17ed stupid people. Smart people not as smart as they thought they were. People with badges will now try to 17 smart people while stupid people pay for it. Or something like that.

 

[ckDOG]

The next election is gonna be missing a lotta money and the contributions by this guy are already under investigation.

In the 2020 election, Bankman-Fried spent $10 million backing Biden’s campaign. When asked for comment on whether Biden wants those funds to be returned, the White House referred The Post to the Democratic National Committee, which did not reply.

Bankman-Fried was the second-largest donor for congressional Democrats in last week’s midterm election, donating at least $39.2 million — second only to the pro-Democratic billionaire George Soros.

Yeah I know it's the Post but it ain't opinion. (link)

Dude said he would put a billion in the next election if he needed to. Nothing will probably happenn to anyone, but many politicians are going to miss a lot of money in the next election that they had in this recent election.

I don't know. Unless there are some bigger numbers going to drop, this aspect of it seems like some coping material for the conservative base to obsess over after a disappointing election cycle. We are talking 30-40s of millions of dollars on a multi-billion-dollar F-up. Plus, the CEO and other FTX execs were contributing to republicans as well. If there's a billion dollar batch of contributions that the democrats can't explain, I'll buy the possibility of partisan shenanigans. Until then, sounds like some rich folks trying to throw around their weight in Washington with their recently acquired F U money. I'm not a fan of that as much as any other average schmuck, but is that news now?

 

[karlchilders.sixpack]

How much did he give to Republicans?

Don't know, but he was second only to G. Soros for Dems.

 

[ckDOG]

Stupid people got greedy. Smart people got greedier. Smart people 17ed stupid people. Smart people not as smart as they thought they were. People with badges will now try to 17 smart people while stupid people pay for it. Or something like that.

A tale as old as time.

 

[horshack.sixpack]

Looks like a Ponzi. Quacks like a Ponzi. Can we finally call it a Ponzi?

No no no. We just need a few more investors.***