There is a rumour of FTX insolvency

[Nicholas Van Orton]

As much as $2 billion in FTX customers' funds has reportedly vanished from the collapsed crypto exchange​

https://markets.businessinsider.com...ing-collapse-bankruptcy-bankman-fried-2022-11
---- quote start

Last week, Bankman-Fried shared documents with other FTX executives that showed the missing funds, Reuters reported. The materials revealed a "back door" into the company's books built using bespoke software.

The sources said the "backdoor" allowed Bankman Fried to alter the company's financial records without alerting other people. That meant the transfer of $10 billion did not set off any alarms, they said.

---- quote end

Hey! this would make Nick Leeson and his 88888 account proud! We're going back to the 90s! ... bespoke software, lol... it's called "accountancy magic (tricks)" and it's as old as financial derivatives started to come into play...

 

[RealDude]

Recently, one of Germany's best-known chefs was sentenced to prison for at least 3 years for using bespoke software. He was the topic of conversation for days. But unlike this topic here a small fish.

 

[georgio]

What would be the way for Ftx users to get money back? Lawsuit in the U.S. ? In Bahamas? With Cyprus SEC?

 

[JohnnyDoe]

What would be the way for Ftx users to get money back? Lawsuit in the U.S. ?

It depends whom you signed an agreement with.

In Bahamas?

Lol

With Cyprus SEC?

Double lol

 

[troubled soul]

There is zero chance of recovery.....IF they hack the customer money as they did , It is very hard to prove in court that they are the real culprit....Better to move on ...FTX Customers are fighting losing game

 

[troubled soul]

“Virtue sometimes pretends. Vice is always sincere.” – Mason Cooley

 

[polonieth]

You could try sending a letter to Zelenskiy asking where it went.

 

[RealDude]

FTX bankruptcy filings in, French central bank wants quick regulation​

French central bank Governor Francois Villeroy de Galhau in a speech in Tokyo called for a global regulatory response to financial uncertainty caused by the crypto market.

"Let me stress that this uncertainty is why we need to regulate strongly and quickly crypto assets internationally," he said. "The last episodes show us that we cannot allow for a second 'crypto winter' to still add to uncertainty and financial instability."

On Monday, officials from the U.S. Federal Reserve and legislature called for crypto finance to come under greater regulatory scrutiny.

https://www.reuters.com/technology/ftx-officials-contact-with-us-regulators-filing-2022-11-15/

 

[georgio]

There is zero chance of recovery.....IF they hack the customer money as they did , It is very hard to prove in court that they are the real culprit....Better to move on ...FTX Customers are fighting losing game

It's not about their wallets which are empty.. It's about fraud that has happened, so all companies linked to Bankman should be liquidated (illiquid assets, properties etc), and remaining of funds should be returned to users. Also Cyprus SEC clearly say they cover up to 20k Euro. All Ftx clients are under this license, or else it would be illegal to keep their account. But ofc there's a need for class lawsuits for all this.

 

[backpacker]

Cyprus SEC clearly say they cover up to 20k Euro.

Some people forget fast.
How can you expect "help" from a country that seized (i.e. robbed) funds from thousands of bank account holders a mere 10 years ago.

 

[JohnnyDoe]

A good (and well paid) liquidator will employ blockchain forensic experts to track all the blockchain transactions. There can be clawbacks, if they want, including from Dems, foreign mediocre comedians etc… if they want…

 

[Nicholas Van Orton]

There is zero chance of recovery.....IF they hack the customer money as they did , It is very hard to prove in court that they are the real culprit....Better to move on ...FTX Customers are fighting losing game

"Hack" is the code word we use today, eh? We used to call it 'stelaing from the gullible idiot$' before, it is much more realistic. LOL

FTX bankruptcy filings in, French central bank wants quick regulation​

French central bank Governor Francois Villeroy de Galhau in a speech in Tokyo called for a global regulatory response to financial uncertainty caused by the crypto market.

"Let me stress that this uncertainty is why we need to regulate strongly and quickly crypto assets internationally," he said. "The last episodes show us that we cannot allow for a second 'crypto winter' to still add to uncertainty and financial instability."

On Monday, officials from the U.S. Federal Reserve and legislature called for crypto finance to come under greater regulatory scrutiny.

https://www.reuters.com/technology/ftx-officials-contact-with-us-regulators-filing-2022-11-15/

Aaaaaannnd here we go! Never let a crisis go to waste...SBF (aka Scumbag ******** Fraudster) was just a trojan horse for TPTB to introduce severe regulation on the ponzi-crypto, so they can churn out some money out of it. Some of the stupid US lawmakers are calling out for the same now, so it's a done deal that they will use the opportunity to "PROTECT THE CUSTOMERS" by enforcing some weird and ad-hoc regulations.

A good (and well paid) liquidator will employ blockchain forensic experts to track all the blockchain transactions. There can be clawbacks, if they want, including from Dems, foreign mediocre comedians etc… if they want…

"...if they want" that's the best part of it.

 

[Martin Everson]

FTX Accounts Drainer Swaps Millions in Stolen Crypto, Becomes 35th-Largest Ether Holder​

https://www.msn.com/en-us/money/com...becomes-35th-largest-ether-holder/ar-AA1484E4

 

[georgio]

What would be the next institution to follow ? (crypto, broker or bank)
Should have a separate thread probably, to post warnings.

 

[369]

 

[JohnnyDoe]

A good (and well paid) liquidator will employ blockchain forensic experts to track all the blockchain transactions. There can be clawbacks, if they want, including from Dems, foreign mediocre comedians etc… if they want…

Kudos to the Bahamas SEC, they have appointed the best: FTX Digital Markets: Brian Simms KC appointed as provisional liquidator | Lennox Paton

 

[snatner]

Well this is starting to hit large ones:
- Genesis trading halted withdrawals

https://www.coindesk.com/business/2...customer-withdrawals-in-wake-of-ftx-collapse/
Also saw some concerning info about Silvergate Bank (bank that works as on and off fiat ramp to many crypto exchanges):

https://twitter.com/x/status/1592420342198591488

 

[troubled soul]

.





This sage is becoming really interesting day by day......

 

[troubled soul]

Interesting article about sam's thought process.....so much to learn
https://www.vox.com/future-perfect/...ffective-altruism-crypto-bahamas-philanthropy

“Some of this decade's greatest heroes will never be known, and some of its most beloved people are basically shams.”.

 

[jjrapy]

Nothing new under the sun