So he made a pseudo crypto? Did he try to sell it as real crypto? I understand the basics of his Ponzi set up and his money laundering, those are as old as time, but I’m not getting what people thought they were investing in when they handed him cash?
He made a 'shitcoin' to facilitate trades on his exchange (similar to the BNB token on Binance). Then he paid people in said shitcoin.
Many people were legit crypto traders that simply had balances on FTX during the collapse. (Remember FTX was given legitimacy by regulators) This is why we say (over and over) NOT YOUR KEYS, NOT YOUR COINS! Other people were in on the scam and were the ones who actually got the money before the curtain was pulled back. Don't let the badly written articles fool you. The wealth did not 'evaporate', it was stolen.
Oh so he never gave investors the keys to the coins, just some sort of self-generated receipt (read iou)? He held the keys to the actual coins backing up the IOU? Which, didn’t exist, of course. That’s so Bernie and his 1,000 year old PCs from the 80’s in some back room that only he was allowed to see. And of course SBF got regulatory legitimacy. With pedigree like his, who would deny him? Thanks for taking the time to explain. I sincerely appreciate it. Love your work.
well you know, so many people went to jail for 2008, how could you expect any less?
If you realized in 2008 like many did that the entire system is a scam, every industry in this damn country, then 2020 wasn't much of a surprise to you.
So he made a pseudo crypto? Did he try to sell it as real crypto? I understand the basics of his Ponzi set up and his money laundering, those are as old as time, but I’m not getting what people thought they were investing in when they handed him cash?
He made a 'shitcoin' to facilitate trades on his exchange (similar to the BNB token on Binance). Then he paid people in said shitcoin.
Many people were legit crypto traders that simply had balances on FTX during the collapse. (Remember FTX was given legitimacy by regulators) This is why we say (over and over) NOT YOUR KEYS, NOT YOUR COINS! Other people were in on the scam and were the ones who actually got the money before the curtain was pulled back. Don't let the badly written articles fool you. The wealth did not 'evaporate', it was stolen.
Oh so he never gave investors the keys to the coins, just some sort of self-generated receipt (read iou)? He held the keys to the actual coins backing up the IOU? Which, didn’t exist, of course. That’s so Bernie and his 1,000 year old PCs from the 80’s in some back room that only he was allowed to see. And of course SBF got regulatory legitimacy. With pedigree like his, who would deny him? Thanks for taking the time to explain. I sincerely appreciate it. Love your work.
With bonus backdoors that allowed him to move money without alerting auditors.
From what I've read, on the last day of 'solvency', FTX had $900M in 'liquid' assets backstopping $9B.
https://finance.yahoo.com/news/ftx-held-just-900-million-105931146.html
But yes, the big story of the day is that the 'regulators' were in bed with the scam -- tale as old as time!
well you know, so many people went to jail for 2008, how could you expect any less?
If you realized in 2008 like many did that the entire system is a scam, every industry in this damn country, then 2020 wasn't much of a surprise to you.
"I'm already against the next bailout."
I was against the first one...in the day.