theflyingexecutive posted:

literal Captain Planet villain

Jabor posted:

I'm pretty sure that (exactly like what's being complained about), Apple wants a 30% cut of any transaction fee that gets charged for facilitating the transaction, but not a cut of the money actually transferred.

Large Testicles posted:

yeah, it's some heinous poo poo and i tried to talk sense into him but he's like "i know it's dumb and i'm not getting paid in crypto at all but it's amazing money and you kids will be well off when i'm dead" and i'm like ok... i do like money... but as you said, it's loving unethical

quote:

Over the summer, BlockFi had its own liquidity crisis, and agreed to a bailout from FTX that included a $400 million line of credit. As of early November, BlockFi had drawn $275 million of that line.
…
BlockFi was watching [FTX’s rapid collapse] with interest. On Tuesday the 8th, it called up FTX and, somewhat hilariously, asked to draw down the last $125 million on its credit line. FTX, unsurprisingly, said no.[3]
…
[3] Actually the declaration says that BlockFi “requested an additional $125 million of borrowings pursuant to the terms of the FTX Loan Agreement, which FTX did not provide.” So it’s not clear if FTX said no, or just howled incoherently into the phone, or didn’t answer the phone at all, or if BlockFi requested the money by email or text message and FTX ignored it, or what. But my assumption is that BlockFi called and said “hey so can we have the last $125 million” and FTX said “buddy read the room.”

quote:

- In 2017 Sam Bankman-Fried (universally referred to as SBF) started up Alameda Research, a hedge fund with a focus on crypto. Alameda does what every hedge fund does: takes money from clients and then buys and sells stuff in order to make big profits for itself and its clients.
- In 2019 SBF founded FTX, a cyptocurrency derivatives exchange. Like all exchanges, it was basically a broker for investors who wanted to buy crypto products. One investor, for example, was Alameda Research. Unlike hedge funds, however, exchanges don't gamble with customer funds; they generally make money by charging set fees for every transaction they enable.
- In 2021 SBF moved both Alameda and FTX to the Bahamas and a few months later stepped down as CEO of Alameda, leaving it in the hands of Sam Trabucco and Caroline Ellison. However, executives from both companies shared a $30 million penthouse suite in Nassau, and SBF was apparently romantically involved with Ellison.
- Sometime around 2021—the date is vague—Alameda began borrowing huge amounts of money from FTX. This was client money that was held by FTX and was not supposed to be used for trading. Alameda's collateral for the loans was a crypto token invented by FTX but not really traded anywhere. It was notionally worth $10 billion but in reality was worth roughly nothing.
- At about the same time, Alameda loaned $4.1 billion to several FTX executives, including about $3 billion to SBF alone. This is the smoking bazooka.
- In addition, Alameda enjoyed special exemptions from FTX's usual trading rules. This allowed it to lose billions of dollars before fessing up to FTX—though it's likely everyone at FTX knew about this anyway but kept quiet because they didn't want to jeopardize the loans they were getting from Alameda.
- In November 2022 Alameda's eventual $10 billion in losses (loans to FTX executives + losses from bad trades) came to light. Since these were essentially losses of FTX client money, FTX clients naturally got worried about whether their money still existed. So they all started asking for withdrawals which FTX was unable to honor.
- On November 11 FTX and Alameda filed for bankruptcy.

Carthag Tuek posted:

e: tokengrab

Boxturret posted:

Sam: Bankman, freed

spankmeister posted:

scam, bankrupt, fraud

Carthag Tuek posted:

e: tokengrab

more falafel please posted:

one billion years bankruptcy court

knox_harrington posted:

Boxturret posted:

divabot posted:

i blame SBF

qirex posted:

I mean if you asked him he'd probably say it was his fault

Trillhouse posted:

he might even give you mens rea.

AlbieQuirky posted:

his mum and dad are both lawyers
this is the most expensive adolescent individuation crisis ever
the dude is the reverse Mansa Musa of “you’re not the boss of me”

divabot posted:

that was obviously done by that thieving bastard who just steals all his material from SA ununcredited

i blame SBF

Boxturret posted:

hey at least the colours match

Trillhouse posted:

https://twitter.com/ZekeFaux/status/1599113958199242752