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james_randolph t1_ivwp4i4 wrote

Customers deposited their money to engage in crypto trading. But it appears that FTX instead took billions of dollars worth of that money and loaned it out to its sister firm, Alameda, to fund those high-risk bets, according to The Wall Street Journal.

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nova9001 t1_ivwr2wg wrote

Bizarre that people would hand billions of assets to some random platform. Its almost like asking to be fked with.

I am not surprised if Binance goes down next. That's another shady company.

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[deleted] t1_ivx52p7 wrote

[deleted]

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badras704 t1_ivx7l5i wrote

These are centralized exchanges.

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aravarth t1_ivxqx40 wrote

centralised in the context of finance and banking means government regulated

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badras704 t1_ivyb43a wrote

Idk who told u that but ima let you just keep thinking it.

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ShiningInTheLight t1_ivxlf4q wrote

yeah, that dude is literally wrong and clearly illiterate on the subject but still got upvotes.

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shadowrun456 t1_ivxk803 wrote

No one ever said that a centralized crypto exchange can't get hacked (or stolen from) even if the coins traded on it are decentralized. Not your keys, not your coins.

Edit: Downvoted for simply stating facts.

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jeffyoulose t1_ivxlljm wrote

The CEO went to MIT! Of course he is to be trusted. If he went to GIT. Grifter's institute then people should doubt.

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fredericksonKorea t1_ivy7eih wrote

Binance just revealed that their funds are safe.

In the form of a dozen high risk crypto assets. LOL

There is no liquidity, no real USD left in the crypto ecosystem. Ape jpegs worth millions of immaterial dollars, coins with imaginary caps, exchanges where the real FIAT has been spent on advertising and parties.

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nova9001 t1_ivyuhe3 wrote

Anyone who doesn't withdraw their assets from crypto platforms deserve to lose it. After Celcius and now FTX, just how much warning do people need?

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theholylancer t1_ivzytax wrote

when i realized that a lot of valuation of crypto is in stablecoins, coins that supposed to peg their value to the dollar or what nots

and that those companies are acting as worse than banks by having less than 1% at times of actual USD holdings vs their claimed number of coins they hold

I knew that it was all bullshit and anyone who holds assets in ANY crypto, be it BTC or a stablecoin or anything like that, is going to be holding the bag when that liquidity issue comes home to roost

BTC can likely survive to not be worth 0, but the ones that relies on those stablecoins or random other coins as the base is just all bullshit.

there is no difference between a pretend stock market or fantasy stock exchange and crypto if you can't convert the crypto into either hard currency, or goods and services that you can use.

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Frontpageorlurk t1_ivxwjoe wrote

They have their name on the side of a sports arena, regulation should of happened yesterday. The US has done a great disservice to its people, this should have never been allowed to happen.

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646bph t1_ivy6mqu wrote

It’s crypto, lack of government regulation was the whole point. People only have themselves to blame if that lack of regulation results in personal financial loss.

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Frontpageorlurk t1_ivy7bfb wrote

Yes, but the average joe dosent understand all that, they see tom brady and larry david shilling it on TV and think it must be safe.

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646bph t1_ivy9zef wrote

Yeah, that’s fair, it definitely got way too main stream.

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etarnkufecin t1_ivyaim8 wrote

Yup, too many people see a celeb and automatically go..."well they must be trust worthy, i'll buy what they sell..or vote foe them." Not thinking that those people do 0 research and are just getting paid to sell stuff. We are a celeb idolizing society.

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coyote-1 t1_iw0xe6n wrote

They deserve their fate if they invested without understanding their investment

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iamnotabot159 t1_ivyu3hy wrote

lol

Not being regulated by governments is the whole point of crypto currencies

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artaru t1_ivywtvy wrote

Regulations FOR me, not AGAINST me.

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nagarz t1_ivxjb7s wrote

I find it funny that the same people who are mostly against crypto regulation, are seeing this dumpster fires and probably expecting the government to save their asses.

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TaxOwlbear t1_ivy5bru wrote

They want no regulation - until someone steals their monkey JPEG receipts, then they want all the regulation.

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MrEHam t1_ivyegdt wrote

Just like how everyone loves a bad guy until they kill your dog.

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kungpowgoat t1_ivxwvod wrote

So embezzlement with a tiny pinch of Ponzi scheme.

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Dblstandard t1_ivyu4pw wrote

Shady fucker.

But it's honestly no different than what bank fractional reserve. If they have a billion dollars of customer assets they only have to keep like 10% on the books. These guys are all shady

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Inner_Spray_6770 t1_ivzue91 wrote

Shit I’d backed by the reserve though

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Dblstandard t1_iw16r1g wrote

Exactly it's the reserve that gives us the true confidence.

But you should still continue to look at most major banks as complete pieces of shit. They're there to fuck you. Unless you're a VIP client, they're there to fully fuck you.

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unbuottawa t1_ivwmmse wrote

This hole FTX keeps trying to fill gets bigger every time I see a new article about it. It was $1 billion, than $4 billion, than $8 billion and now $9.4 Billion. What exactly did they do to make the hole get bigger even if withdrawals are closed?

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nova9001 t1_ivwqzct wrote

>What exactly did they do to make the hole get bigger even if withdrawals are closed?

Leverage to the max and now they owe more than what they have.

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The_ODB_ t1_ivy1447 wrote

They're not a bank or investment business. They weren't supposed to leverage anything.

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nova9001 t1_ivy1p5y wrote

Apparently you don't need to be a bank or investment business to take risk.

Anyway, the money is gone. Losers are people who put money into FTX and winners enjoying their billions somewhere in paradise.

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The_ODB_ t1_ivyyotp wrote

My point is that officially they have never leveraged anything. That's not what an exchange does.

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nova9001 t1_ivyzsr7 wrote

Hence why officially they told everyone they never and then shifted the assets to a sister company.

Funny thing is after the investigations, they might be just walk.

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drawkbox t1_ivwzbty wrote

This is currently 1/6th of a Madoff ($65b), though it continues to increase it seems.

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otisthetowndrunk t1_ivy9233 wrote

Inflation keeps driving up the cost of a villa in countries with no extradition treaties.

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nyaaaa t1_ivzi5qs wrote

The majority of their assets was a token they made, so... since they aren't worth anything, so is their token going down, so is their assets going down, so is the value of their token going down.

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Pontus_Pilates t1_ivx8s0s wrote

Good thing these crypto markets offer people real freedom outside of onerous banking regulations. This truly is the future of finance where the unbanked finally have a voice. And the power to unleash their potential to lose all of their money in a pyramid scheme.

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flyingkiwi46 t1_ivyik2i wrote

Storing your crypto inside a centralized exchange goes against everything crypto stands for...

There is a reason the phrase

"not your keys not your crypto" Is very popular in the crypto community and thats because of the shenanigans centralized exchanges pull

Hopefully in the future people will finally learn not to trust centralized exchanges to hold their cryptos and instead store them in a wallet

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Policeman333 t1_ivyrfai wrote

And then when people do that and hackers get access to their wallet, they’re blamed for not having the best security measures possible. People will make an analogy like “that’s like leaving your money under your bed, of course that’ll happen!”

They’ll be told instead to put it in a secure cold wallet that is never connected to the web.

Then when that device inevitably breaks, is stolen, is destroyed in a fire, someone mistakenly throws it out, or whatever else people will get blamed for not regularly backing up, maybe somewhere on the web, or perhaps letting a central exchange store it for them. And then the cycle of blame repeats.

No matter what you do with crypto, cryptobros will always blame people instead of acknowledging the huge flaws in the system they advocate for.

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flyingkiwi46 t1_ivywhv1 wrote

>And then when people do that and hackers get access to their wallet, they’re blamed for not having the best security measures possible. People will make an analogy like “that’s like leaving your money under your bed, of course that’ll happen!”

  1. buy a cold wallet

  2. write down seed phrase from cold wallet on a piece of paper or stamp it into a metal card/sheet

>They’ll be told instead to put it in a secure cold wallet that is never connected to the web.

You can connect the cold wallet to the web safely just dont sign random smart contracts from questionable sources when you're using the ethereum blockchain

Its the same process you do when you're casually browsing the web

I.e - not download questionable files from questionable sites.

>Then when that device inevitably breaks, is stolen, is destroyed in a fire, someone mistakenly throws it out,

Is doesn't matter if your device get broken/stolen/lost as long as you have access to your seed phrase you will be fine.

you can use your seed phrase on any wallet to gain back access to your crypto it doesn't even have to be a cold wallet

>whatever else people will get blamed for not regularly backing up, maybe somewhere on the web

You should NEVER put your seed phrase anywhere online or even locally on your pc thats the most common way people get "hacked "

>No matter what you do with crypto, cryptobros will always blame people instead of acknowledging the huge flaws in the system they advocate for.

While crypto has its flaws keeping your crypto safe is easy since its literally a 2 step process

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Policeman333 t1_ivyynco wrote

>write down seed phrase from cold wallet on a piece of paper or stamp it into a metal card/sheet

It gets lost, thrown out, your neighbors house catches on fire leading to a housefire in your own house, you forgot where you put it, tornado/hurricane, etc.

How did you gloss over that? No matter how you spin it, its a huge security flaw. If a single point of failure is all it takes for you to lose everything, it's a shit system.

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flyingkiwi46 t1_ivz021a wrote

Thats the responsibility of the user to store the phrase in a safe place tho...

If you can't find a safe place to store your stuff then crypto is the least of your concerns

I mean if you're invested in physical gold I doubt you will "lose" it or store it in the open so why not treat your seed phrase the same way?

As for the fire you can use a stainless steel case if you're that paranoid lol

For reference

https://shop.ledger.com/products/the-billfodl

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Policeman333 t1_ivzqkyj wrote

Alright, now try a hurricane hitting your town. What excuse are you going to come up with now? Just don't live in a place that gets hurricanes? Create a second copy of your catchphrase a million miles away?

Like I said:

>No matter what you do with crypto, cryptobros will always blame people instead of acknowledging the huge flaws in the system they advocate for.

No matter what precautions you take, even in a fire you guys come up with "just use stainless steel". You guys can sit and type out essays about all the problems with fiat and banks, but refuse to even acknowledge the most basic of flaws with crpyto.

>I mean if you're invested in physical gold

Cryptobros and the people who think investing in gold is smart are the same people.

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flyingkiwi46 t1_ivzvqcr wrote

>Alright, now try a hurricane hitting your town. What excuse are you going to come up with now? Just don't live in a place that gets hurricanes? Create a second copy of your catchphrase a million miles away

Yeh..it seems like it doesn't matter what I reply with you will just come up with another imaginary scenario on why its not possible to safely store your crypto so its pointless to argue any further

>No matter what precautions you take, even in a fire you guys come up with "just use stainless steel". You guys can sit and type out essays about all the problems with fiat and banks, but refuse to even acknowledge the most basic of flaws with crpyto.

I already acknowledged that there are flaws in crypto but keeping your crypto safe isn't one of them

>Cryptobros and the people who think investing in gold is smart are the same people.

A well diversified portfolio is a healthy portfolio that means holding cash along with gold/stocks/crypto/bonds & real-estate

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darth_aardvark t1_ivziuya wrote

>I mean if you're invested in physical gold I doubt you will "lose" it or store it in the open so why not treat your seed phrase the same way?

Yeah that's why i'm not fucking invested in physical gold

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makebbq_notwar t1_ivwr3s5 wrote

I forget who called this, SBF & FTX have been trying to buy up all the counter party risk as the market collapsed to outrun their own demise.

They just needed to be the last man standing

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MechaSheeva t1_ivwww8v wrote

Just watched a video about the founder on Snapchat, talking about wanting to donate his $26 billion 🤣

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fireitup622 t1_ivygfav wrote

>Reply

Dude was probably trying to position for some extra shady shit since he would have seen the writing on the wall before all the news broke. "Donate" his fortune to a charity his dad or friend made to avoid bankruptcy and fraud cases taking it

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mongtongbong t1_ivww87f wrote

lets make our own token buy some to set the price and get rich, no inherent value or any such antiquated concepts necessary, don't worry i went to MIT and am suitably scruffy and outre

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Necessary-Mousse8518 t1_ivyis8e wrote

........another one bites the dust. Any bets that Binance is going down in flames next?

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LoveThieves t1_ivxgwqr wrote

“Look” 9 billion, good luck lol

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v1akvark t1_ivxzmuo wrote

Couldn't they ask Elon? I hear he looked to throw away billions.

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_________FU_________ t1_ivy80xa wrote

I’ve spent my entire life saying that I will never do anything to intentionally have anyone want to kill me. This mother fucker just pulled his nuts out and pissed himself.

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manorwomanhuman t1_ivyb3b3 wrote

Every exec at this company is to blame. They are all grifters.

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redshift83 t1_ivytzem wrote

every sketchy activity in the last 4 years of crypto, SBF was very close. dude is a vey charismatic scammer.

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BF1shY t1_ivyvt58 wrote

Didn't they just say they're fine? Lol

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AztecDolphin7 t1_ivz0no2 wrote

dont rescue nothing no government should payout company mistakes if it falls along its customers. Let the market regulate itself.

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Netplorer t1_ivzo5lm wrote

Yes please, give our fraud company more money to steal ! Otherwise you lose your money :D ... ehhmm how about no ?

How are people still fucking around with this crypto fad ?

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ExileInParadise242 t1_ivzqndj wrote

The problem with having too many mathematics grads in your organization is that you inevitably end up with some imaginary numbers.

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