Crypto exchange FTX lent billions of dollars worth of client funds to fund risky bets at its affiliate trading firm Alameda Research, setting the stage for the exchange’s implosion, a person familiar with the matter said.
FTX CEO Sam Bankman-Fried told an investor this week that Alameda owes FTX about $10 billion, the person said. FTX made loans to Alameda using money customers deposited on the exchange for trading purposes, a decision the person said Mr Bankman-Fried called poor judgement.
All told, FTX had $16 billion in client assets, according to the person, allowing FTX to lend more than half of its client funds to its sister company, Alameda.
More:
Tether stablecoin loses its dollar peg as contagion from FTX’s collapse spreads through the crypto market.
@PeterSchiff If it turns out that @SBF_FTX embezzled money from #FTX to buy stakes in $HOOD or @Scaramucci’s Skybridge, those transactions will need to be unwound to clawback money to repay creditors. Maybe the #Democrats will have to return his campaign donations. This could be a huge mess.
Zerohedge: Expect Crypto Armageddon To Continue
Evening Update: @MikeBurgersburg 🚨🚨🚨BLOCKFI BITES THE DUST. GET YOUR $$$ OFF ALL CENTRALIZED PLATFORMS NOW.
Crypto:
Fantasy Funds for Fools…
One of the areas of finance I have real trouble understanding. Better start educating myself.
Easy to understand….
Stay away.
Stay far away.
Constance Wang seems to understand risk … look what she’s done for Credit Suisse, lol…
9% bonds at Credit Suisse, more lol…
https://twitter.com/PauloMacro/status/1590521703834451968
and…
https://everipedia.org/wiki/lang_en/constance-wang-zhe
How much worse off would this be if the gov’t was in charge of crypto? You’d all be paying, just like when GM became “Government Motors” in 2008
At least this way, it’s simply an exchange’s malfeasance, and the poor judgement call of those who’ve left their money to sit in this exchange’s accounts for months/years.
Having it in a “cold wallet” would have prevented all of this.
Same as not storing your precious gold in a bank safety deposit box, in case the gov’t decides they need your gold, or you’ve shown support for a trucker convoy, or perhaps you’ve tried to cross a border without valid vax papers.
I think it’d be hilarious and sweet if the Democrats this exchange donated to had to repay their ill-gotten gains to those who have lost $ billions…
If an “investment” references crypto or derivative-walk away. There is a high likelihood it is a ponzi scheme channeling money to socialists in this case the democrats.
Have to admit I do like the idea of “genius” investors like NBA, NFL players and Kardashians losing big money is amusing.
Crypto is a euphemism for Greed.
Yup , the modern day version of The Dutch Tulip craze.
Let me see if I got this straight, (and please correct me if I’m wrong)…
the CEO of FTX stole over $10 BILLION DOLLARS from his clients…
he donated an unknown amount of it to Democrats running for office…
and then pocketed the rest?
Holy Crap! – That’s brilliant!!
Why didn’t I think of that?!
Not only will he get away with it, he’ll never spend a minute in jail!
And who said “Crime doesn’t pay”?
How much did Joe Biden and his family get? And where is it hidden?
Investing in a mortgage in tier 2 Old Canada, knowing the depth of malfeasance inherent in the #Libranos Gov’t of Canada…
Probably not an entirely safe investment. Next year, with higher interest rates… what will Canadians invest in?
Gold and silver? Where exactly will they store this “store of value” after their house is a memory from months prior?
Example:
https://twitter.com/SteveSaretsky/status/1590789950337089536
Inflation in Canada will still be present in 2023, and the gov’t will still be spending what it doesn’t have, contributing to more inflation with the demand of additional migrants who are barely at the “knows how to operate a push broom level”
The gov’t of Canada is now saying people will lose their jobs over this, and we need to lower expectations,
while everyone remembers that the “average Canadian” from a couple of years past was $200 a month away from not being able to pay their bills. Since then, the #Libranos carbon taxes have stolen ever rising percentages from us, and energy costs are through the roof.
With crypto funds in a cold wallet, (NOT a centralised trading platform) you can go anywhere on the planet that a tier 2 Canadian passport will be welcomed still, without a suitcase of gold that you’ll never get past airport security.
Canada is going to be a gong show of incompetence in 2023.
Mandate talk and face masks in Ontario are creeping into the news again
The bond market is set to be on fire in the USA in 2023.
Remember when investors thought the bond market was a sure thing, somewhere secure to park your funds?
lol…
The BEST analyst weighs in on “StableCoins” (which reminds me, I’ve shoveled stables. I should remember that effort every now and then.)
“Inside the Vault
#28: Re-examining Stablecoins.
It’s been a wild week.
Last Wednesday, Coindesk published a report on the makeup of Alameda Research’s assets. Six days later, FTX and Alameda collapsed in the most public and dramatic crypto blowup yet. Last week SBF was a billionaire, this week he is $10 billion in the hole, and under criminal investigation. Life comes at you fast.
Many are now trying to explain in hindsight how the face of crypto fell so fast. But TLBS readers got a sneak preview days before the collapse in last Friday’s timely post, A Billion Bananas ( https://thelastbearstanding.substack.com/p/a-billion-bananas ) . ”
https://thelastbearstanding.substack.com/p/inside-the-vault
Now that Bonnie and Clyde have been suborned by the establishment, nothing is off the table.
Canadians are like Mussolini: “All within the state, nothing without.” Look at how they scream about e-bikes, demanding even a half-horse per person be regulated, for the children no less. Well, now your children get to be slaves, just like you freaking cowards like it.