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But Seriously...

Discussion in 'Permanent Threads' started by Juice, Jun 19, 2015.

  1. GTE

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    So if you didn't purchase any crypto through FTX, it doesn't affect you?
     
  2. dixiebandit69

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    Please, PLEASE, PLEASE let this be true. Poland already warned Russia that any sort of stray fire wouldn't be tolerated.

    Maybe now Russia will get the brutal beatdown that they so desperately deserve.
     
  3. Aetius

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    Early reports of the Polish response:

    [​IMG]
     
  4. Juice

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    Not directly, unless the confidence level in other exchanges starts plummeting. BlockFi has already blocked customer withdrawals.
     
  5. Aetius

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  6. Nettdata

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    One of my business associates is working with regulators to unfuck the FTX situation, and he warns that it's just the beginning... Binance and Coinbase do the same fractional banking, and are susceptible to the same problem.

    It gets even worse.

    It's being found out that in order to pass various collateral tests/audits, the big exchanges share around the same crypto. They transfer in the $500m, pass the audit, transfer it back, or on to someone else for their audit.

    It's a huge house of cards that is probably going to tumble here pretty fast, especially since word is fast getting around that "not your keys, not your crypto", and a ton of players are pulling their crypto.
     
  7. Nettdata

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    Shit's going to get ugly, yo.
     
  8. Juice

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    Holy. Shit.
     
  9. Nettdata

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  10. Juice

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  11. Aetius

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    There's something amusing about watching self-appointed Tech messiahs boldly chart a course into what they think is the 21st century, but in actuality is the 19th. Just an endless loop of reinventing the train, sharecropping, and now banking regulations.
     
  12. Nettdata

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  13. Juice

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    This kind of fuckery is more/less what sank Enron, and took Arthur Andersen with it due to their complicity.
     
  14. downndirty

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    I think the collapse of bitcoin in particular would be kind of an environmental disaster. Think about the farms set up, burning significant energy to just have that value evaporate. Fuck.
     
  15. Nettdata

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  16. Juice

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    Holy Hell lol. So let me get this straight:

    1) The customers that use FTX are buying bogus coins?

    2) The customers are not directly attached to the register with their name/wallet and have no access to their own coins?

    3) The exchange was using coins as investment capital in a hedge fund?

    This may end cryptocurrencies altogether, at least in its current form.
     
  17. Nettdata

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    Correct... they were only booking the coins in their internal ledger, not actually purchasing them. They then transferred $10b of users cash to their hedge fund.

    The dude is so fucked, it's not even funny. Hell, a WHOLE lot of those guys are fucked, as it was not just one head guy doing all of this.

    That "hacking" from a couple days ago was probably a few whales telling them in no uncertain terms that they better get their cash back out, and now, or else people's families would be tortured to death. Or, some people in line to go to jail seeing it as their one way out. Scoop $650m of crypto out under the noses of bankruptcy trustees and go somewhere where they can't be found.
     
  18. Nettdata

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    The really interesting part of this is how many hedge funds had so much capital in FTX, that they are now going tits up.

    This is going to have some very interesting repercussions over the next little while.

    I would not be surprised if these guys are set up to take the fall for a bunch of stock exchange bullshit that will come to light.

    Never mind Citadel is out there saying "we need more regulation so this doesn't happen again... here, use our new crypto exchange that we're about to light up".
     
  19. Juice

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    I haven’t even heard of bank engaging in this level of abject fraud. I would definitely be more concerned about getting clapped by a hit man than the SEC boot on their neck if I were them. Especially since their client list could become public record in the bankruptcy filing.

    Crypto was always going to decline now that there’s general capital shortages globally, but this definitely accelerated it.
     
  20. Nettdata

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    More and more exchanges are now blocking withdrawals to try and stop the run on their books.