14 November 2022

More on the FTX Fiasco

Calling it a fraud seems like inviting a defamation suit, so I won't call it that. I'll leave those judgements to Pixy Misa. Ambient Irony: Daily News Stuff 13 November 2022: Ponzi Is As Ponzi Does Edition.

As it is really Sunday's Tech-News roundup, it is mostly a collection of links. I won't quote everything - though I am tempted.

One link is from Coin Desk, a journalistic "leader" in all things related to cryptocurrency. Though they phrased things differently than Pixy Misa does...

Collapsed $32 billion Ponzi scheme FTX has totally been hacked and all the remaining money was stolen too bad so sad guess there's nothing left for the bankruptcy court. (CoinDesk)

Next we have a bit fro Reuters.

Between $1 billion and $2 billion of customer funds are "missing". (Reuters)

If you're not sure to within the nearest billion how much money you've stolen, you might be a problem.

There is more, like a link to an article at The Atlantic that I could quote at length. If you are interested in it, it is there; click thru.

And from a separate source we get, from 6 months ago, that time the CEO of FTX described a Ponzi scheme, when he was trying not to describe a Ponzi scheme and still talk about the business of FTX.

This video, from about 6 months ago, from Coffeezilla details Crypto CEO Accidentally Describes Ponzi Scheme. (The video is 8 minutes.)

His one job in situations like this, talking to non-crypto people is to reassure them, "This isn't a Ponzi scheme, guys."

2 comments:

  1. Not too surprising as FTX was incorporated in the Bahamas. But yeah, they will be heading out soon enough

    ReplyDelete
  2. The thing that is really interesting is how quickly after all of this came to light the app/website was "hacked" and $600 million or so disappeared. I'm cynical by nature, so it occurs to me that someone running a Ponzi scheme would know that eventually the truth will come out, and so they might have a safety valve to get the last bit of real funds out before they head for the exits.

    ReplyDelete

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