Crypto Currency Fund 'loses' one BILLION dollars in client funds. Goes Bankrupt. CEO Flees To Bahamas

Try as I might, I cannot understand crypto currency. It's not that I don't have an interest in it. I do have a basic curiosity, but I just don't get it. It sounds to me like a lot of people lost a lot of fake money that they probably bought with real money.
 

JustDave said:
Try as I might, I cannot understand crypto currency. It's not that I don't have an interest in it. I do have a basic curiosity, but I just don't get it. It sounds to me like a lot of people lost a lot of fake money that they probably bought with real money.
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Bitcoin or a country's money is supposed to be or should be based on something. That's why some issue currency based on the nation's gold supply. Over simplified but crypto bases their currency on bits of digital information distributed over a network of computers. Problem so many have made up their own currency it gets confusing. It's not the form of currency it's those in charge or how they invest it.

A crypto fund failed not the currency. The person in charge is a criminal/thief.
 
WhatInThe said:
Reports he used up to one BILLION dollars in FTX customer for trading in another investment fund he created. So not only did his crypto fund have issues apparently his other fund did too if he has to use outside funds.

https://www.cnbc.com/2022/11/13/sam...-without-raising-alarm-bells-say-sources.html

2 funds/cons at once. He was a busy boy.
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It's a testament to the effectiveness of Adderall, his drug of choice.
 

JimBob1952 said:
It's a testament to the effectiveness of Adderall, his drug of choice.
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They say stimulants like cocaine were/are a Wall Street staple. And yes he is of that age he might very well be doing addreall( of which there is a shortage now so money apparently does buy happiness no matter)
 
WhatInThe said:
They say stimulants like cocaine were/are a Wall Street staple. And yes he is of that age he might very well be doing addreall( of which there is a shortage now so money apparently does buy happiness no matter)
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Drugs, ranging from Adderall to cocaine to something called EmpSam, are all over this story.
 
WhatInThe said:
Bitcoin or a country's money is supposed to be or should be based on something. That's why some issue currency based on the nation's gold supply. Over simplified but crypto bases their currency on bits of digital information distributed over a network of computers. Problem so many have made up their own currency it gets confusing. It's not the form of currency it's those in charge or how they invest it.

A crypto fund failed not the currency. The person in charge is a criminal/thief.
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I've always thought money should be based on something, and like crypto currency, I don't understand the US dollar, either. I know I can exchange dollars for goods, but I don't really understand what makes printed money worth anything. I guess it's based on a non-tangible concept, but I don't find that satisfying. If crypto is based on bit's of digital information, that is also a non-tangible. I'm amazed that modern economics works at all. It seems like slight-of- hand. Greed and survival is centered around accumulating printed documents no more tangible than an I Owe You.

I've played hundreds of games of Monopoly, but never finished one game ever. Eventually, everyone got bored and we just quit. Somehow, that seems relevant here, but it's probably not, and I have no idea why I think it should be.
 
911 said:
And look at every major league umpire who wore the FTX label on their uniforms this season, which tells me that MLB also cashed in on this young man’s fake scheme. He was actually acting like a mini Madoff trader.

Although Madoff was a complete schemer and con artist, I had to hand it to him. He fooled the best and smartest financiers and investment bankers in the business, although a few did find his ability to make money during the crash as suspicious and even insinuated that Bernie wasn’t playing it straight up.
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Hey...good to "see" you 911. As I was reading the replies (before I got to yours) I was thinking he should serve lots of prison time, like Madoff. Because that's exactly what this reminds me of. Besides it being a foreign based company, it is fairly new IMO and those two things alone would have been a deal breaker for me.
 
OneEyedDiva said:
Hey...good to "see" you 911. As I was reading the replies (before I got to yours) I was thinking he should serve lots of prison time, like Madoff. Because that's exactly what this reminds me of. Besides it being a foreign based company, it is fairly new IMO and those two things alone would have been a deal breaker for me.
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I said it when Madoff was the headline ... and I'll say it again. I really don't feel all that sorry for those caught up in it, simply because greed is what cause them to jump on the band wagon.

Think about it, poor people , or people living on the edge do not have any money to invest ... Those that do just want more & more, and do not take the time to stop & think .

What was Madoff promising ? 12-18% return ... in I believe one year .. at a time when mainstream 1.5 return was unheard of.
 
Nathan said:
@911, I'm very picky about what is presented as the truth. It is a pet peeve of mine when misinformation and distortions are put out in public to daze and confuse. Your FTX link points to Axios.com, which I am evaluating to determine credibility. So far Axios seems to be legitimate, with no signs of bias.
Just to clear though, my comment that you quoted had nothing to do with any news content about Sam Bankman Fried, but rather the interjection of a political aspect, mentioned in post #4.
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Nathan said:
@911, I'm very picky about what is presented as the truth. It is a pet peeve of mine when misinformation and distortions are put out in public to daze and confuse. Your FTX link points to Axios.com, which I am evaluating to determine credibility. So far Axios seems to be legitimate, with no signs of bias.
Just to clear though, my comment that you quoted had nothing to do with any news content about Sam Bankman Fried, but rather the interjection of a political aspect, mentioned in post #4.
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I think you take things mentioned about politics personal. I’m not going to lecture you, but why would it matter, if someone interjected the truth? Aren’t we all entitled to learn what’s going on? If it’s disinformation, why care? Sometimes we have to let what people say roll off our backs.
 
911 said:
I think you take things mentioned about politics personal. I’m not going to lecture you, but why would it matter, if someone interjected the truth? Aren’t we all entitled to learn what’s going on? If it’s disinformation, why care? Sometimes we have to let what people say roll off our backs.
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Thanks for not lecturing, and expressing your belief about my personal matters. The truth is always welcome, but I think you're sophisticated enough to know that. I applaud your effort to support your colleague JimBob1952 in his attempt to interject politics in a non-political thread....or am I wrong about that? I thought the OP was about crypto-currency, maybe in the minds of some this thread is about some political aspect...?
BTW, just so you know: there's nothing ever been said on this forum that doesn't roll off my back. ;)

EDIT:
If it’s disinformation, why care?
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@911 , Why care? Maybe it's just a character flaw of mine, but I do care very much. You're a former LE, isn't/ wasn't the truth important to you?
 
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Most likely the legal folks will have a job for many, many months figuring this mess out. . Thankfully, I never invested a penny in Crypto of an sort with any Crypto company.
 
Nathan said:
Thanks for not lecturing, and expressing your belief about my personal matters. The truth is always welcome, but I think you're sophisticated enough to know that. I applaud your effort to support your colleague JimBob1952 in his attempt to interject politics in a non-political thread....or am I wrong about that? I thought the OP was about crypto-currency, maybe in the minds of some this thread is about some political aspect...?
BTW, just so you know: there's nothing ever been said on this forum that doesn't roll off my back. ;)

EDIT:

@911 , Why care? Maybe it's just a character flaw of mine, but I do care very much. You're a former LE, isn't/ wasn't the truth important to you?
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I’ve never been involved in politics. Many of these politicians have committed crimes and should be serving time. When that starts to happen, then maybe I can begin to care. Of course the comeback is “How do you know?” My answer is “Are you kidding me?” You can’t possibly believe that our politicians are all squeaky clean. I have read some of your posts. I know you’re not daft. Politics is one thing I can’t argue because I never really concerned myself with these people. I vote for who I believe to be the better person. I belong to no party or would I ever.
 
The CEO/Sam Brinkman Fried finally arrested. One day before he was supposed to testify before congress. HIs right to remain silent has been kept for him. His lawyers must have been going nuts with some of interviews let alone testimony before congress.

https://www.cnbc.com/2022/12/12/ftx-founder-sam-bankman-fried-arrested-in-the-bahamas-after-us-files-criminal-charges.html

Just this afternoon he has also been formally charged by the US government.

https://www.kcra.com/article/former-ftx-ceo-sam-bankman-fried-charged-crypto/42227143
 
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David777 said:
Brings a smile 😊 to this peon's face reading about financial pain happening to money grubbers in our overly materialistic society.
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IMO all money is an illusion. It only has value when it is spent on something tangible. Having money sitting idle in some fund or account is false security. I cannot convince Hubby of this concept.
 
Paladin1950 said:
I could never understand the logic of crypto currency. I want something that I can see and hold in my hands. I feel safer having my money in a bank. After all Billy the Kid and Jesse James, don't rob banks anymore.
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Very true. Now the would be robbers just scam people into giving up their bank details and passwords so that the accounts can be emptied digitally.
 
Part of the issue with FTX and other 'collapses' is once word gets out that a fund/investor is a fraud many race to get their money causing a run on their bank with demand he simply could not meet. An investor here or there he probably could've handled. But all or a large number at once no way.
 
They are a bunch of greedy fools and deserve what they got. It is common sense to put your money in the bank but no, these folks want to make a 100% or 300% profit in a short time.

I'm not banker but I know a fool and his money are quickly parted.
I also know that if the deal seems too good to be true, it is!
Remember Gamblers; "there is a sucker born every minute."

Sorry for the Preaching but I am no fan of cryo currencies. Too many rip-off to suit me!
 
Why do so many people hate Sam Bankman Fried? He's an entrepreneur and innovator who has given millions to noble charities.

(Just kidding. :ROFLMAO: )
 
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