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

Packerjohn said:
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!
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https://untappd.com/b/barrel-brothers-brewing-company-cryo-currency/4635748
 

Warrigal said:
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.
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So would you what ? Rather spend all of your income ? And have no nest-egg , no cushion ? If something expensive should arise ?

False security ? If you suddenly need $1000, $10,000 it's there if you've saved it.
Would you rather try to secure a loan, with no assets ? If you would even be granted said loan , the interest rate would be way up there.

IMO, perhaps you might listen to your Hubby.
 

I didn't say we should spend all of our nest egg but as we need to we shouldn't hesitate. It does no good sitting in the bank where it receives interest that is much less than the inflation rate and it isn't safe when invested in shares.

After decades of saving for our retirement into our superannuation fund we retired thinking we could be self sufficient, living off our accumulated funds. Not long into retirement we were hit by the Global Financial Crisis that almost halved our savings.

As a result, instead of being self funded retirees we are now part pensioners. We have not been silly with our capital but with the war in Ukraine it is possible that we could take another hit at any time. My policy now is to spend on essentials and also on things that make life pleasurable. Tomorrow I am going to the Sydney Opera House to see the ballet Romeo and Juliet. I am taking with me eight female family members. I paid for the tickets early in 2000 and the performance has been postponed twice because of Covid. It will be an expensive day out but the lovely memory of tomorrow will last me for the rest of my life and "my girls", as I call them, will also remember this day and remember me with a smile.

I have recently booked a similar outing in January for "our boys" so that Hubby can have the same pleasure. The menfolk, ten in all, will be watching a performance of "Afrique en Cirque" which is a South African troupe of dancers, drummers and acrobats. This time the party will include Hubby and nine male members of the family. Our son who lives in Albury (south of Sydney on the border with Victoria) is coming to visit and will take care of Hubby for the day.

I consider the money I have outlaid for both events to be well spent. As my mother used to say, "There are no pockets in shrouds".
 
rgp said:
So would you what ? Rather spend all of your income ? And have no nest-egg , no cushion ? If something expensive should arise ?

False security ? If you suddenly need $1000, $10,000 it's there if you've saved it.
Would you rather try to secure a loan, with no assets ? If you would even be granted said loan , the interest rate would be way up there.

IMO, perhaps you might listen to your Hubby.
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Of course, when the people who think money is an illusion or some other form of fakery or evil, find they really need some..... They will lean on the government to take it from those who sacrificed, saved and invested, and give this illusionary nasty money to them.
 
Well, here's an interesting twist....

It seems that a lot of crypto money people entrusted to FTX was turned into ordinary currency like dollars and given to various charities. IOW, the money contributed to the charities was ill-gotten gain, and the rightful owners want their money back.

And more of this alleged stolen money was donated to political candiates!!

there was “no meaningful distinction,” and that SBF then used these “commingled FTX customers’ funds” to make “large political donations.” Put simply, SBF stands accused of using stolen money to fuel politics.
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FTX execs gave an additional $3 million to the Senate Majority PAC, $2.25 million to Women Vote! and more than $1 million to the LGBTQ Victory Fund. There were also donations to the Democratic National Committee, the Democratic House and Senate campaign funds, and state Democratic parties. And that’s only this cycle. SBF in 2020 gave more than $5 million to the elect-Biden effort.

Not that Republicans aren’t also in the hot seat. While SBF’s declared donations are primarily to Democrats, Mr. Salame turned up this cycle as a GOP megadonor.
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The people whose money was stolen want it back. It looks like the politicians and charities that took the money and spent it are going to be in a world of hurt when the rightful owners try to claw-back the money.

Are they having fun yet?
 
Brookswood said:
Of course, when the people who think money is an illusion or some other form of fakery or evil, find they really need some..... They will lean on the government to take it from those who sacrificed, saved and invested, and give this illusionary nasty money to them.
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Exactly !
 
Brookswood said:
Well, here's an interesting twist....

It seems that a lot of crypto money people entrusted to FTX was turned into ordinary currency like dollars and given to various charities. IOW, the money contributed to the charities was ill-gotten gain, and the rightful owners want their money back.
..........

The people whose money was stolen want it back. It looks like the politicians and charities that took the money and spent it are going to be in a world of hurt when the rightful owners try to claw-back the money.
.....
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Clawbacks are exactly where this should go besides criminal court.

I don't even know if they made that much off of crypto because he was comingling client money from his 'regular' investment fund and the crypto fund.

And he was apparently using retail off the shelf accounting software Quickbooks when they made an attempt to keep records so we.might never know how bad, sloppy or corrupt he was.
 
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Here's another mess we can thank FTX for - a big tax headache.

Imagine you made money off of FTX, you paid taxes on the earnings. Now the money is clawed-back so it can be returned to its rightful owners. You had better file an amended return and get you money back from the IRS. It just keeps getting worse.
 
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WhatInThe said:
Clawbacks are exactly where this should go besides criminal court.
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Some politicians who received contributions of the ill gotten money are now claiming they will give it to charity. What charity would be stupid enough to accept a contribution of what is most likely stolen money? IMO, this could get even more messy if the the people who had the money stolen from them trace it to the charity. Now the charity and the politician will both be on the hook for the claw-back. What a mess!
 
Has anybody notice that all those people bragging about crypto and trying to hawk it to overbody else have suddenly gone silent? I mean early this year crypto was praised as being a great store of value, much better than fiat currencies like the dollar or the euro. Now, they are nowhere to be found. Or maybe they have started investing in farmland in Antarctica?
 
Brookswood said:
Has anybody notice that all those people bragging about crypto and trying to hawk it to overbody else have suddenly gone silent? I mean early this year crypto was praised as being a great store of value, much better than fiat currencies like the dollar or the euro. Now, they are nowhere to be found. Or maybe they have started investing in farmland in Antarctica?
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I don't think enough people realize he embezzled, stole or defrauded people out of cash money that was supposed to be invested in crypto. Crypto isn't the issue it's crime and criminals. He pulled cash money from both his crypto and general investment fund that was supposed to be actually invested.
 
Update FTX ceo Sam Fried Bankman SFB out on 250 MILLION dollars bail. His parents had to put up their mansion as collateral. But two unnamed wealthy people also cosigned for bail. Who are the anonymous bail posters and why did they help a notorious criminal suspect.

https://decrypt.co/117814/how-sam-bankman-frieds-250-million-bond-works

Apparently his 'bail' is considered an appearance bond. The type and amount requires 4 people to sign the bail agreement . His parents are 2 of the 4. Who are the other 2?

Some is scared he will talk or Epsteined. As dangerous as jail would be being out in public isn't exactly safe either.

Also his parents are college professors and put up their house/mansion worth millions, on a college professor salary?
 
WhatInThe said:
I don't think enough people realize he embezzled, stole or defrauded people out of cash money that was supposed to be invested in crypto. Crypto isn't the issue it's crime and criminals. He pulled cash money from both his crypto and general investment fund that was supposed to be actually invested.
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You're right. And you make a good point. Fraud and the mis-use of assets are a serious if not criminal issue.

But, it goes beyond the alleged fraud. Earlier this year long before the SFB issue, crypto people were telling us that it is a great store of value in inflationary times. And they put down fiat currencies like the dollar which suffered from inflation. At one point Bitcoin was in the the area of $60,000 . Now it is not quite $17,000. It's down over 70%. That is not a good store of value.

Like I said, the crypto zealots have gone quite.
 
Brookswood said:
... At one point Bitcoin was in the the area of $60,000 . Now it is not quite $17,000. It's down over 70%. That is not a good store of value.
...
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It is on a down cycle but one must wonder if FTX had actually put those billions of dollars in the crypto investments would the market have dropped as bad or quickly.

His crimes unnecessarily affected the market because it's a safe bet there were panic sellers including large holders or investment fund managers that when they saw the initial headlines freaked and dropped/sold their crypto holdings. Panic selling can keep a market going down.
 
WhatInThe said:
It is on a down cycle but one must wonder if FTX had actually put those billions of dollars in the crypto investments would the market have dropped as bad or quickly.

His crimes unnecessarily affected the market because it's a safe bet there were panic sellers including large holders or investment fund managers that when they saw the initial headlines freaked and dropped/sold their crypto holdings. Panic selling can keep a market going down.
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A down cycle? That has to be a very strong competitor for the understatement of the year award.

The market for crypto dropped because there is nothing of substance backing crypto. Not a thing. The dollar is backed by an economy the produces incredible amounts of goods and services that people need, want and are willing to trade for. I offer these opinions as food for thought. Make up your own minds.

Oh, check out a copy of the book Extraordinary Popular Delusions and the Madness of Crowds.
 
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Brookswood said:
Like I said, the crypto zealots have gone quite.
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But, I think they weren't 'zealots', it sounded in the coverage I've watched like a lot of the 'influencers' were getting paid to promote it, so the quiet now is probably mostly because they aren't getting paid now. Though some of them have lost a lot of money themselves.
 
HoneyNut said:
But, I think they weren't 'zealots', it sounded in the coverage I've watched like a lot of the 'influencers' were getting paid to promote it, so the quiet now is probably mostly because they aren't getting paid now. Though some of them have lost a lot of money themselves.
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An excellent point.

From what I read some lawyers, knowing that getting money SBF and associates will be difficult are looking at the people who profited by endorsing crypto. They have some deep pockets which may help.

https://www.cnn.com/2022/12/14/tech/celebrity-crypto-lawsuits/index.html

Make of this what you will. I am not a lawyer and have not played on TV.

Tom Brady, Gisele Bundchen and others were sued in November by an FTX investor for their endorsement of the now-disgraced crypto platform, and then Brady and Ortiz were named again in early December in a similar lawsuit for their backing of FTX.
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Brookswood said:
A down cycle? That has to be a very strong competitor for the understatement of the year award.

The market for crypto dropped because there is nothing of substance backing crypto. Not a thing. The dollar is backed by an economy the produces incredible amounts of goods and services that people need, want and are willing to trade for. I offer these opinions as food for thought. Make up your own minds.

Oh, check out a copy of the book Extraordinary Popular Delusions and the Madness of Crowds.
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The 'backing' of crypto is supposed to be the limit on the number of coins in circulation/on the net. Since it has been/is accepted as payment for some goods or services it has value. It's niche and not in mass acceptance. But some big companies accept it.

https://www.yahoo.com/video/15-major-companies-accept-bitcoin-155558584.html

It's bartering/not the typical transaction but is part of the economy.

Scammers like FTX/SFB dimished the value of it. But bad news can also affect the stock of a company. A jet crashes, a medication kills an airline or drug company will probably experience a drop.
 
I didn't buy any crypto because I don't have a clue who the guys were that invented it or why they did or who the big players are like SFB. Just look at the pictures of him doing the perp walk on yesterdays news. Would you trust that guy? Granted we have some unsavory crooks in all departments of government. But they have names and do have some checks and balances. Why do we need another form of currency, anyway? My US dollars still work and can be traded for any other world currency when and if I need to.
 
Crypto. Backed by the full faith and credit of some Yayhoo on the internet. What could go wrong?
 
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