Binance and FTX

[Anonymous]

Has anyone else been following the FTX and Binance drama? The two companies were rivals and the Binance CEO tweeted some negative things about FTX which caused them to go bankrupt. My question is: isn’t this illegal? Did Binance cause a run on a bank, which is illegal? I have no stake I’m just fascinated by this train wreck. Billions of dollars just evaporated.

[Anonymous]

They aren't banks. They are ponzi schemes.

[Anonymous]

Anonymous wrote:Has anyone else been following the FTX and Binance drama? The two companies were rivals and the Binance CEO tweeted some negative things about FTX which caused them to go bankrupt. My question is: isn’t this illegal? Did Binance cause a run on a bank, which is illegal? I have no stake I’m just fascinated by this train wreck. Billions of dollars just evaporated.

It is worse. FTX's partner comapny was using customer assets to fund risky investments. Total Sh&t show.

[Anonymous]

I'm not into the crypto scene and am fascinated to see that much of the drama/manipulation/crimes are related to the platform companies and not the digital currencies themselves.

Illegal? These are not banks and are almost completely unregulated. I don't know what it was take for some to be prosecuted as a crime.

[Anonymous]

Anonymous wrote:I'm not into the crypto scene and am fascinated to see that much of the drama/manipulation/crimes are related to the platform companies and not the digital currencies themselves.

Illegal? These are not banks and are almost completely unregulated. I don't know what it was take for some to be prosecuted as a crime.

The tweet won’t be illegal, but the Almeda and FTX misuse of customer funds likely is.

[Anonymous]

Its essentially wildcat banking

[Anonymous]

Watch tether, that will tell if this is a Madoff or Lehman moment.

https://www.ft.com/content/86ff86f9-a0b1-448f-af11-b8dd9ae8577d

[Anonymous]

I thought Binance was trying to buy FTX due to FTX's problems and desperation to save themselves, then the deal went south, Binance pulling out.

[Anonymous]

Anonymous wrote:I thought Binance was trying to buy FTX due to FTX's problems and desperation to save themselves, then the deal went south, Binance pulling out.

That was the plan until they saw their books. This is going to be ugly. A lot of people going to lose their $.

[Anonymous]

People like this need the death penalty to show that there are serious punishments for white collar crimes. These types of crimes arguably inflict more pain and suffering than a murder does. Open the death penalty to this level of fraud.

[Anonymous]

The chief risk officer was head of risk at a bank previously . You can’t make this stuff up

[Anonymous]

Anonymous wrote:

Anonymous wrote:I thought Binance was trying to buy FTX due to FTX's problems and desperation to save themselves, then the deal went south, Binance pulling out.

That was the plan until they saw their books. This is going to be ugly. A lot of people going to lose their $.

Binance was never going to buy FTX, this was just the last sledgehammer to the knee cap to take them out when they were tottering.

[Anonymous]

Anonymous wrote:I'm not into the crypto scene and am fascinated to see that much of the drama/manipulation/crimes are related to the platform companies and not the digital currencies themselves.

Illegal? These are not banks and are almost completely unregulated. I don't know what it was take for some to be prosecuted as a crime.

Agree, and my work prohibits any ownership of crypto. Bitcoin's proof of work mechanism ensures its integrity. Etherium has shifted to proof of stake to satisfy the climate change crowd but it remains to be seen if that could be manipulated.

Lightly regulated platforms dealing with other people's money were a problem waiting to happen.

FTX was lending customer assets (an exchange should be safekeeping customer assets, not lending them) to a connected company, Alameda (compounding the egregiousness of the lending), that Alameda collateralized with its holdings of tokens FTX itself had issued (ensuring that a drop in the token's value would leave FTX unable financially to give its customers their assets back).

The FTX implosion has nothing to do with the digital assets themselves, but has everything to do with a financial firm that avoided all principles of good governance and risk management.

[Anonymous]

Anonymous wrote:Has anyone else been following the FTX and Binance drama? The two companies were rivals and the Binance CEO tweeted some negative things about FTX which caused them to go bankrupt. My question is: isn’t this illegal? Did Binance cause a run on a bank, which is illegal? I have no stake I’m just fascinated by this train wreck. Billions of dollars just evaporated.

I'd suggest you read beyond one headline. That's absolutely not the cause of what happened and you need to do a lot more reading to understand the full picture.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm not into the crypto scene and am fascinated to see that much of the drama/manipulation/crimes are related to the platform companies and not the digital currencies themselves.

Illegal? These are not banks and are almost completely unregulated. I don't know what it was take for some to be prosecuted as a crime.

Agree, and my work prohibits any ownership of crypto. Bitcoin's proof of work mechanism ensures its integrity. Etherium has shifted to proof of stake to satisfy the climate change crowd but it remains to be seen if that could be manipulated.

Lightly regulated platforms dealing with other people's money were a problem waiting to happen.

FTX was lending customer assets (an exchange should be safekeeping customer assets, not lending them) to a connected company, Alameda (compounding the egregiousness of the lending), that Alameda collateralized with its holdings of tokens FTX itself had issued (ensuring that a drop in the token's value would leave FTX unable financially to give its customers their assets back).

The FTX implosion has nothing to do with the digital assets themselves, but has everything to do with a financial firm that avoided all principles of good governance and risk management.

The claim that the FTX collapse has nothing to do with the digital assets themselves is wrong. FTX Token was a key part of this collapse.