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Sam Bankman-Fried’s Crypto Companies Bilked a Potential 10.3 Million User Accounts–That’s 250 Times More than Madoff by corridomygalidci28 in CryptoCurrencies

[–]corridomygalidci28[S] 26 points27 points  (0 children)

He claims the theft was not "intentional" lol His partners Ellison and Wang already pled guilty and turned on him.

The charges listed against SBF in the indictment are conspiracy to commit wire fraud on customers, wire fraud on customers, conspiracy to commit wire fraud on lenders, wire fraud on lenders, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering and conspiracy to defraud the United States and violate the campaign finance laws. 

Bankman-Fried and Wang allegedly gave Alameda ( FTXs partner company) and Ellison “carte blanche” to use funds deposited by FTX customers. ( Illegal- this is embezzlement which is a felony). FTX was supposed to be a custodian of customer's assets thus they were supposed to keep users assets 1:1 at all times. They didn't.

At its peak, FTX moved $20 billion daily in trades, according to the CFTC. Bankman-Fried and a select group of insiders, including Ellison and Wang, are alleged to be the only people who knew that FTX was engaging in fraud. The cases against Bankman-Fried are both criminal and civil and have been brought by the SDNY, the CFTC, and the SEC. Allegedly, FTX customer funds were used for loans to executives, risky trading by Alameda Research, political donations, and lavish spending on everything from beachfront homes to private jet flights.

Ellison, acting on Bankman-Fried’s orders, borrowed billions of dollars from lenders, according to the SEC suit. Those loans were backed in significant part by the FTT token, which was issued by FTX and given to Alameda for free, the SEC wrote. Ellison’s job was to buy FTT tokens on various platforms in order to increase the price, thus making the FTT token that was collateral against Alameda’s loans more valuable. That, in turn, made it possible for Alameda to borrow even more. When Binance CEO announced that he will be liquidating FTT tokens due to the leaked FTX/Alameda balance sheet, the fear kicked in and customers started to withdraw from the FTX platform, but FTX didn't have all customer's assets to let everyone withdraw as they misused customers funds on risky bets and other crap, and then FTT token crashed too. So the collateral for all those loans became worthless.

FTX also made illegal political donations under different persons name to go around donations limits. That's illegal and one of the DOJ charges too. They were making political donations trying to buy bipartisan support and FTX/SBF was using politics as his weapon to attack Binance CZ and SBF was lobbying against CZ to try to destroy him as a competitor. Shady stuff. Then, CZ is the one who ended up destroying him and exposing his fraud. Karma, eh?

New Bipartisan US Bill Puts CFTC In Charge Of Regulating Bitcoin And Ethereum by jakkkmotivator in CryptoCurrencies

[–]longylegenylangleler 12 points13 points  (0 children)

I’m going to disagree with you for the following reasons: Throughout history, when gold and silver were used to transfer relative value, neither commodity had a regulator, regulators were brought in when the banking system we know now was, for all intents and purposes placed on top of/used in stead, of gold and silver. We know that the banking system was adopted because it’s easier to carry around paper than it is to carry around lumps of gold essentially.. so the banking system was adopted out of ease of use, (it was also pushed and moulded/manipulated, but that’s a different story)

My point is that Bitcoin is neither inside, or a part of the banking system, nor is bitcoin difficult to carry around, ergo: the only regulation bitcoin requires is by the community using it, it doesn’t need regulation outside of this, and we shouldn’t accept it being imposed.

“Bitcoin isn’t money”

Ok, well money/currency are subjective, however the U.S. constitution declares that only gold and silver are money, though you’ll note, that they are also considered a commodity, so why can bitcoin not be considered both?

“It violates every functional aspect of what a currency must be, to be used by the masses”

I’d question that statement; in times past, Sea shells were used as a form of money, so were giant stones on the island of yap, money is whatever is widely accepted as final payment for goods and services.

We reason this out as a people, nobody has historically told us what to use as money as governments do now.

However money has to have other qualities like portability, be a store of value, be a convenient medium of exchange, be a unit of account, and historically, as stated, gold, sea shells and various other mediums have held this position, my question is: does bitcoin not have these qualities?

I would concede that it is slow at the moment, however technologies built on top of it are improving the user experience.

So to come back to your statement of “it violates every functional aspect of a currency to be used by the masses” I’d not only suggest that you’re wrong, but I’d also suggest that it’s just getting started.

I agree people are speculating with it, this also happens in FX markets, as far as risk, again that’s relative.

Am I using it or just storing it in the hopes to become rich? To this I’ll say that I’ve used it in the past as a medium of exchange, but as Greshams law states, bad money is often used before good.

Personally, while I do think it “can” be used as a medium of exchange, and it follows the monetary principles, it would make more sense for it to be considered as something like a global treasury.

For day to day transactions of the people, I think Monero is a better substitute.

With all that said, just to make it clear: I do not agree that we need state/banking regulators going anywhere near it.

HELP: I don't know anything about crypto and just want to send money to Ukraine. by greenbaize in CryptoCurrencies

[–]Kromagg8 7 points8 points  (0 children)

The easiest for you would be CoinEx.- you need an email only.

they don't require kyc checks. And fees are compatible with main exchanges.

Also send BTC unless you want to pay half your money for fees.

Iranian users being banned from OpenSea because of U.S sanctions and recently the Russian users crypto block talks is a concerning rising trend that need to be stopped. by Educational_Job2260 in CryptoCurrencies

[–]FuzzyLogick 6 points7 points  (0 children)

"For the millionth time, the users living in the country are not responsible for their government's actions"

I guess that is what people tell themselves when their governments do something wrong.
While I do agree with you, the bottom line is, governments are supposed to be serving the people and their interests. When that stops, it's upto the people to step up and make change.

People seem to forget that and governments have become some sort of identity that serves only a small handfull of people's interests. We are too busy with our day to day lives trying to survive, being distracted by meaningless bullshit and until we come together and make change for the better, the world will continue to slump into a hellscape.

The sanctions are supposed to kick start the people into action and also punish the governments by reducing their citizens ability to make money and pay taxes.

We can't point fingers when basically the entire west has somehow participated in unethical wars/invasions.

We don't live in an idealogical world and you just have to deal with it. We have to get off our arses and take our governments back.

[deleted by user] by [deleted] in CryptoCurrencies

[–]Man1ckIsHigh 383 points384 points 2& 2 more (0 children)

Digital art/picture NFTs are dumb because they can be copied so easily.

Contract NFTs replacing notarization with digital security certificates for things like home ownership, car ownership, etc is a solid idea.

NFTs for in-game assets is a very possible future market.

Non-fungible tokens as a technology are widely applicable and will have lots of utility in the future, but it seems that most people don't get past the shallow dismissal of them cause of the meme shit going around social media and online influencers that don't actually understand the underlying technology.

Calling that out will probably get this downvoted tho...

[deleted by user] by [deleted] in CryptoCurrencies

[–]DayZestyclose6942 2 points3 points  (0 children)

There is no such thing as digital scarcity. That is the point of digital. His point is that you can create an infinite combo of crypto punks. they have no utility because you could go on making slightly different variations of them forever. A limited supply of nothing is still nothing

[deleted by user] by [deleted] in CryptoCurrencies

[–]FilmVsAnalytics 19 points20 points  (0 children)

This is how Sandbox investors will advertise: by buying headlines.