Topic: FTX Drama and Global Empact - page 5. (Read 1376 times)

The most likely consequence and what has happened is loss for those who participate in the exchange, personally I do not have assets on the FTX exchange, but many people have started talking about losing their assets on the exchange. The next question, how should people who are on the exchange have a way to return their assets?

The biggest mistake may also involve each individual, because in fact we have never been forced to use an exchange by anyone, but because we believe too much in a centralized exchange, that we do not have access to control this security individually. Therefore, this issue serves as an important lesson for all of us, that a centralized exchange is not a safe depository of assets, even if the exchange is large and has quite a good reputation.

Actually, don't believe in exchanges because everyone who is involved in the crypto space will definitely use whatever exchange he needs to exchange his assets for other assets because exchanges are the first bridge that everyone must go through. What should not be done here is to keep more assets in the exchange for too long for years so that when there is a problem like what happened with FTX, it is the users of the exchange who are the first victims of the problem.

In such cases, when exchanges go bankrupt or have problems with hacking, most of what happens is that all users' money is not refunded. This has often happened and again the user becomes a victim of this problem. This FTX drama will continue to appear without any solution from related parties. So lessons like this will probably continue to happen in the future and it is possible that there will be other exchanges that will experience similar cases. So keep your funds in a cold wallet, it's much safer than having to deal with risks on the exchange.

I'm sure even though FTX has registered bankruptcy in court, this case will float and of course investors who will lose unclear whether they can still get money or not, but I'm sure not, an important lesson from FTX is don't believe in exchanges because anything can happen.

Prior to this, Binance had planned to acquire FTX between November 10 and 11, but they had to abandon the plan after reviewing their balance sheet since the mess was too big for Binance to handle. But now that I think more about it, do you really believe Binance would want to acquire FTX given that it is a rival in the market? They may have done it on purpose to let them down and gain public attention. If a single tweet could bring down an entire company, it's even possible that they had an insider who informed Binance group of the company's insolvency.

The $2 billion set aside by Binance will be used to assist the projects affected by FTX's exit and the liquidity drain from them while they were trying to hold onto the price of FTX before it crashed, rather than bailing out FTX as originally intended.

But declaring bankruptcy does not excuse management to an investigation.  Of course they will find irregularities during investigation but I hope justice system will be fair on this.  We know there are influential people behind SBF, and it is possible that they will use their power to cover up things or redirect investigation. And the way SBF behave seems relaxed and not worried at all.  He even played victim during the interview on New York Times .


For a regular normal person yes it won't work like that but for SBF with influential backers, probably it will work out for him.


You can take a hint by looking at the political donation he made  .

I am listening to all these interviews with SBF and honestly I can't believe a word of what is coming out of his mouth. He thinks he can say "Oh, I screwed up", and "Oh, Im sorry". He thinks he can get off scott free. Doesn't work like that.

I have no idea why he is still walking around and not arrested. Shows you how corrupt everything is behind his. Especially all those authorities in the Bahamas. Can get away with anything there pretty much as long as you have money it seems. Madoff got arrested immediately.

Indeed this will change everything not only for crypto community but definitely on centralized exchanges as there can be no safe exchange anymore as long as it’s operated online. My fear is that not only for the government but for most of the crypto enthusiasts to lost their interest in crypto because of this unexpected and scandalous event. My hopes are all for the best, and that there is no big event again that will put the crypto community at the losing end.

Every exchange hacks does really make that shocking situation which it is something that you can just bare it out specially if you are really that badly affected because you do lost up your funds.
It is really just on this FTX situation or drama which it does really have its own way or different reasoning or alibi on where those funds go which its not that typical hacking or exit scam incident
but rather particularly talks about using up their investors money into some business which we dont know if its true or not.
But one thing that really been able to prove out that there's no way that funds could be safe on the time that you do make out deposits into these centralized platforms.

Limiting this to FTX alone does not make any difference as the whole crypto space got hit globally and there is no way we can see it recovering back quickly. There were instances where we saw major exchanges like Mt Gox getting drained due to a hack, but what happened with FTX shook everyone's belief in crypto.

That would be actually most viable tactic at this point. That would mean we would hear even more insane and immature things from behind the curtains as everything that makes hims seem incompetent.

Come to think of it, maybe this has been a plan for a long time now. That would explain so much of his statements and reactions. Remember CZ saying that Sam is tweeting like a psychopath? This could have all just been his way of acting like a lunatic.

https://twitter.com/GMA/status/1598296985010073600

SBF talking to the media when he might be facing down the barrel of a grand jury indictment on charges that would confine him to potential years in prison. His lawyers would have advised against it because his statements would be used against him in prosecution. Unless he's aiming to portray himself as utterly incompetent therefore not subject to any criminal liability, there is no benefit to talking to the media.

Amazes me that this person was trusted with billions of funds. If the ignorance route is the legal strategy for SBF, he'll have to convince a lot of people of his utter stupidity and ignorance to have not known that user deposits were being used fraudulently. As if anyone is dumb enough to believe it.

When it comes to the value of their FTT token it is easy to asses its value which is zero, however I would not be surprised if money was hidden and it is stored at several banks around the world, since to me it was obvious SBF knew that this was coming and people like him never really go penniless, and most likely he took steps to hide a great deal of money so he can still be very rich once this whole process is over, while his stockholders and those which invested in his token have to bear all the losses.

I heard that Binance will give funds of about 2 billion to buy FTX assets, if this is true, of course it will make the market can rise again, FTX error hopefully does not happen again, they use consumer money for wasteful things like luxury villas for FTX employees.

It looks like the problems facing the FTX exchange are becoming more and more difficult and lately I've been trying to read a bit of news about the ongoing issues with the FTX exchange where FTX filed for Chapter 11 bankruptcy on November 11th and Bankman-Fried stepped down as CEO. Crypto exchanges are currently under investigation in several jurisdictions. In the US, several authorities, including the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC), are investigating FTX for the mishandling of customer funds. [source].

This indicates that it will be difficult for FTX to get back on its feet after a sudden drama happened to it and it is clear that many people did not expect that this could happen to FTX, whose exchange is already in a large category.

I could see news outlets who are harsh on cryptocurrency going ham now that they have something to feed their people this and the previous issue with TERRA Luna. I would agree with your statement, this is gonna stay with us for a long long while until people disregards of it. Add to this the fact that we are experiencing one of the biggest dumps in bitcoin's history. As for the lessons, I don't think it is that warranted considering how the common investor is a little more smarter than they were 2-5 years ago, although I would like to point out outliers which are those who kept their money on exchanges.

Actually I don't think SBF's filing for chapter 11 is what slammed the nail in FTX's coffin. Filing for chapter 11 should give them ample time to settle issues with their stakeholders, meanwhile ensuring that no one could take a hold of FTX's assets. A lot of companies have filed for chapter 11 from down under and was able to get their pace back and continue operations, but this will be the first for a cryptocurrency company.

I would argue that the main reason why FTX has failed is because they became belligerent and negligent of the backups they need to impose should a situation like this happen. In the cryptocurrency world, there is no such thing as "too big to fail"

A lot of speculation about FTX and Ukraine, now the issue is growing that the FTX case will occur again in other exchanges, making us alert, when FTX plans to finance projects that are almost dead such as Voyager, Celsius and others I am optimistic that FTX will compete and enter the top ranking and entering and enter Can compete with binance, unfortunately this does not happen and now they will end soon.

FTX has officially registered bankruptcy with the court and of course the court is very difficult to assess FTX assets because the value of FTT also continues to decline, if a conventional company files for bankruptcy it will be easy to assess all assets while cryptocurrencies companies are certainly very difficult or even impossible for investors to buy or fund FTX

There's still a chance FTX is back up and running, that's why they filed for chapter 11. According to chapter 11, FTX will have a certain time to settle with partners and customers and during bankruptcy, no one can enforce FTX's assets. If FTX convinces customers or any partners to agree to sponsor or buy back all of FTX's shares, they can return to normal operations. This has happened to traditional companies after filing for bankruptcy, but it has never happened with crypto companies. The possibility of FTX success is very difficult but there is still hope.

After the FTX case made haters more massive in spreading FUDs and it was proven to be able to make the market drop, the effect caused by exchanges is certainly bigger than projects like LUNA, because it will have a broad impact and cause fear for investors.