SEC classified FTT token as a security

zasad@

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Quote from: o48o on December 24, 2022, 08:05:42 AM

Quote from: poodle63 on December 23, 2022, 07:12:33 PM

The government was also greedy bastard. This scammer was able to did 250 millions bail bound which has become a very big question for us https://cointelegraph.com/news/crypto-twitter-confused-by-sbf-s-250m-bail-and-a-return-to-luxury
FTT can be considered as a scam investment product offered to the investor. Poor investors will never get their money. They have lost it forever. They shall aware their money being used to secure bail for SBF.
I don't know why this guy didn't even get arrested. that's shitty thing in the politic.

How is the government greedy here? You know they have to pay the bail money back to SBHs parents, or whomever paid the bail. Right?

However it's understandable that they set a high enough bail to prevent fleeing to Russia or where ever there's no extrsction contract with usa

I have not heard of the scammers from the US and Europe who fled to Russia. There are a lot of hunters for such people in Russia.
In Russia, such scammers sit in a pretrial detention center until the trial, and in America, you can use a house that was bought with stolen money as collateral. Russia is also fun, but I have never seen such a circus.

DanWalker

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Quote from: poodle63 on December 23, 2022, 07:12:33 PM

Quote from: Yogee on December 22, 2022, 12:30:58 PM

I agree with the point that the timing of the declaration sounds fishy. They probably want to get more money from the defunct exchange through heavy penalties. It looks like those poor investors waiting for a refund will get an even lesser amount hehe. This decision will definitely set as a precedent for future investigations of SEC on exchange tokens.

The government was also greedy bastard. This scammer was able to did 250 millions bail bound which has become a very big question for us https://cointelegraph.com/news/crypto-twitter-confused-by-sbf-s-250m-bail-and-a-return-to-luxury
FTT can be considered as a scam investment product offered to the investor. Poor investors will never get their money. They have lost it forever. They shall aware their money being used to secure bail for SBF.
I don't know why this guy didn't even get arrested. that's shitty thing in the politic.

Government is human too, so if they are greedy it is normal, we are greedy when investing in crypto too, if we are not greedy we will never lose money for FTX.
What I care about is who is willing to spend that much money to get SBF out on bail, and with the government offering such a high fine, they probably don't want SBF on bail either. I know that investors will have little chance of getting their money back, but that money would rather fall into the hands of the government than let an asshole like SBF hold.
I used to think SBF would get away with it, but given what's going on, we can expect him to receive the heaviest punishment for his actions.

o48o

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Quote from: poodle63 on December 23, 2022, 07:12:33 PM

The government was also greedy bastard. This scammer was able to did 250 millions bail bound which has become a very big question for us https://cointelegraph.com/news/crypto-twitter-confused-by-sbf-s-250m-bail-and-a-return-to-luxury
FTT can be considered as a scam investment product offered to the investor. Poor investors will never get their money. They have lost it forever. They shall aware their money being used to secure bail for SBF.
I don't know why this guy didn't even get arrested. that's shitty thing in the politic.

How is the government greedy here? You know they have to pay the bail money back to SBHs parents, or whomever paid the bail. Right?

However it's understandable that they set a high enough bail to prevent fleeing to Russia or where ever there's no extrsction contract with usa

dwminer1

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After the SEC complaint, there were legitimate concerns in the environment about BNB and other exchange tokens. However, in the SEC complaint we can find this statement: "If demand for trading on the FTX platform increased, demand for the FTT token could increase, such that any price increase in FTT would benefit holders of FTT equally and in direct proportion to their FTT holdings". If the SEC argues its decisions in this way, they can issue a similar opinion about almost any cryptocurrency. This verdict may therefore have more serious consequences than most people think.

cryptoaddictchie

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Quote from: asriloni on December 22, 2022, 12:07:09 PM

The only problem is why that garbage SEC was taking such decision after FTX has been collapse. Why didn't SEC take a step when FTX was just launching FTT?

SEC was also garbage.

Nice point. It seems they making a fud or penalize it when the damage has been incurred already. FTX been scrutinized when things go wrong already. If they did classified that as security then they should check all start up exchanges already. Now they are hitting on big ones like Binance. If in any case it just failed this will be a nasty things to market.

poodle63

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Quote from: Yogee on December 22, 2022, 12:30:58 PM

I agree with the point that the timing of the declaration sounds fishy. They probably want to get more money from the defunct exchange through heavy penalties. It looks like those poor investors waiting for a refund will get an even lesser amount hehe. This decision will definitely set as a precedent for future investigations of SEC on exchange tokens.

The government was also greedy bastard. This scammer was able to did 250 millions bail bound which has become a very big question for us https://cointelegraph.com/news/crypto-twitter-confused-by-sbf-s-250m-bail-and-a-return-to-luxury
FTT can be considered as a scam investment product offered to the investor. Poor investors will never get their money. They have lost it forever. They shall aware their money being used to secure bail for SBF.
I don't know why this guy didn't even get arrested. that's shitty thing in the politic.

Dave1

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Not sure if this will set the precedence though, even ETH has a lot of issues with SEC that we don't know how they will classify it and there has been numerous debates publicity about it.

So who knows, and I doubt that it will have a negative effect on other exchange bearing tokens including BNB, or KCS.

Still going to be case to case basis, that's how I see it.

o48o

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Quote from: ChillyMatthew on December 22, 2022, 11:50:23 AM

-cut-
Could this decision have an impact on similar tokens, given that almost every exchange issues its own tokens?
-cut-

No, that's not how it works, it isn't a security because it's an exchange token. There are either irregularities during sale phase or marketing. On these things it's essential what sales people say, what sort of marketing there was etc. Token doesn't need to provide dividends or other income to be a security. All that needs is a promise of providing income in some point. There have been many icos in the past that have talked about the price and the markets and they have been charged of being securities later or will be some day when sec has time for it.

crzy

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Quote from: fzkto on December 22, 2022, 04:16:04 PM

I think here we are talking only about American exchanges. That is for example Binance or Huobi are in another jurisdiction and SEC doesn't mean much to them. The maximum that the SEC can limit is to close the service Binance US, which is not very popular in contrast to the main Binance. In general, this news should not affect other exchanges.

This mainly concern US citizen but of course we know US is still the basis of many that’s why it will still affect other exchanges, this is just like a case for XRP which many seems to be more concerned. Its too late for this news though and I don’t know if this can still affect FTX where in fact they are no longer here in the market so this SEC decision is too late for the investors of FTX.

serjent05

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Quote from: so98nn on December 22, 2022, 12:24:53 PM

Obviously man, it is going to be biggest problem if it is listed as security currency/asset then definitely it’s big issue. With the time it would be unrealistic because slowly it will fail the exchanges as well as the whole meaning of crypto currency would drain down the sink. I mean one by one they will either get into the control of government and they will impose harder regulations on them the time. This will ultimately stress out the users on doing their KYC and forcing them to show the crypto assets. That would be bad for crypto economy.

That is what I am thinking too, once the FTT token is classified and listed as a security token then additional criminal charges will be pressed on the FTX exchange. I believe(correct me if I am wrong) one cannot release a security token without the approval of the SEC or financial institution. This will add more years of prison for SBF and his subordinates.

electronicash

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Quote from: asriloni on December 22, 2022, 12:07:09 PM

The only problem is why that garbage SEC was taking such decision after FTX has been collapse. Why didn't SEC take a step when FTX was just launching FTT?

SEC was also garbage.

well there wouldn't be funds donation from SBF, you wouldn't want it if you are one of those in the congress visited by SBF's friends.
SEC will make the rest of the tokens to be security as well. Gensler already said it before that 99% of the crypto are security except BTC. but this time at least SEC step up and maybe dev teams can no go offshore.

there will be a lot of crackdowns by the country where they go, its time for each country to also make money out of crypto companies. Bamahas is one of the lucky ones to got in the first.

cabron

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Quote from: fzkto on December 22, 2022, 04:16:04 PM

I think here we are talking only about American exchanges. That is for example Binance or Huobi are in another jurisdiction and SEC doesn't mean much to them. The maximum that the SEC can limit is to close the service Binance US, which is not very popular in contrast to the main Binance. In general, this news should not affect other exchanges.

This will make binance.US work differently than they .com maybe they will not use the BNB tokens in this exchange. All the rest of the exchange native tokens will soon also be Security. They really have to point out a really clear regulation so developers can also do what is needed. SEC will probably declare a lot of tokens to be SECURITY and my guess is ETH to be the next.

fzkto

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I think here we are talking only about American exchanges. That is for example Binance or Huobi are in another jurisdiction and SEC doesn't mean much to them. The maximum that the SEC can limit is to close the service Binance US, which is not very popular in contrast to the main Binance. In general, this news should not affect other exchanges.

vv181

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Quote from: ChillyMatthew on December 22, 2022, 11:50:23 AM

Quote

“The large allocation of tokens to FTX incentivized the FTX management team to take steps to attract more users onto the trading platform and, therefore, increase demand for, and increase the trading price of, the FTT token.”

Could this decision have an impact on similar tokens, given that almost every exchange issues its own tokens?

What kind of impact you are talking about? a tighter regulation? other exchange copying the methods?

It is expected due to the recent FTX insolvency, regulation will be tighter, and more eyes will be keeping an eye on cryptocurrency. Not solely because of FTX, but as the ecosystem evolve and grow bigger, a centralised institution will take a stance. Such centralized exchanges' token is no doubt are more suitable to be categorized as a security, so nothing unexpected for me.

As for other exchanges copying the method, the incentivization scheme surely benefits the exchange on its own, which is why it exists in the first place.

zasad@

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FTT R.I.P.

https://cryptoslate.com/alameda-ceo-caroline-ellison-pleads-guilty-faces-no-criminal-charges/
Alameda CEO Caroline Ellison takes plea deal, faces no criminal charges
A recently unsealed plea agreement shows that Caroline Ellison, the CEO of Alameda Research, pleaded guilty to seven fraud charges. In return for cooperating with authorities, Ellison faces a $250,000 fine and forfeiture of any assets she obtained from FTX money.м

Yogee

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I agree with the point that the timing of the declaration sounds fishy. They probably want to get more money from the defunct exchange through heavy penalties. It looks like those poor investors waiting for a refund will get an even lesser amount hehe. This decision will definitely set as a precedent for future investigations of SEC on exchange tokens.

so98nn

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Obviously man, it is going to be biggest problem if it is listed as security currency/asset then definitely it’s big issue. With the time it would be unrealistic because slowly it will fail the exchanges as well as the whole meaning of crypto currency would drain down the sink. I mean one by one they will either get into the control of government and they will impose harder regulations on them the time. This will ultimately stress out the users on doing their KYC and forcing them to show the crypto assets. That would be bad for crypto economy.

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Quote from: asriloni on December 22, 2022, 12:07:09 PM

Quote from: ChillyMatthew on December 22, 2022, 11:50:23 AM

Could this decision have an impact on similar tokens, given that almost every exchange issues its own tokens?

The only problem is why that garbage SEC was taking such decision after FTX has been collapse. Why didn't SEC take a step when FTX was just launching FTT?

SEC was also garbage.

Because they are benefiting on it for there money laundering scheme and now they are destroying it to burn all the evidence along with the exchange. I doubt that FTX can recover with this pressure coming from US government that want to cover there asses on this big scandal. Even SBF is already use as escape goat now to hide his connection on democrats scam.

SEC itself is not the garbage but the people controlling it since SEC is just the department that gives security to all consumer while the current chief is affliated to SBF through MIT connection.

goaldigger

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So this is just a confirmation about FTX, late timing for SEC because this platform is no longer exist.
Anyway, SEC should start reviewing the token of many exchanges because they might be misleading their investors just to get more funds, SEC should investigate this in the first place before issuing any kind of license or certificate.

asriloni

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Quote from: ChillyMatthew on December 22, 2022, 11:50:23 AM

Could this decision have an impact on similar tokens, given that almost every exchange issues its own tokens?

It could and why not? IMO if all of exchange site tokens could be classified as security. Any exchange token was sold as investment contract to the its investors. That reminds me with binance when it has raised a few million dollars from investors when it just getting started a few years ago.

The only problem is why that garbage SEC was taking such decision after FTX has been collapse. Why didn't SEC take a step when FTX was just launching FTT?

SEC was also garbage.

Topic: SEC classified FTT token as a security (Read 149 times)