FTX Investors Warned of Likely Bankruptcy Without New Funds | Hacker News Reader

FTX Investors Warned of Likely Bankruptcy Without New Funds

bloomberg.com

10 points3np11 comments

"'I f---ed up,' Bankman-Fried told investors on the call, according to people with knowledge of the conversation. He said he would be 'incredibly, unbelievably grateful' if investors could help."

Christ almighty. 8 BILLION dollar shortfall? Weren't they saying just a couple days ago that there were no liquidity problems whatsoever? This is beyond embarrassment, it seems downright illegal.

Off topic but I personally hope the meme/stereotype of the slovenly eccentric genius falls out of fashion with startup investors after this whole SBF blowup. It sounds like none of these bluechip VCs did any sort of meaningful diligence, but instead fawned over his strange persona and the fact that he would actively play League of Legends during investor meetings [1].

[1]https://www.sequoiacap.com/article/sam-bankman-fried-spotlig...

I have been thinking the same thing. All hail Tim Cook, boring industrial engineer and operator of antifragile corporations that don't gamble with customer funds.

> antifragile corporations

How is Apple anti-fragile?

Cash flow positive, strong brand, strong IP/moat.

Antifragile has a specific meaning: https://en.wikipedia.org/wiki/Antifragility

Yes, I have read the book too. Because of the systems they have built for the company, they are able to thrive when others struggle.

Context threads in a rapidly evolving development:

Binance to acquire FTX (https://news.ycombinator.com/item?id=33520585) (Yesterday's main discussion here)

Binance acquires FTX (https://news.ycombinator.com/item?id=33520624)

"We will not pursue the potential acquisition of FTX" / Binance (https://news.ycombinator.com/item?id=33537821)

Non binding LOIs get that name for a reason

https://archive.ph/HvuOe

Feels like it’s been a while since we’ve seen a big bankruptcy.

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