SBF of FTX: I'm sorry. I fucked up. (Twitter thread on FBX failure)

The point of many of the banking regulations, is that it's easy to make mistakes, even for the most honest brokers, when handling other people's money. "Crypto prophets" have praised freedom from onerous regulation as a benefit; but that position misses that some regulations are more beneficial than not.

Or it could all be rich arseholes fleecing the gullible tech bros by dealing in "crypto" labeled ponzi schemes that never had much to do with the distributed, unregulated exchange structures the prophets preached about.

The amount of blind faith in this industry is insane. Normal Finance already has dubious grey areas like dark pool trading, but the amount of blind faith put into crypto, especially with companies led by people like Sam, is misplaced. Nobody has yet to explain what makes crypto a viable alternative to other forms of contract. Certainly, use cases do exist, but none of them seem better than what we already have in place. Nobody has turned this technology into something profitable outside of speculating on coins themselves. I would really want to make sure people who openly lie about the capabilities of this technology end up in prison, these exchanges only exist to launder extremely large amounts of money. The fact that they presented themselves as a regulation-free alternative to other markets should be a signal to the SEC or FTC that these companies are trying to present themselves as legitimate exchanges, when they are far from that.

> 24x avg. daily withdraws

Something something about sudden black swans and fat tail events.

It doesn't even have to be about FTX either, can be anything, if Musk takes more drugs than usual and tweets something like: "Lost all my faith in Crypto, now is mortal enemy!" you'd go way above 24x the withdrawls happening in an avg. day.

This is pure greed. From everybody involved, and I mean the users too! How greedy you have to be that you cannot take 4 days to send/receive an international wire. Nobody trades 24/7/365, when you are done trading just take 4 days to extract the money from exchanges , let it reach you bank and park it in cash or Treasuries. Now the option became availible to also earn interest from your bank. First time in 10+ years.

If you don't do it then these people are gonna do it and put your money to work for them (not for you) and you'd never know about it unless something like this black swan happen.

SBF is a total criminal and should be arrested for fraud, lying, and for using client funds for FTX's own trades (per Dow Jones Wire; seen on Bloomberg).

Will he go to jail? Losing billions of dollars might create a lot of powerful enemies I guess.

This is hilarious, telling an absurd amount of people that their money is gone because of a simple math mistake on margins by “me”. You raised many millions on valuations of billions to avoid these very mistakes and have redundancies. To hire experts that double, triple, quadruple check these and create systems that check these margins in near real-time. It’s disgusting that he’s using emotions to retain the US-based costumers that he has remaining.

Is he claiming that FTX is illiquid but solvent? I thought the reports were that they are $6B in the hole.