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Comment by inasio | Hacker News Reader

Probably not the angle parent was going for, but CoinDesk is owned by Digital Currency Group, who had significant exposure to this mess (and their Genesis trading arm appears to be currently evaluating bankruptcy), so in some sense CoinDesk precipitating FTX's collapse had severe effects on their own situation.

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IMHO the Coinbase story was a distraction. FTX went down because Binance dumped their entire position all at once and exposed how cooked FTXs books were. They said it was because of the Coinbase story, but really it was a personal beef with SBF and how he was writing crypto market regulation for legislators that was going to hurt Binance.

> FTX went down because Binance dumped their entire position all at once and exposed how cooked FTXs books were.

FTX went down because of how cooked their books were.

Whatever other stuff that was going on around the edges, they wouldn't have gone down if they hadn't cooked their books.

Their books could have stayed cooked for a long time. Just look at Tether, or Bernie Madoff. As long as nobody calls your bluff you can just keep on raising.

Coinbase story?

This is incorrect. Binance planned to liquidate the entire FTT over a month or two. They still hold a significant FTT position.

They still have FTT because it's literally impossible to unload. There was no more money backing it and the exchange was halted.

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