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FTX Bankruptcy Update (11/02): SBF convicted on all seven charges

Commissar SFLUFAN
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Commissar SFLUFAN

Commissar SFLUFAN

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Bahamian securities regulators claim that they're the ones holding some of the "missing" FTX assets and that they're doing so under order from the Supreme Court of the Bahamas:

 

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Bahamas regulators confirm they're holding some of FTX's assets

WWW.CNBC.COM
FTX regulators in the Bahamas conceded that they had seized FTX digital assets after being accused of doing so by FTX's U.S. attorneys in an emergency filing.

 

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Securities regulators in the Bahamas conceded that they ordered the transfer of FTX digital assets from company wallets into their own custody, citing the authority granted to them by the Supreme Court of The Bahamas and challenging FTX’s assertion that the U.S. Chapter 11 bankruptcy processes applied to them.

 

In a press statement Thursday evening, the Securities Commission of the Bahamas (SCB) said that it had exercised “its powers as a regulator” and directed the transfer of “all digital assets” of FTX Digital Markets, a Bahamian subsidiary of the FTX empire.

 

The value of the assets is unknown. Crypto research firm Elliptic, however, believes that the $477 million theft reported over this weekend was tied to moves by Bahamian regulators.

 

Statements from both the Bahamas and U.S attorneys suggest “that the “hack” was actually the seizure of FTX assets by the Bahamian government,” Elliptic wrote.

 

The filing struck back at an emergency filing by FTX in U.S. court which challenged the standing of the Bahamian liquidators and asked the Delaware bankruptcy court to intervene and enforce an automatic stay, a standard feature of Chapter 11 bankruptcy proceedings.

 

 

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Commissar SFLUFAN

Commissar SFLUFAN

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This Financial Times essay definitely has the right idea!

 

Let crypto burn - Just say no to legitimacy-inferring regulation

 

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In the aftermath of the collapse of FTX, authorities should resist the urge to create a parallel legal and regulatory framework for the crypto industry. It is far better to do nothing, and just let crypto burn.

 

Actively intervening would convey undeserved legitimacy upon a system that does little to support real economic activity. It also would provide an official seal of approval to a system that currently poses no threat to financial stability and would lead to calls for public bailouts when crypto inevitably erupts again.

 

 

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Put simply, the crypto system as it currently exists is unsustainable. Absent clear and easily enforceable property rights, relying solely on private investors to monitor and discipline the behaviour of opaque intermediaries has never been safe and effective. There is no prospect for a technological solution to these age-old problems.

 

So, the big question is whether authorities ought to create a new regulatory and supervisory framework that protects property rights and enforces the principles of safety and soundness. Concerned about further losses from the collapse of crypto, many people are calling for new rules to protect consumers.
 

Ironically, however, attempts to create a separate structure for regulating and supervising crypto will just make the financial system less, not more, safe.

 

This is true for two reasons. First, it will encourage banks both to purchase crypto assets and to lend against them as collateral, making the banking system vulnerable to plunging market values. In contrast, even the ongoing collapse of crypto values and institutions has had virtually no impact on the wellbeing of the traditional financial markets and firms.

 

Second, new rules would lead to a migration of financial activity from traditional finance to the still less regulated, but newly sanctioned, crypto world. Both crypto and traditional finance are simply combinations of a database and computer code. It would be straightforward for a group of technicians to convert any set of conditional cash flows from one into the other. For example, imagine someone choosing to issue claims on their firm as a crypto token rather than as conventional equity to take advantage of looser rules for disclosure, accounting, custody, and the like.

 

 

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If any new rules are needed, they are ones that limit exposure of traditional leveraged intermediaries to the crypto world.

 

Banks, dealers, insurers, and pension funds should not be allowed to purchase and hold crypto or accept it as collateral. For the most part, crypto today is just a multiplayer online video game (like World of Warcraft). If virtually all the transactions remain internal to the crypto world without links to the real economy, the process might as well be occurring on Mars, leaving traditional finance unaffected.

 

The overriding goal of policymakers should be to keep crypto systemically irrelevant. The best way to do this is let it implode under the pressure of its unsafe and unsound business practices. Meanwhile, authorities should constantly point to the record that crypto is rife with failures and fraud.

 

 

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Ghost_MH

Ghost_MH

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16 minutes ago, Commissar SFLUFAN said:

This Financial Times essay definitely has the right idea!

 

Let crypto burn - Just say no to legitimacy-inferring regulation

 

 

 

 

 

Crypto is now and has always been billed as an unregulated, free from government interference, for the people and run by the people currency. These libertarian crypto bros can't come crying for government assistance and bailouts when all their wealth was built on an MLM that burns the atmosphere. Maybe we should also bail out TF2 hat collectors.

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TwinIon

TwinIon

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45 minutes ago, Commissar SFLUFAN said:

This Financial Times essay definitely has the right idea!

 

Let crypto burn - Just say no to legitimacy-inferring regulation

 

I think that's probably fair, but I think it's also important to note that plenty of crypto activity already falls under existing law. That's why FTX.US is separate from FTX.com. So Crypto guys don't get to pretend that they're immune from the law or that crimes with crypto aren't big boy crimes, but still let them burn their little sandbox to the ground.

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stepee

stepee

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Like any pyramid scheme it’s only a good idea if you are one of the ones early in on the grift. If you get in early and cash out at the right time you can make some money because that’s how it works.

 

But besides just getting in early to whatever made up coin there is no problem that crypto solves so it’s inherently worthless once it reaches a point where there is no longer an “early” and it will just implode as people realize there is no value.

 

You can only pull off the same grift so many times before you run out of customers you haven’t already burned. But I expect crypto to not die but to just hibernate off and on as new generations of suckers are born.

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Commissar SFLUFAN

Commissar SFLUFAN

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This is surely a confidence-inducing measure:

 

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Grayscale refuses to share proof of reserves due to 'security concerns' as shares trade at a 45% discount to bitcoin

WWW.CNBC.COM
Grayscale won't be sharing its proof of reserves with customers, citing "security concerns."

 

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Grayscale, the asset manager running the world’s largest bitcoin fund, said in a statement that it won’t share its proof of reserves with customers.

 

“Due to security concerns, we do not make such on-chain wallet information and confirmation data publicly available through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting procedure,” said a statement on Friday.

 

Following the implosion of FTX and its subsequent bankruptcy proceedings exposing that customer funds were missing, multiple crypto exchanges have jumped to release proof-of-reserve audits in order to assuage investor concerns over the safety of their funds. Others, like Binance, say they soon plan to do so.

 

Grayscale wrote in a tweet that it realized that failing to disclose a proof of reserves would be a “disappointment to some,” but added that a “panic sparked by others is not a good enough reason to circumvent complex security arrangements” that have kept its investors’ assets “safe for years.”

 

Grayscale’s flagship fund is the Grayscale Bitcoin Trust, known by its GBTC ticker. Even as bitcoin trades at a multi-year low of around $16,000, GBTC is trading at a 45% discount to the price of its underlying asset.

 

 

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Ricofoley

Ricofoley

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Crypto Brokerage Genesis Is Said to Warn of Bankruptcy Without Funding

FINANCE.YAHOO.COM
(Bloomberg) -- Digital-asset brokerage Genesis is struggling to raise fresh cash for its lending unit, and it’s warning potential investors that it may need to file for bankruptcy if its efforts fail, according to people with knowledge of the matter.Most Read from BloombergSwedish Housing Is Now in the Worst Rout Since the 1990sDisney Shares Jump on Optimism Over Iger’s Surprise ReturnUS Stocks Drop With Fed Policy, China...

drip drip drip

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TUFKAK

TUFKAK

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1 minute ago, Anathema- said:

 

All you have to do is repeatedly use "beg the question" wrong over and over. 

Did you know you should clean your room and do your bed!?

 

that begs the question what is a bed? what is cleaning? 

 

Seriously I don’t fucking get it.

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TUFKAK

TUFKAK

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8 minutes ago, Anathema- said:

 

Notice the advice is to make your bed not stop attacking women.

That’s just crazy talk! These decidedly average to below average men are entitled to model-neurosurgeons who are virgins and if they say no then they’re bitches and deserve it!

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TUFKAK

TUFKAK

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19 minutes ago, SuperSpreader said:

5'10" here I never think about height. However, I remember people proportional to how much I respect them. Someone can tower over me but if they suck my memory of them is looking down on them. Someone can be short and awesome and I remember them eye level or higher. 

Too tall 3/10.

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