39 Burst results for "Alameda"

Fresh update on "alameda" discussed on Bloomberg Crypto

Bloomberg Crypto

01:03 min | 1 hr ago

Fresh update on "alameda" discussed on Bloomberg Crypto

"To hire easier and faster than ever. This is how we work now. And you have, you know, you have a lot of sources all over the world. Are you talking to folks who left China and move to places like the U.S. or Europe or the UK and are thinking about going back or is it still too early for them? I think it's quite early. Actually, a lot of my sources who were originally based in China have moved to places like Singapore where do you buy where they have a strong Chinese community as well? What I heard from them is that they're generally just sit on the sidelines and wait until sort of more clear guidance from the government. So far, I think the really positive signals has the only send out from Hong Kong, the government is there, what they say sort of is a message of passing through the Chinese government in Beijing as well. Because you mentioned Hong Kong, this was a place that had attracted a lot of crypto talent, including interestingly enough the folks from FTX and Alameda who had originally been based in Hong Kong and many of them were still living there. And the reason that entities like FTX left and when to places like The Bahamas is because they thought that Hong Kong would also be cracking down on crypto in the aftermath of the China crackdown. Is what I'm hearing from you that the atmosphere in Hong Kong is still less restrictive than on the mainland? What are we hearing actually recently Hong Kong had an event that's very much focused on web three development and the participants there I think a lot of them are from the Hong Kong government was sending their encouraging messages to business about we are welcoming web three complaints to come here and to be part of those industry here in Hong Kong and I also heard they're going to be potentially licensing around trading crypto for retail investors in Hong Kong this year. All of them sound quite a promising, I guess, but I think like a lot of other industries that's non crypto. I think because the relationship between Hong Kong and the Mainland China, you know, all of this can be changed just overnight. I think people, again, like Muslims are just sit on the sidelines and not sure if it's really a good time just to go back to Hong Kong. And to your point about timing, it's not like crypto markets are doing amazingly at the moment. Why would this be a moment that folks think that China might want to soften its stance given that other regulators around the world seem to be toughening up theirs? I think that's a really good question. I am not sure about that. It's a hard not to mention our very well-known Chinese investor Justin song in this conversation since he's one of the first people on Twitter mentioned about how China is sending a positive signals around this whole reopening embracing cryptocurrency but I would like to point out in his Twitter thread about their positive and their optimistic he did not mention the word blockchain non crypto at all. So I feel like it's really a sort of guessing or trying to understand what China is standing out at the moment. Got it. Now, as a closing thought, you know, one of the stories that we've been covering for, again, I have no idea what time is. But it feels like a long time, is the Ethereum merge. And the next phase of the Ethereum merge, which is the software upgrade that has made fundamental changes to how that blockchain functions, the next software update is called Shanghai. Yes. Why? I think that's just I know. So when I was exploring the possibility of China reopening, which possibly going to help crypto and the next full market to take place in China and the result, as I mentioned, this whole conversation hadn't been super exciting. Most of them are just speculations based on what people are hearing from Hong Kong based on what people are trying to make the connection between reopening and which can be also encouraging for crypto and blockchain business. At the end, you know, I was like, you might as well just be positive things in the next big upgrade on Ethereum's car Shanghai, which that is as China as they can get. So it's not necessarily that they are directly related, but it's almost as if the universe is giving hints. Yes, yes, which I think there are not much excitement in the states at the moment and you might as well just take an insights you can get just hoping that what happened. People are like scrabbling around being like, is this good news? Is this good use? Let's find some good news. Yes. Well, thank you, as always. I appreciate you taking the time to join the episode. Thank you for having me again. Pleasure. You can find more of Mueller's reporting on the Bloomberg terminal and on Bloomberg dot com. And be sure to check out our newsletter, Bloomberg crypto. This is Bloomberg crypto, a daily podcast from Bloomberg and iHeartRadio. For more shows from iHeartRadio, visit the iHeartRadio app. Apple podcasts or wherever you get your podcasts. Send us your comments, questions or suggestions for the show to crypto at Bloomberg dot net.

Hong Kong China Chinese Government FTX Hong Kong Government Justin Song Alameda The Bahamas Ethereum Merge Singapore Beijing Europe Twitter UK U.S. Mainland Shanghai Bloomberg Iheartradio Mueller
DOJ Seeks To Cut Off Sam BankmanFrieds Communication With Key People Involved in Fraud Trial

The Daily Hodl

00:40 sec | 2 d ago

DOJ Seeks To Cut Off Sam BankmanFrieds Communication With Key People Involved in Fraud Trial

"7 p.m. Sunday, January 29th, 2023. DoJ seeks to cut off Sam bankman fried's communication with key people involved in fraud trial. The U.S. Department of Justice DoJ is seeking to stifle Sam bankman freed's communications with FTX and Alameda research employees before his trial. In a new court filing, the DoJ asks for a ruling that would cut off bankman freed's access to all current and former employees of the embattled crypto firms as they may be prone. The post DoJ seeks to cut off Sam bankman fried's communication with key people involved in fraud trial appeared first on the daily HODL

Sam Bankman DOJ FTX Bankman Alameda
Fresh update on "alameda" discussed on The Crypto Overnighter

The Crypto Overnighter

00:44 min | 6 hrs ago

Fresh update on "alameda" discussed on The Crypto Overnighter

"Other crypto related services. A group of U.S. senators wrote a letter to silvergate capital, asking for information about FTX collapse. They say silvergate didn't fully answer their previous questions about handling user funds. Silvergate claimed it couldn't share information due to confidentiality, but the senators don't accept that. The senators wrote a letter, saying that they need more information to understand silver Gates involvement in nefty axis collapse. They say silvergate used the federal home loan bank as a lender, so it's important to know what happened. They asked silvergate for answers in a previous letter, but say the firm didn't give all the important information needed to understand its role in the FTX situation, including if it handled user assets correctly. So what happened is, after FTX is collapse, senators Warren and White House asked the Justice Department to take a look at what happened with FTX. They asked the DoJ to consider charging folks. So in their letter, they gave silvergate until February 13th to respond back, including reporting on their due diligence practices. Shares of silvergate were up 4% in early trading on Tuesday, which sounds great until you realize they're down 88% over the last year. Speaking of FTX, shockwaves from the exchanges collapse are still being felt as far off as Kazakhstan. Now what's happening is Kazakhstan's crypto regulator is proposing new requirements for digital asset exchanges, and these changes include the segregation of customer assets and risk mitigation. They're looking to the example of FTX poor governance as their reasoning. The Astana financial services authority put out their draft enhancements to the digital asset trading facility, crypto exchange licensing framework. They were submitted for public comment on Monday. This was after afsa said there existing rules landscape had revealed contradictions, inefficient provisions, and uncertain definitions. And make no mistake, their focus is on FTX failure, especially the new regulations on segregating customer's funds. The tangled financials between FTX and Alameda won't be allowed under Kazakhstan's new rules. Assets proposed changes also addressed liquidity risk, proper disclosure, and risk of arbitrage. In things have really picked up crypto wise for Kazakhstan. After China put the kibosh on crypto, Kazakhstan took over the second slot as far as Bitcoin hashrate production goes. It got so bad they had to redo the electricity rules to accommodate the influx of new miners. Binance

Silvergate Capital Silvergate Justice Department Kazakhstan Astana Financial Services Auth Gates Afsa U.S. Warren White House Alameda China
DOJ Claims Sam BankmanFried Tried to Influence Witness Testimony, Asks for Communications Ban

CoinDesk

00:27 sec | 2 d ago

DOJ Claims Sam BankmanFried Tried to Influence Witness Testimony, Asks for Communications Ban

"2 a.m. Saturday, January 28th, 2023 DoJ claims Sam bankman fried tried to influence witness testimony, asks for communications ban federal prosecutors wrote a letter to U.S. district court judge Lewis Kaplan on Friday, requesting that he modified the conditions of Sam bankman fried's bail to include ban on private communications with current and former employees of FTX and Alameda research.

Sam Bankman U.S. District Court Judge Lewis Kaplan DOJ Sam Bankman Fried FTX Alameda Research
Fresh update on "alameda" discussed on Crypto Curious

Crypto Curious

01:44 min | 8 hrs ago

Fresh update on "alameda" discussed on Crypto Curious

"Again so we will cover off where we're at with this story and what's going on. I think when we finished up he had just been arrested. And so let's give you an update on where we've got to now. Well, he is now back in the U.S. where he is he's pleaded not guilty in a Manhattan court now among the charges are why fraud rather conspiracy to commit fraud and money laundering. Now we've spoken about it on the podcast. His parents are extremely influential. They have their own law firm, I believe. So his parents in another undisclosed group put up bail, which was 250 million. One of the largest bile amounts ever sit in history, by the way. That's crazy. So now he's a bit like me trace. He's back at his parents. Which happens to the best of us. Yeah, look, and I think we're all kind of just starting to forget about this and get on with our lives. And then boom, something happens, and he's back in the spotlight again. And on the 12th of January, my little sister's birthday, he did a tell all sub stack blog and for those who don't understand stub stack, that's like a blog like a blog site and you just write you right. But then if you want to read more, you have to pay for a subscription. So you can read the first one, then you have to pay for more. So basically, this is the first time he's gone on record speaking in depth since he's arrested, talking about the key points in what's happened. Did you read through that, Craig? Yeah, I did, and there's a lot to it. One of the things I laughed at, so he said, if FTX could repay its customers, if they rebooted today, so they could pay its customers. They've also said that FTX U.S. is solvent. Now, he's literally just copy and pasted a Google Doc of numbers, just saying, say he's proof we're solvent. What is that? Proof that that's even legit. Like anyone could do that anyway. He's repeated for about the 6 millionth time. Hey, you had nothing to do and you had no idea what happened with Alameda, which is very important with money wandering cases because if he pleads ignorance that means there's no intent. So he stayed very consistent with that. He's also said that he didn't still fund or stash money away, so I guess you will remember when the FTX got hacked in the back end of all of this. He said he had nothing to do with that. He also said that he didn't commingle funds, the real estate purchases with his 11 bedroom mansion, his $1 billion loans that he learned to himself was all not shady. And he also doesn't like the new CEO, he said it's ridiculous that the new CEO hasn't paid back the U.S. users and they haven't been made whole yet. So it's easy for him to say that. He's been he's been very consistent the whole time with this to be fair. Yes, interesting. I thought it was really interesting what he said around not having any idea of what's going on with Alameda because he was saying that he owned 90% of the company in late August last year when he was sharing the firm's financial with Forbes. He actually gave the documentation to Forbes to prove that he was a billionaire. So that's not going to look very good in court.

FTX U.S. Manhattan Alameda Craig Google Forbes
BankmanFried Wanted Crypto Prices to Go Up to Plug FTX Hole

Crypto Briefing

00:23 sec | Last week

BankmanFried Wanted Crypto Prices to Go Up to Plug FTX Hole

"For p.m. Wednesday January 18th, 2023. Bankman fried wanted crypto prices to go up to plug FTX hole. Members of Sam Meghan Fritz inner circle quite possibly FDX cofounder Gary Wang and FTX chief of engineering nishad Singh issued multiple warnings to Sam bankman fried about Alameda's negative balance. If only prices

Sam Meghan Fritz FDX Gary Wang FTX Nishad Singh Sam Bankman Alameda
Fresh update on "alameda" discussed on Crypto Voices

Crypto Voices

01:22 min | 16 hrs ago

Fresh update on "alameda" discussed on Crypto Voices

"Sam's parents are both so highly connected to politics. His mom created this kind of dark pool kind of basically tumblr to wash contribution. So Silicon Valley, entrepreneurs and venture capitalists could get around campaign finance laws. I mean, that's essentially what it is. And so, you know, Sam, you know, became the largest donor to Biden's election campaign. How the hell does that happen? I mean, seriously. Yeah. So that's one. Two, his dad, not only taught Peter Thiel and gave Peter the idea for his IRA where he cleansed all that capital gain on his private companies, it would issue low base of stock into the IRA and then didn't pay any tax and save like $5 billion or so. I say like a $1 billion on $5 billion of gains. Pretty impressive. But then more important, turns out dad went to Yale law school with all the glitterati in Washington. And was a contractor slash consultant slash adviser, whatever you want to call it. To the three letter agencies. So that's weird. But the thing that's the most weird to me this company went literally from nothing. Right? Nothing. I mean, it was this little research company called Alameda, which now we know wasn't some big trading firm like Goldman Sachs and anyone who's seen Caroline. I'm sorry. She was not in charge of anything. Zero chance. Zero chance she some genius whiz kid. You know, people tried to compare Alameda to renaissance, like are you kidding? You joking? That's insulting to Jim simons. Jim's lowest level PhDs at renaissance are smarter than all the people in Alameda, as far as I can tell. So, and they weren't doing what they said they were doing. They literally were just stealing money. Laundering. But here's the part that's the tardis for me. You know, fine. You want

SAM Peter Thiel Tumblr Silicon Valley Biden Alameda Yale Law School IRA Peter Jim Simons Washington Goldman Sachs Caroline JIM
Bitcoin Weekend Run Breaches 20,000 Mark, Dominates The Altcoins

NewsBTC

03:50 min | 2 weeks ago

Bitcoin Weekend Run Breaches 20,000 Mark, Dominates The Altcoins

"2 p.m. Sunday January 15th, 2023. Bitcoin weekend run breaches 20,000 mark dominates the altcoins. Even if the cryptocurrency industry crashed in 2022, Bitcoin's status as the alpha coin has remained remarkably stable. With a market capitalization of over 398 billion and a trading volume of 24 million 180,295, Bitcoin's dominance in the last 24 hours has increased by 43. According to market watchers, the BTC bull market officially began in 2023 and is expected to increase in value. In addition, the United States consumer price index CPI was issued earlier this week, showing that the U.S. dollar's value is decreasing relative to other currencies. On the other hand, the CPI data gave the market the confidence it needed to follow inflation's downward trend. Related reading Bitcoin price touches 20,000 for first time post FTX collapse in the previous week, BTC dominance increased by almost two, returning to a multi month high as the value breached the 20,000 level. Bitcoin shows bullish momentum wrecked capital, says that BTC will surprise investors next week by trading above 21,000. This upswing encouraged traders and investors worldwide to reenter the Bitcoin market and make some quick bucks. That's a very strong BTC dominance retest of blue as support a weekly close at these current levels would likely set BTC dominance for further gain heading into next week Bitcoin looks set for enjoying more market dominance, likely at the expense of alcohol crypto Bitcoin HTTPS T co 86 Cusack QBR 5 HF pick dot Twitter dot com one QI BLE 7 P rig capital rig capital January 13th, 2023 after BTC officially surpassed 17,000 at the beginning of this week, the outlook for the asset has been more bullish than it was at the end of 2022. On Friday evening, the price of BTC surged beyond 18,000 then 19,000 and finally pumped to 20,000. The next hour saw rise initiated by the bulls, which ultimately pushed BTC up to near 21,000 on Sunday. Related reading Bitcoin short squeezed 93 million shorts liquidated in one hour at this price, Bitcoin has made up all of its ground since the FTX Alameda research meltdown more than two months ago. Even if it has dropped from its local peak, the price is still well above 20,000. The cryptocurrency's market valuation is close to 400 billion with many investors hoping for a new bull run to begin any day. Fun struts head of digital asset strategy Sean Farrell stated to Bloomberg crypto assets performed well following the soft CPI print suggesting that crypto's correlation to macro is not going away anytime soon as Bitcoin surges all coins retreat on yesterday's daily charts, most altcoins showed gains, but those figures are now negative. After increasing by more than 35 in a day and nearly 70 in a week it has turned bullish and is now moving in that direction. However, it is currently sitting below that level due to the daily decline of 4.5. The top ten daily cryptocurrencies that lost value are Dogecoin doge, polkadot DoD like coin LTC, shiba inues HIV, avalanche, cardano ADA, and polygon Matic. The value of alternative cryptocurrencies like ADA and doge have dropped by 0.34 and 0.08, respectively from their respective 24 hour highs. The value of ADA and BNB has decreased marginally over the previous day. Both coins, however, have seen substantial gains during the past week, rising by more than 21 and 11, respectively. Featured image from unsplash dot com, charts from trading view dot com.

Bitcoin U.S. BTC Sean Farrell Bloomberg Crypto Bulls Twitter Polygon Matic BNB ADA
Djed Review Cardanos Algorithmic Stablecoin solution.

Coin Bureau

00:37 sec | 2 weeks ago

Djed Review Cardanos Algorithmic Stablecoin solution.

"7 p.m. Monday, January 9th, 2023. Jid review cardano's algorithmic stablecoin solution. Despite what the name implies, many stablecoins haven't proven to be very stable in recent years. The ramifications of the implosion of the UST algorithmic stablecoin in May 2021 are still felt to this day. Even though we've now moved to the FTX contagion, it is not difficult to trace a line from Alameda's woes. The post jib review cardano's algorithmic stablecoin solution. Appeared first on coin bureau

Alameda
Alameda liquidators get liquidated while consolidating funds on DeFi lending platform Aave

Forkast

00:22 sec | 2 weeks ago

Alameda liquidators get liquidated while consolidating funds on DeFi lending platform Aave

"12 p.m. Friday January 13th, 2023. Alameda liquidators get liquidated while consolidating funds on defy lending platform ave. Alameda research liquidators were liquidated for U.S. 72 zero zero zero from an unchained position on decentralized finance defy lending platform aave, while trying to consolidate funds.

Alameda U.S.
BankmanFried May Plead Next Week Before Judge Lewis Kaplan In NY Federal Court

Blockchain News

00:29 sec | Last month

BankmanFried May Plead Next Week Before Judge Lewis Kaplan In NY Federal Court

"1 a.m. Thursday, December 29th, 2022. Bankman fried may plead next week before judge Lewis Kaplan in New York federal court. Former FTX CEO Sam bankman fried will appear in court on January 3rd. He faces two wire fraud charges and 6 conspiracy charges for the FTX Bitcoin exchange crash. His closed circle at FTX and Alameda research pled guilty and cooperated. Read more.

Bankman Judge Lewis Kaplan FTX Sam Bankman New York Alameda
Market Analysis Report 29 Dec 2022

CryptoCompare

00:22 sec | Last month

Market Analysis Report 29 Dec 2022

"9 a.m. Thursday, December 29th, 2022. Market analysis report December 29th, 2022. Alameda research liquidates millions in tokens amid criminal charges micro strategy to offer Bitcoin lightning network solutions by its CEO warns about widespread API key leaks from three commas.

Alameda Research Bitcoin
SBFs Alameda Issues Started Long Before Crypto Crash

InsideBitcoins

00:21 sec | Last month

SBFs Alameda Issues Started Long Before Crypto Crash

"9 p.m. Sunday, January 1st, 2023. SPF's Alameda issues started long before crypto crash. The reputation of Sam bankman freed's trading company, Alameda research LLC, served as the foundation for the cryptocurrency exchange FTX. Alameda brought Wall Street's tricks to

Sam Bankman Alameda Alameda Research Llc Foundation For The Cryptocurre
Sam BankmanFried Denies Moving AlamedaLinked Funds None of These Are Me

Decrypt

00:15 sec | Last month

Sam BankmanFried Denies Moving AlamedaLinked Funds None of These Are Me

"11 p.m. Friday, December 30th, 2022. Sam bankman fried denies moving Alameda linked funds none of these are me SPF tweeted for the first time since December 12th to push back against speculation that he moved Alameda funds.

Sam Bankman Alameda
"alameda" Discussed on The Decrypt Daily: Bitcoin & Cryptocurrency  News Podcast

The Decrypt Daily: Bitcoin & Cryptocurrency News Podcast

08:30 min | Last month

"alameda" Discussed on The Decrypt Daily: Bitcoin & Cryptocurrency News Podcast

"It's at number 18 in total market cap. It's at 3.4 billion, but it's down 5.8% in 24. It is not looking good for a Solana. The total market cap is sitting at 799.7 billion of BTC dominance of 40% in an F dominance of 18.4. And really quick something I want to put on your radar. This is the end of the year. We are going to be tax harvesting a buddy of mine in a long-term listener of the podcast has put something on my radar. It's called acquainting. You can watch a YouTube video about what that does and how it helps you harvest your coins so you can harvest those taxes at the end of the year and making sure that you're lacking in those losses. So click that link in the show notes again, this is not sponsored. I haven't used it personally, but it is a tool that I thought was cool, and I do trust the guy. However, be safe. Never got your private key. Never grew out your seed phrase. Make sure you're paying attention to APIs and never give up data that you're not comfortable giving up and you know what try to protect your data is all across. But check it out. It might be a tool to help you lock in those losses. Moving into today's headlines and I think the most notable news today is that Alameda lings addresses are beginning to move tokens around and swap tokens and put them in different addresses and different exchanges. Martin Lee at the MLP X on Twitter has been tracking all of this and this is going to be a little hard to follow on a podcast because of the logistics of multiple addresses and multiple things being said, here sent there, but we're going to try our best. Yesterday, Martin Lee writes, yesterday, I'll meet a wallet's move funds into two fresh wallets before sending it to change now slash fixed float. I did a deep dive in transactions and noticed that 6.66 F came from a wallet labeled SPF. Here's a summary of the transactions below. While it won, received, 570 F 303 of those asper received from a wallet tagged Alameda, 666 eth from unknown wallets might be Alameda. .66 S came from SPF. They then sent 520 as to Walla two, 50 F was transferred to another fresh wallet and sent to change now. While it too, and by the way, I'm just saying well at one wallet two, if you look at this Twitter thread link is in the show notes, you'll see the wallet addresses the zero X addresses as well. Continuing, while the two receive 719,498 lido and 230 F from Alameda wallets. 520 F from wall at one and four F from unknown wallets. Leto tokens were swapped to 601.49 F and 1158.9 were swapped to $1.4 million in USD T. Then, 200,000 USD T was swapped to 11.9 sbt on curves, synthetic swap before being swapped to 10.336 ren BTC. Ren BTC was redeemed. 200,000 USD T was swapped back to 164.3 F 360.5 listened to a fresh wallet, which then sent funds to change now slash fixed float. 800,000 USD T was sent to fresh wallets, which sent it to fixed float. 200,000 USD T was sent through a couple of wallets before being sent to binance. Total received 719,498 approximately 804 F total sent, 10.336 BTC, 410.5 F to change now slash fixed float, 800,000 USD T to fix float and 200,000 USD T to multiple wallets eventually going to binance. And you could track this all on chain. He concludes by saying there seems to be two sets of transactions happening. The odd looking ones, as I mentioned above, more normal looking ones happen after the odd ones and are being sent to this wallet that is under the liquidators regulators control. So this is just interesting to see all this stuff being transacted and moved around. Nobody really has a clear understanding who is doing every transaction, so this seems to be evolving. And by the way, I want to give a shout out to Jared from Columbus, Ohio, who says he loves the show and put this on my radar. Thanks Jared and thank you for listening. The United States Department of Justice is investigating hundreds of millions of dollars worth of cryptocurrency taken in unauthorized transactions from FTX. On November 11th if you guys remember, shortly after FTX filed for chapter 11 bankruptcy, something happened. Lots of cryptocurrencies were moving out of the exchange into different exchanges and converted into different cryptocurrencies. How much? Well, around $650 million worth of crypto left the exchange in total. Federal prosecutors are tracking the assets and have managed to freeze some of them. Celsius, they will file a petition requesting an extension of the deadline for users to submit their claims in the ongoing bankruptcy proceedings. And they're going to do that. And they're trying to extend that for another month. The original deadline was January 3rd, and now they're trying to push it back until early, February. The firm said the extension is needed to provide account holders with the additional time to file any proofs of claim. Celsius creditors have filed more than 17,200 claims as of today. And this is according to the firm's claims agent. But not only are creditors trying to get their money back and retail investors and all these other people that, yes, of course they're entirely returning their funds. If you can, it looks as though the lawyers are there too. It was recently reported that lawyers and other advisers of the Celsius case have been sinking nearly $53 million in legal fees for their services in just four months. One such law firm Kirkland and Ellis built almost $20 million for its services from July to October. Followed by wait in case LLP, which they're trying to build $10.2 million. Other notable advisers in the Celsius case are Alvarez and marsal, they're building around 6.5 million, and 3M advisory partners, they're building $4 million, which goes to show you I am totally in the wrong business. Last week a group of traders said that $22 million worth of crypto had been stolen through compromised API keys from the trading platform three commas. The announcement came after anonymous Twitter user obtained 100,000 API keys belonging to three commerce users and published them online. Three comments, they initially said, that's BS. There was no security issue on its end. Zack XBT tweeted for weeks to re commas have been blaming its users and accepting zero responsibility. Coin mamba said, you keep lying and saying that it was our fault instead of taking responsibility and prevented further exploits. The CEO of three commas, Yuri Cerro, tweeted this even. And he tweeted this on December 21st, people expect influences like you to check the info and not mislead them. Do you or any of the peoples in your group who claim that this is a three commas fault have any proof of that? Literally, any kind of proof? Impact exchange users should contact the exchange and police, not blame us. However, yesterday, CZ jao came on and said, yeah, I'm reasonably sure that there was widespread API key leaks. From three commas. And after all of that, after millions of dollars of crypto's gone, days go by, three commas finally came out and admitted it was the source of the API leak. Shame on you. And finally, in some good news, especially in a bear market, and during second, 2023, a nouns themed float and 6 costume characters will appear as part of the 134th annual rose parade in Pasadena in California, which we all know it takes a place ahead of the rose bowl in Pasadena, California, and this year's rose ball is going to be played between Penn State and Utah. South green's production company stupid buddy built a nouns inspired float and costume characters for the parade. Stupid buddies cofounder Eric towner said, we really want to show off the fun and positive side of nouns and crypto. There were many possibilities, but ultimately we'd landed on building the biggest and most ridiculous thing we could come up with. A 65 foot long float covered in flowers and marching down the street in front of millions of people. And by the way, Kate Irwin, she wrote a really good article about the most impressive NFT projects of 2022. Some of them I didn't know about. That link is in the show notes as well. Thank you for listening to this episode of the decrypt daily my name is Matthew dimer I'll be back tomorrow. And until then, happy huddling everybody.

Martin Lee Alameda Alameda lings Ren BTC Twitter Solana Jared asper Walla Ellis built marsal
Anon User Publishes Leaked 3Commas APIs

Ethereum Daily

01:07 min | Last month

Anon User Publishes Leaked 3Commas APIs

"User published a list of leaked user API keys from three commas. The linked data includes copies of binance and KuCoin user APIs. The anonymous group claims a three commas employee sold user information to the highest bidder. They also stated plans to publish the full list of over 100,000 leaked APIs in the coming days. Binance CEO CZ weren't users to disable any exchange API ever entered into three commas. Your resort can the CEO of three commerce confirmed that the files published by the hacker were in fact actual user data. He stated that binance KuCoin and other supported exchanges have been asked to revoke all API keys connected to three commas three commas users first reported unauthorized transactions in October, the company later confirmed that that users lost $6 million but attributed the loss to a phishing attack suggesting that users mistakenly leaked their own API keys. Three commas is a crypto trading bot service, which was previously funded by Alameda research. Gamma

Binance Binance Kucoin Alameda
Former Alameda CEO Admits to Using FTX Customer Deposits To Repay Loans on Risky Investments Report

The Daily Hodl

00:40 sec | Last month

Former Alameda CEO Admits to Using FTX Customer Deposits To Repay Loans on Risky Investments Report

"7 p.m. Sunday December 25th, 2022. Former Alameda CEO admits to using FTX customer deposits to repay loans on risky investments report. Caroline Ellison, the former CEO of Alameda research, says the trading firm made short term and open term loans worth billions of dollars to pay for its venture investments. In a transcript of her guilty pleas shared by inner city press on Twitter, Ellison says she agreed with others to pay for the loans by borrowing from. The post former Alameda CEO admits to using FTX customer deposits to repay loans on risky investments report appeared first on the daily HODL.

Caroline Ellison Alameda Research Alameda Ellison Twitter The Post
FTX Update SBF Extradited and Released on Bail, Ellison and Wang Plead Guilty

BitPinas

00:30 sec | Last month

FTX Update SBF Extradited and Released on Bail, Ellison and Wang Plead Guilty

"7 a.m. Saturday, December 24th, 2022. FTX update SPF extradited and released on bail, Ellison, and Wong plead guilty. After going back to U.S. to face his cases, SPF was released on a two 50 M bail. While Alameda CEO Ellison and FTX cofounder Wong have pleaded guilty. The post FTX update SPF extradited and released on bail, Ellison, and Wong plead guilty appeared first on bit penis.

Wong Ellison Ceo Ellison FTX Alameda U.S.
Caroline Ellison Of Alameda Avoids 110Year Sentence With Plea Agreement.

Blockchain News

00:28 sec | Last month

Caroline Ellison Of Alameda Avoids 110Year Sentence With Plea Agreement.

"8 p.m. Thursday, December 22nd, 2022. Caroline Ellison of Alameda avoids 110 year sentence with plea agreement. The agreement limited Caroline Ellison's prosecution to criminal tax offenses. 250,000 bail would free her instantly. The FBI holds former FTX CEO Sam bankman fried. He'll be sent to the southern district of New York for court. Read more.

Caroline Ellison Alameda Sam Bankman FBI New York
Alamedas Caroline Ellison Enters Plea Agreement with DOJ

Crypto Briefing

00:25 sec | Last month

Alamedas Caroline Ellison Enters Plea Agreement with DOJ

"4 p.m. Thursday, December 22nd, 2022. Alameda's Caroline Ellison enters plea agreement with DoJ. Sam bankman freed's partners in crime, Alameda CEO Caroline Ellison, and FTX cofounder Gary Wong, are both cooperating with the U.S. Department of Justice. 250,000 bail, for full cooperation, Caroline Ellison

Caroline Ellison Alameda Sam Bankman DOJ FTX Gary Wong
Martin Shkreli Comments on Sam Bankman-Fried's Upcoming Trial

Unchained

02:55 min | Last month

Martin Shkreli Comments on Sam Bankman-Fried's Upcoming Trial

"Today's guest is Martin shkreli, entrepreneur and investor. Welcome Martin. Hey, thanks for having me. You're a former hedge fund manager and pharmaceutical executive, and you are also one of the most famous white collar criminals of recent times. You are convicted of securities fraud and sentenced to 7 years in prison. And after being released earlier this year, you took not only an interest in crypto, but it also seems the case of FTX. And as we speak, former CEO of sampling is in the process of being extradited from The Bahamas to the U.S. and two of his associates, Caroline Ellison, the former Alameda CEO, and Gary Wang, FTX is CTO, have pleaded guilty to fraud. Given your experience with the justice system as a white collar criminal, which is pretty much the situation, all of these people are facing. I was wondering, what do you think is going through Sam's head right now? Sure. I have lots to say about this. I just wanted to start by saying though that I while I respect the legal outcome in my case, I was found guilty at trial. I certainly went to trial as a not guilty plea. I was found not guilty of several of my charges. I was found guilty of three, not guilty of 5. I still maintain my innocence. So I certainly respect the courts. I am technically a convicted felon and a white collar criminal, but I still dispute those charges and still proclaim my answers just so you just to air that out for a second. Sam's going through a lot. This is the hardest, the people I've talked to, this is the hardest thing you'll ever have to go through in life. It's extremely difficult emotionally to know that your life is in the hands of one person. And that person is in this case judge Ronnie Abrams, Sam's judge. And what you've learned as a criminal defendant in that state of uncertainty is that you have very, very little control over the things you're going to be doing over the next several years throughout the process of the system, but quite possibly after that as well as you serve your son. But the next, it's funny because you think the long sentence is the hard part. Honestly, I think that was the easy part for me and I could say being in a similar situation to Sam sort of it's much easier than the trial prosecution part, which is really, really, really harrowing. It's really difficult. It's fraught with a lot of emotional baggage and difficulty. You feel frustrated, you feel angry, you feel in denial, you have to go through acceptance, you have to go through a little bit of grief. You know, it's really, it hit me the hardest when I saw my mother in, and it's funny, like you don't process it until certain moments. And for me, the moment was seeing my mother in the galley, I guess it's called when my satin Swiss given. And I said, gee, I really messed up.

Martin Shkreli Caroline Ellison Gary Wang SAM Ronnie Abrams The Bahamas Alameda Martin U.S.
FTX founder Sam Bankman-Fried released on $250 million bond

AP News Radio

00:41 sec | Last month

FTX founder Sam Bankman-Fried released on $250 million bond

"Cryptocurrency entrepreneur Sam bankman freed walked out of a Manhattan courthouse. The parents of the founder and former CEO of trading platform FTX agreed to sign a $250 million bond. Bankman fried will stay in their California home as he awaits trial on charges of swindling investors and looting customer deposits. In court, federal prosecutor Nicholas ruse said bankman freed perpetrated a fraud of epic proportions. The judge also required bankman freed to wear an electronic monitoring bracelet. He did not speak during the hearing, except to answer the judge. Carolyn Ellison, the former chief executive of bankman Fred's trading firm, Alameda research, and FTX cofounder Gary Wang have

Sam Bankman FTX Bankman Bankman Fried Nicholas Ruse Manhattan California Carolyn Ellison Bankman Fred Alameda Research Gary Wang
FTX founder Bankman-Fried allowed $250M bond, house arrest

AP News Radio

00:47 sec | Last month

FTX founder Bankman-Fried allowed $250M bond, house arrest

"Cryptocurrency entrepreneur Sam bankman freed walked out of a Manhattan courthouse. The parents of the founder and former CEO of trading platform FTX agreed to sign a $250 million bond. Bankman fried will stay in their California home as he awaits trial on charges of swindling investors and looting customer deposits. In court, federal prosecutor Nicholas ruse said bankman freed perpetrated a fraud of epic proportions. The judge also required bankman freed to wear an electronic monitoring bracelet. He did not speak during the hearing, except to answer the judge. Carolyn Ellison, the former chief executive of bankman Fred's trading firm, Alameda research, and FTX cofounder Gary Wang have pleaded guilty to charges, including wire fraud, securities fraud and commodities fraud. I'm Ed Donahue.

FTX Bankman Sam Bankman Bankman Fried Nicholas Ruse Manhattan Carolyn Ellison Bankman Fred California Alameda Research Gary Wang Ed Donahue
"alameda" Discussed on The Cryptoshow - blockchain, cryptocurrencies, Bitcoin and decentralization simply explained

The Cryptoshow - blockchain, cryptocurrencies, Bitcoin and decentralization simply explained

04:55 min | Last month

"alameda" Discussed on The Cryptoshow - blockchain, cryptocurrencies, Bitcoin and decentralization simply explained

"Again, we can pick on the things how you see it and the things I see it. Yeah, so and also FTX is also interesting, right? FTX got started at Alameda got started in 2018. And FDX 2019. So obviously really falls nicely into line and to kind of taking that as a base layer of the dominoes. Yeah, and then FTX and Alameda, especially 2019, I think. Not really a player that we thought would become really as big as they did as quickly as they did. And then in 2020, really started being an active participant in the whole market. You yourself said that you didn't think there was space for another exchange. And then at some point they become so big and influential. But if you see the involvement in tether and a lot of the other projects, I think they started realizing that there were flywheels to be created that they wanted to be an active part of. And so they started pumping and not just their own token, but they also started pumping other projects, investing in other projects, and then encouraging them to use FTX and the kind of continue. And so I think it all, I think, it's easy to say now to dump everything on FTX, but I think they were a big, big part of the problem, because they started a lot of flywheels that enabled which ones like which ones, like Celsius, Celsius network, they were a strong enabler, tether, like he was involved early on in I think Alameda was one of the largest recipients of USD T, you said that's a nothing burger. But I think if $36 billion goes to Alameda, USD T I mean, as a maybe newer to this space, how do you explain that to me then that Alameda is a big USD T pumper? No, I mean, okay, so it depends on who do we trust and who do we not trust? If we trust tethers statement that dare tether back by dollars and to be honest, at this stage, as of today, I very little reason to not believe that. Does this mean I have to trust them? Sure, right? I still think this thing that's scares me makes me the most skeptical are those maxis that say, oh yeah, you can trust tether blindly, right? Dare statement is normally don't trust anyone, but suddenly we have to trust a freaking bank that normally is the enemy of everything else. So that's what really to be honest, that's what actually makes me skeptical about tether.

Alameda
"alameda" Discussed on Bloomberg Crypto

Bloomberg Crypto

04:37 min | Last month

"alameda" Discussed on Bloomberg Crypto

"Is a bad sign? Yeah, this is one of the interesting quirks in this range that we've been watching in Bitcoin to your point, Bitcoin is like the haven of the cryptocurrencies. It's been around the longest, most liquid, largest market cap, the list goes on. But like you said, I mean, it's share of the total cryptocurrency market, which total market value is somewhere under a $1 trillion right now. But Bitcoin's share is about 40 percent. In 2014, that number was about 80% obviously is more coins have proliferated in the market that has naturally gone down. But typically in times of turmoil, you do see its share of the market go up as investors basically flock to this to ride out the storm. The fact that that hasn't happened, there was actually a great article from you and although thank you. Oh my God. Quoting Noelle atchison who's a market watcher. She points out that maybe that's a bad thing that people aren't rotating to Bitcoin, maybe they're just leaving the market altogether. Maybe some of those retail players individual investors who have come in over the last few years instead of rotating to Bitcoin during this period of tumult, they're just rotating out altogether. So the fact that you aren't seeing Bitcoin sort of gain a larger share here, maybe not the best sign. One place that maybe is seeing a boost though are DeFi exchanges. What can you tell us about that? I think this is going to be such an interesting trend to watch as maybe some of the shell shock Ness of this moment in time fades where people actually begin investing again or where they gravitate to when they're investing in trading cryptocurrencies because obviously FTX had been very popular binance is still really popular. Coinbase has just seen its stock price absolutely plummet during all of this. I think it's down over 80% year to date in the secondary market. And in my conversations that I've had with people just casually, sometimes the question comes up, why is coinbase doing so poorly? Isn't it great that one of their biggest competitors has just been wiped out? And the answer that I get is a sort of what Noelle atchison was talking about, maybe people are leaving altogether. B, there has been this movement back into sort of decentralized exchanges. People have this real desire to own their keys at this moment. They want to be in cold wallets. They don't necessarily trust these centralized exchanges. So whether that continues going forward or whether the binance is of the world, take an even greater share of trading remains to be seen. You've read my mind as usual because I was going to ask you about binance because they did come out and say that they're seeing a boost in trading activity. So there are another player that's obviously benefiting a bit from the fallout from one of their competitors. Exactly and coinbase is trying to capture that same momentum, but it doesn't seem to have sort of the built in cold following of sort of the crypto native set that binance does when I think of coins. Yeah, when I think of coinbase as users, I think more of individual investors retail investors, specifically in the United States, who maybe lost a lot of money in the past year and are afraid of coming back in. Exactly. Volda do, I'm curious. I mean, you spend all day talking to crypto people. I sit right behind you, so I hear you. You're the best desk mate. Or I just use dropped a lot, but I mean, in your conversations, have you noticed a shift in how people are managing risk? I do think people are just being much more cautious and much more prudent. So even in the Alameda gap story, we quote a couple of market makers who said they're just being much more cognizant who they're actually trading with, who their counterparties are, who's on the other end of trades and I think just with the market, the state that it's in right now, everybody is still waiting for things to play out. As you said, we're on bankruptcy watch for a number of companies. Nobody knows what's going to be happening with prices. I mean, there's just so much uncertainty much more than really, usually. And there's a lot of uncertainty in crypto, but just the recent period has been much, much, sort of like a heightened sense of uncertainty. So I think people are definitely being much more cautious. Much more prudent.

Noelle atchison Bitcoin Coinbase Alameda United States
"alameda" Discussed on Bloomberg Crypto

Bloomberg Crypto

01:31 min | Last month

"alameda" Discussed on Bloomberg Crypto

"For the last 6 months or so, the digital assets industry has been knee deep in the trenches of a crypto winter. And now the demise of San benkin freed's FTX and Alameda research have produced a dramatic decline in market liquidity. And while these bankruptcies will take years to be resolved in the court system, the effects of the collapse

San benkin Alameda
"alameda" Discussed on The Crypto Overnighter

The Crypto Overnighter

07:29 min | 2 months ago

"alameda" Discussed on The Crypto Overnighter

"On digital wallets and crypto transactions in compliance with the country's digital assets act. A judge with the sole southern district court has reportedly set aside arrest warrants for tariff cofounder shin hyung song along with three Terra investors and four developers. According to a December 3rd report from South Korea's Yonhap news agency, judge hung yin pyo said that there was little risk of shin or the Terra associates destroying evidence related to the case against the crypto firm. And dismissed the warrants that the sole southern district prosecutor's office issued on November 9th. This report added that the Terra cofounder do Kwan also facing legal action in South Korea for his role was unlikely to return to the country. Authorities in South Korea arrested terraform labs head of business. In October, but judge hung dismissed the warrant in a similar manner within 48 hours. He said it was difficult to see the necessity and significance of the arrest. In contrast, Kwan was still the target of lawmakers and regulators having his name added to Interpol's red notice list and no longer having a valid South Korean passport for international travel. A Kwan has continued to be active on social media following the collapse of Terra despite many crypto users directly blaming him for their loss of funds and the events surrounding the current bear market. In September, the Terra cofounder said that he was quote making zero effort to hide from authorities. He subsequently spoke with the infamous hedge fund manager and pharmaceutical head Martin shkreli on a Twitch podcast discussing FDX and life in prison. Genesis and its parent company digital currency group are in hot water over $900 million in funds, allegedly owed to Gemini's clients. This is according to a report from the Financial Times. The issue arises from the dramatic collapse of FTX in November. Gemini operates a product called Gemini urn, which is a partnership with genesis, that allows investors to earn up to 8% interest by lending out their crypto, such as Bitcoin. On November 16th, genesis suspended withdrawals due to quote unprecedented market turmoil. They also disclose that around a $175 million worth of funds were stuck in an FTX trading account. The company is reportedly having difficulty raising money for its lending unit, but has refuted speculation of its quote imminent bankruptcy. The same day Gemini earned started experiencing issues with deposits, according to the exchanges status page. The product remains unavailable at the time of writing, although all other Gemini services such as the exchange trading engine and the Gemini credit card are still available. Gemini has formed a creditor's committee and is working to recover the funds from genesis and the DCG, according to this report. In an effort to restore clients trust and calm fears of a contagious spread following FTX fall, Gemini announced its trust center on November 9th. Now, this is a dashboard showing metrics for funds held by Gemini and on the exchanges behalf. However, in the Twitter thread about the trust center, clients of the urn program stated that they would regain their trust once withdrawal earnings resumed. Geminis earned program was launched in the United States in 2021. And now operates in over 65 countries, including new places like Croatia, Cyprus, Czech Republic, Denmark, Hungary, et cetera. Now, staying with genesis here because they received a $1.15 billion investment from Alameda research. Over a 9 month period between August 2021 and April 2022. Now this investment was made before the recent downturn in crypto prices. This was revealed in documents disclosed by Bloomberg on December 3rd. The capital was deployed in four different installments of 100 million, 550 million, 250 million 250 million. The investment in genesis digital was among the venture decisions made by Alameda. It was also revealed that sbf acknowledged his role, his participation in this decision despite initially denying it to regulators. Now, genesis raised $556 million in two separate founding runs last year to fuel its growth plans. The funds were used to purchase 20,000 Bitcoin miners from Canaan to build a new data center in Texas and to expand its operations in the U.S. and Northern Europe. However, the mining industry has been struggling with rising energy costs and a bear market. A recent report from hashrate index showed the revenue earned by Bitcoin miners fell to a two year low of $11.67 million due to poor market performance. And increased computational demand. The ongoing crisis at FDX is expected to prolong the current crypto winner as investor confidence roads. A coinbase report shows that the stablecoin dominance has reached a new high of an 18%. This indicates that liquidity crisis may extend until the end of next year. In staying with Alameda research here, because it came out that they were given outsized borrowing limits compared to the other clients of FTX. This is according to sbf, and while he didn't specify how large these limits were compared to the other clients, he noted the possibility that they continued after FTX founding. The large borrowing limits reportedly stemmed from Alameda's role as a main provider of liquidity on FTX. SPF said quote, if you scroll back to 2019, when FTX was first started, at that point, Alameda was 45% of volume or something on the platform. It was basically a situation where if Alameda's account ran out of capacity to take on new positions, that would lead to risk issues for the platform because we didn't have enough liquidity providers. I think it had fairly large limits because of that. He said that by 2022, Alameda accounted for only 2% of the trading volume on FTX. He also said that Alameda's liabilities to FTX were about $10 billion at the time of its bankruptcy filing. This is the latest in a series of admissions that Sam bankman fried has made to the media since FTX filed for chapter 11 bankruptcy. On Wednesday, he told The New York Times that he quote messed up big and took responsibility for the lack of oversight that led to Alameda's research's risky positions with FTX. In an ABC News interview on Thursday, the former FTX CEO admitted that he didn't spend any time on risk management. And I think that's going to do it for us tonight. I want to thank you, my listeners, because when you stop listening, I will stop talking. We'll see you tomorrow night.

Gemini Kwan South Korea Terra genesis southern district court shin hyung judge hung yin pyo Terra associates Alameda terraform labs judge hung Martin shkreli digital currency group Bitcoin genesis digital
"alameda" Discussed on Unchained

Unchained

06:24 min | 2 months ago

"alameda" Discussed on Unchained

"Kraken is still around, I think maybe you are working at the right exchange. We'll see. It hasn't played out yet. Yeah, maybe just to add to what Jesse said, I actually read their margin docs and basically there was a couple of things that really stood out to me at FTX, which was there is a collateral weight factor, which was basically putting FTT at a 5% discount. So something that should have been like 95% discounted was 5% discounted. And on top of that, another very weird feature is that in their loan book in their lending pool, right? You can borrow all sorts of different assets, right? But you couldn't borrow FTT. And I think maybe that the reason for that is that they designed that on purpose because they didn't want people having a lot of FTT to short it, right? Like even when they started and they opened their books for FTT, they started with the spot market and it took up a lot of time and a lot of lobbying by their customers to introduce a perp book on FTT. If you guys remember, when it first launched, it was only a spot book. Well, you know, these days when they launched new tokens, they list the spot and the futures and the props at the same time. So why all this very strange treatment for FTT, which is different than everything else. And my thought is that there's a little bit of smoke there. Maybe it's fire, right? But certainly there's a lot of smoke there, suggesting that they knew exactly what they were doing. And they were like in a wonky financial engineering way, trying to create something that is hard to go down. Because they themselves held so much of it, and we're using it as collateral for so much debt. So they wanted us few shorters in the market as possible. And therefore, it wouldn't even lend it out. So I think those are all interesting tidbits. I'm now coming out. No single thing by itself is that suspicious. They're all like slightly suspicious, right? And then you add them all together in the entire picture looks kind of horrifying. Yeah, one last bit that just my jaw on the floor was in that vox piece. I don't know if you remember, you know, she kind of asks him, you know, about what happened with the money and then he says something like, oh yeah, you know, we had these accounting issues, like for instance, oh, FTX doesn't have a bank account. We'll just have customers send their money to Alameda. Three years later, whoops, all the money got sent to Alameda and we never put it in this dub account for FTX or something. And I was like, oh my God, and then other people started tweeting like, oh yeah, when I deposit my money on the bank slippage said Alameda and I was just like, wow, like customers were literally sending their money straight to Alameda. And so I just feel like it appears at least from that Twitter DM that they're literally was no separation, and that Alameda just kind of considered a customer funds their own funds to trade. That's how I read that. And my wrong or yeah, I think that's exactly what happened. Now that I'm thinking back, I think I remember that too, right? So somebody on Twitter posted, hey, look, here's the wire on structures for FTX OTC. And it clearly says on the name of the firm is Alameda. And I think that we actually have those same wire instructions. I think when we trade it with FTX OTC, we also had to wire money to Alameda OTC. So I think that this is like, these are some of the things where it's just like, you know, you really just can't be doing that, you know? Because it's not clear that in the backing, everything is being tracked correctly like this whole stub account issue. I'm sort of reminded of there have been other times with other exchanges where it's like, you know, just we've managed to catch money disappearing out of the account. And I'll give you one example, which is pretty bizarre. Which is that one of our counterparties was settling a trade with us. And we told them to settle it to I don't mention the name of the exchange. To this exchanges account. But instead of sending Bitcoin, instead of sending the tether to their tether address, they sent it to the Bitcoin address, right? So it's still recoverable because it was still Bitcoin based tether at the time. But we need the exchange to go and figure out how to retrieve the funds and then credit us. So the exchange charges some amount of money for doing that. And we noticed that they actually charged us twice because they just kind of forgot they didn't remember if they charge us or not. But they charge us twice. So I'm sure these kinds of things happen all the time. I remember doing a trade with Alameda, just like some of somebody has said on crypto Twitter, where they settled their leg of the trade, but forgot to remove money from our account. And we had to go ping them and say, oh, by the way, I think you guys forgot to take money out of her account. But trade settle on your side. So go feel free to do that. And then, oh, sorry, we forgot. So it was just a lot of that kind of sloppiness everywhere. And I'm even reminded of another anecdote where I was talking with basically one of the employees at FTX and I was asking him, you know, because the person was looking around for vehicles to invest in. And I'm like, but wait, you guys have, don't you guys have a really profitable prop shop? Like, why don't you just invest in all of them? You work there. You work at FTX. Why don't you just invest there? And he's like, well, Sam won't let us. And I'm like, well, why is that the case? Well, he says, well, it's just really messy because all the bookkeeping and stuff. It's just very hard to say exactly what the right marks are and what exactly the PML is. At any time. So right now it's just like it's just Sam's money. As I remembering all of this, I feel like the writing was on the wall, right? But it's just like each of these instances are just so far apart from each other. And each one not suspicious enough by themselves. But I think there's tons of instances like that. Jesse, do you want to add anything on that? The using of other bank accounts is something that something changes have done quadric I did it extensively. And I think in part, it's a problem for the industry that it's very hard, or at least historically was very hard to get bank accounts. It's gotten easier over time, and I think these days, if you're a legit crypto company, you can

Alameda kraken Jesse Twitter Sam
"alameda" Discussed on Unchained

Unchained

03:15 min | 2 months ago

"alameda" Discussed on Unchained

"Today, we have a conversation between an exchange owner and an institutional trader who are going to be discussing the collapse of FTX. Here to discuss our Jesse Powell, cofounder of kraken, which disclosure is a former sponsor of the show and Kevin so, cofounder of galois capital. Welcome Kevin and Jesse. Hey, thanks for having us. Yeah, thanks for having us. The crypto industry has been absolutely rocked by the seemingly never ending saga of FTX, which every day seems to reveal even deeper levels of incompetence, malfeasance, perhaps fraud, Jesse, since you're an exchange owner, I wanted to get your opinion on what exactly happened here. What do you think the root of the issue was? Yeah, I think these guys, first of all, didn't really know what they were doing when it came to running what should be like a Fort Knox type of operation. I think they were traders. First and foremost, I think they are very inexperienced operators. And they took on a lot. I think a huge amount of work for the number of people that they had on the team, you know, like our whole security team is like a hundred plus people and they were doing what the whole company is doing with like 50 people at one point. So they wouldn't have been able to do all the things that you would normally do and build. And from the outside, we figured that this was going to catch up with them at some point. That they were accumulating a lot of technical debt. We didn't anticipate that it was as bad as it is. It seems like they hadn't done any kind of accounting or reconciliation in like three, three years, and that they basically had no controls in place and very few people knew what was actually going on there. Yeah, and Kevin, what about you? I know you're approaching more from the trader perspective, but I was interested to hear what you thought the core problem was. Yeah, no, I definitely agree with Jesse. And actually, you know, before starting the firm, I used to work two years each at two different exchanges. One of them being kraken. So I'm pretty familiar with some of the operations that go on within exchanges. And like Jesse said, there's a lot that goes into it. And with a small team, it's very difficult to run because there's so many different divisions. It's a full fledged business, right? If you look at a trading operation, I mean, you don't have to do any marketing. There's very little BD. There's not too much legal overhead. There's a lot of these divisions that aren't fully fledged, but in exchange the full fledged business. So you have all these different divisions. And then I think on top of that, some of these guys from FTX from Alameda, they were coming in from the tried 5 world. And they weren't super crypto native at the time. And there were a lot of lessons I think that were learned in history, you know, everything from like gawk to bitfinex. To some extent, like Bitcoin. I mean, there are so many lessons along the way, crypt C with big vern. All of these pieces of history that I think folks that had lived through it really internalized and folks that just came by later. They knew about it. They understood intellectually, but they hadn't gone through the experience, the harrowing experience of what it was like to see collapse or all of these major hacks or exploits happen

Jesse Powell gawa capital kraken Bahamas Sam coins U.S. Kevin Alameda Jesse
"alameda" Discussed on Unchained

Unchained

06:16 min | 2 months ago

"alameda" Discussed on Unchained

"Or with the FTX was that they'd had a very small security team apparently, which that's a red flag for an exchange, which makes a lot of sense. So Brian Armstrong, you know, for all the criticism he's got. He has a completely different personality from Sam. I don't think he's a traitor. He's definitely more like a builder and coder. And just other people with that kind of mindset around security and whatnot, like that's those are the people who should be running centralized exchanges. Yeah, I think we talked about this a little bit last show, but the Jesse's and Brian's of the world who started these companies well before anyone thought this industry would turn into anything and really believed in the ethos, believe in the promise of the technology, I don't think they would have done something like this because obviously it's just so harmful to the industry overall. Whereas you have opportunists who come in, see if there's a great way to make money. And I think that does sort of cloud your judgment. Maybe not explicitly. Maybe there's not a literal thought around the ends justifying the means. But I think certainly it speaks to your overall incentives. Well, so I want to wrap the show with just a reflection of like, okay, we're here now. This is one of the most catastrophic failures of the last 5 years in crypto, is the downfall of FTX and it seems like the more we learn the worse it becomes. It's clear that this is going to set the industry back. So the question that I want to leave with is just what do you think happens from here? What is the next 6 months was the next year look like as we recover from this? You know, I actually want to equivalent with your statement. I don't know if I would say that it will definitely set the industry back at least on a long enough time scale because I actually think it's so good for the industry, just based on all the principles that I hear from crypto people around what they're trying to build and how they want to use this technology to change society. I actually think it's so good to get those kinds of people and those kinds of practices or whatever you want to call them. Out and have people recognize this is not how we do things. Sooner rather than later. And so I understand that maybe not regulators and lawmakers will understand that right in the beginning, but I imagine that the community members will kind of double down on more decentralized things on self custody on just like all the sort of really core principles. And so in that regard, I actually feel like this could kind of hasten the more pure version of crypto than kind of the way the industry was going the last two years. Yeah, I mean, I want to be optimistic here. And I agree maybe in the long run, you have maybe this is a step forward, but I feel like we always say this after every exchange hack and people have been trying to push not your coins and not your keys at your coins forever and humans just kind of keep doing the same thing they've always been doing. So I would like to believe that you're right, but I'm also somewhat maybe a little bit pessimistic, but I think it's just going to be very chilly for a while. Like this asset class just looks so toxic to a lot of people who aren't already working in it. And I think people who pushed these investments at their more traditional crossover funds or VC funds look extremely silly now. And I think on a long enough time frame, things will heal the technologies, new technologies will be built and hopefully things will look better. But in the short term, it's just hard to see how people get excited about underwriting investments in crypto if they're not already in it. And even if they aren't in it, rethinking the strategy true, what would you say? I mean, what I said on Twitter the other day. The first place that liquidated the Alameda paid back, we were DeFi protocols. And DeFi protocols due to active participants who care about not being fucking stupid like centralized lenders who deserve to die. You know, we spend a lot of time actually trying to understand what risks these things these protocols are taking and how much leverage they're actually giving people. And the fact that an actor had to go pay back the smart contract first. Instead of relying on sweetheart deals with their own exchange. Is the ultimate sign that crypto's technology is the right technology in the future. And between ZK and really the sickness related projects and snark land and DeFi I still am. I actually think the death of this type of stuff is actually very good for increasing the level of development in those technologies because people see them as necessary, not just sufficient or nice to have them. So to me, that's the taking. That will take away. Yeah, I'll definitely plus one to that to ruin. It's clear there's going to be a big regulatory backlash as a result of FTX because there were so many of the rich and famous who were caught up in this thing. This was not just some run of the mill kind of overseas random exchange that ended up stealing people's money. This was something much bigger. And it makes a lot of people look stupid and it makes a lot of people think, okay, if I couldn't trust FTX, who can I trust? That violation of trust is going to be very hard to overcome. I think we will eventually overcome it, but it's going to take time. It's going to take a lot of work on behalf of not just centralized players, but everybody in the industry of showing that we are up to the task of creating products and creating an industry that people feel comfortable with. And the reality is that we talk obviously about DeFi a lot in the show. And we're big believers in DeFi. But for most people, DeFi is still too complex. It's still too difficult. It's still beyond the pale of what they can realistically use and stay secure interacting with. And so there's a lot of work to do. And so what I see is that the next year is likely going to be quiet. We're still going to be funding great entrepreneurs who are working on new ideas and building new things. And I think capital will be there for folks who have genuine ideas about how to move the space forward. But I think consumers are going to be pretty gun shy for a while. Eventually we'll get past this hump because crypto crypto is resilient.

FTX Brian Armstrong Jesse Sam Brian Alameda Twitter
"alameda" Discussed on Unchained

Unchained

04:44 min | 2 months ago

"alameda" Discussed on Unchained

"It was all these like random investors who didn't really know what the hell they were doing that were investing to theranos and believed the story. That is a place where I think the media was more liable because the media built up this narrative that allowed all these much less sophisticated investors coming into the fray. In Sam's case, it was a way at all. And Sam's case was very specific about who got bamboo. One thing I just want to, you know, at one point I just want to make is that we're seeing the media, but it was also the media that exposed Elizabeth Holmes. You know, John Kerry wrote the journal. And even before then, Ken alle in The New Yorker. So I mean, just any reporter will tell you, when you approach a story, sometimes it's like, okay, I got to write a thousand words and whatever, and then you're only going to spend whatever, you know, a day or two or something. And then other times it's like, okay, I have 8000 words. I'm going to spend 6 weeks, two months or whatever. So when we say the media, yeah, it's just like, I'm not going to blame somebody who literally spent two days writing about theranos or Sam or whatever. And again, I'm not claiming that individual people in the responsible for writing things about Elizabeth Holmes. But the reality is that in the valley, people were broadly skeptical of theranos for a long time as that company was continuing to get funded. That wasn't true for FDA. There weren't people hanging around saying, hey, I think this thing is a fraud. You're absolutely right that, okay, the coin desk leads to the balance sheet of Alameda. But again, that had nothing to do with fraud. It was just that, okay, Alameda is over leveraged, right? That was what that told people. And then CZ announced that he was going to sell a bunch of FTT. And again, even CZ almost certainly did not think that Sam had lent out customer funds to Ella maida, otherwise he probably would not have done that because he ended up knocking down the entire industry and setting us back by so long by revealing this massive fraud, right? He probably did not want to do that. And so I think what really happened was that the thing just unraveled. And obviously this leak of Alan made his balance she has something to do with it. But it was just that the lie got too big. That's what caused this thing to unravel. It was not any single person or any single insight from anyone that causes things to unravel. It was just this kind of perfect storm that caused the whole thing to come crumbling down. If Sam had successfully raised 4 billion in that midnight on Monday, then maybe we wouldn't be talking about this. Maybe we would still be walking around, assuming that FTX was still perfectly fine. I think I would disagree with that for a couple of reasons. One is there was sort of like clear sort of accounting fraud like attributes to most of the revealed balance sheet. I think if we really mark to market liquidity adjusted almost all the assets, like they're down much more than what is stated. And the way that I think it was being represented to people that were trying to fundraise from was that we owned everything was marked to the FPV value. And I think there's a lot of Alameda. But even for FTX, 'cause think about the serum portion of the balance sheet. I mean, they were marking that to $2.1 billion. There was no way that was worth $2.1 billion. But the coindesk article was not super deep, right? 'cause they also mentioned that, hey, we're discounting stuff that is illiquid, they alluded to that fact. They didn't talk about what's liabilities consisted of, the liabilities that I'm saying, let's look at the balance sheet that we've seen now. Yeah, the balance sheet now, I totally agree with you. If you go backwards in hindsight, that $4 billion he would have raised would have just gone to propping up that balance sheet to try to even get it back to the level. Just to be clear, I'm not saying that it wouldn't eventually have unwound, right? If you are $8 billion in the hole, it's going to fall through at some point. Right. It may be later, but there's no way you're going to make back $4 billion of cash to pay back your customers eventually, right? I mean, they made 400 million last year in net profit, which was one of the most legendary years for crypto trading ever. So I completely agree with you. It would eventually unwound. But we wouldn't have heard about it now. We would still be walking around thinking that FTX was fine. I don't think that would have been totally true because even if the bailout succeeded, there was already this notion that there was some trouble on the balance sheet that you already had to have this thing happen and eventually that would basically force people to want much more tight accounting. And I think at that point you would have found it. It was effectively accounting fraud. Very similar to enron. I actually, all the people are comparing this to Lehman, I don't think that's an apt comparison. I think enron had a lot of weird securities that they also marked in bizarro ways. And that they're auditor was kind of stupid to understand. And FTX basically an Alameda treated all these centralized lenders as the idiot auditor,

Elizabeth Holmes Sam Ken alle Alameda theranos Ella maida John Kerry The New Yorker the journal FDA Alan enron Lehman
"alameda" Discussed on Bitcoin Audible

Bitcoin Audible

03:32 min | 2 months ago

"alameda" Discussed on Bitcoin Audible

"On Tuesday morning, FTX appeared to find the white knight it severely needed. Although it would come in a form that no one expected. Binance. The non binding deal was still subject to binance's due diligence, as it appears to have been consummated via a phone call in little else. Still, despite the news, the price of FTT began to freefall from nearly $20 following the news of the acquisition to $3 by mid afternoon. It seems as if investors either didn't trust the deal to close, or didn't know how FTT would be treated in the event of the acquisition. By Wednesday afternoon the deal crumbled as binance announced that it would not pursue a potential acquisition of FTX. Reports in the media suggested that FTX was searching to raise $8 billion in capital from new investors to replenish customer funds. If it were unable to do so, it might file for bankruptcy, concluding one of the swiftest and darkest moments in crypto's history. Root causes and knock on effects. From the information available, it is unclear what specifically calls the catastrophic collapse of FTX in such a short period. The proximate cause was the $6 billion in redemptions requested by depositors in 72 hours. But the fact that FTX couldn't redeem depositors in full indicates they had done something else with customer deposits. According to a recent Reuters article, $4 billion of customer deposits were lent out to Alameda, following losses sustained in the market volatility of second quarter. The collateral posted by Alameda for borrowing in part consisted of FTT tokens, which evaporated in value, meaning FTX could have taken significant losses on its loans to Alameda. Making matters worse, if FTX called the FTT tokens posted as collateral by Alameda and sold them in the market to close out its loan, it would further push down the price of FTT. Exactly what it did not want. This series of events highlights precisely why you need exogenous capital, an error that echoes from the lunar U.S. T fiasco a few months back. A system is vulnerable to a circular reference death spiral like this one when the capital base is entirely reliant on the system itself. The industry is presently in a state of high alert. Like in the aftermath, the lunar UST collapse, investors were keenly attuned to other counterparty risks that may arise because of the collapse of FTX. Galaxy digital, $77 million, coin shares, $30 million, coinbase, $15 million. Genesis trading $7 million in multi coin, 10% of its master fund, all have disclosed exposure to Alameda or FTX. It appears that genesis had credit exposure to Alameda, while the other entities had trading balances stuck in the FTX exchange. It is unknown who else might be affected because of this washout, but it might just be narrowly contained to FTX, individuals and institutions with deposits on FTX, Alameda, and whoever else lent to Alameda. One of the unfortunate knock on effects may be that the lifelines extended to BlockFi by FTX and Voyager by Alameda may be in trouble. Although we have heard no updates, we can confirm that neide has no

Alameda Binance binance FTX Galaxy digital Reuters genesis U.S.
"alameda" Discussed on Bitcoin Audible

Bitcoin Audible

02:49 min | 2 months ago

"alameda" Discussed on Bitcoin Audible

"But it seems as if CZ had already made up his mind, having already transferred 23 million FTT tokens to binance for sale, even before he tweeted his intention to sell. CZ would take to social media a few hours later and clarify the move with FTT as part of their risk management process, and in reflection of their experience with the Luna fiasco. Binance was an early investor in Luna, and owned the token from its highs to its demise, without selling. Binance didn't intend to make the same mistake with FTT. Within CZ's text were some words that stoked concerns about binance's true motivations. Quote, but we won't support people who lobby against other industry players behind their backs. Which made the move to sell FTT seem like this was a bomb lobbed at a competitor rather than risk management. Outsiders can only speculate what has been going on behind closed doors. But based on this text, it seems like binance was unhappy about how it was being portrayed to regulators or legislators by FTX. FTT crashes, FTX slows withdrawals. Even amidst a potential wave of market sales coming from binance, the price of FTT had held above the $22 level through Sunday and into Monday evening. Perhaps until then, Alameda had been standing on the bid side, making good on its offer to buy FTT at $22. But clearly, at about 9 30 p.m. eastern Monday evening, something changed, and the price of FTT began to fall rapidly. Given the size of FTT, $3 billion in free float market cap, much of which was already owned by Alameda, in comparison to Alameda's supposed balance sheet of over $24 billion, it is a surprise that the prop firm could not buy the entire supply of FTT trading. How such a small asset took down such a supposedly large enterprise remains one of the many mysteries of this event. Several hours later, at about 3 a.m. eastern on Tuesday morning, FTX wallet address began to dramatically slow withdrawals, according to blockchain data. Reports began to trickle in from social media shortly after that, regarding the halting of withdrawals. According to tweets from SPF after the fact, FTX processed $5 billion worth of withdrawals, beginning on Sunday. It appears as though the balance sheet scare at Alameda resulted in a run on the bank at FTX, and it was unable to satisfy client demands. Binance steps in, then steps away.

binance Binance Alameda Luna blockchain FTX
"alameda" Discussed on Bitcoin Audible

Bitcoin Audible

03:23 min | 2 months ago

"alameda" Discussed on Bitcoin Audible

"Its VC investments and support for Solana and its ecosystem. The coin desk article highlighted the perhaps too close relationship between Alameda and FTX. Something that was frequently suspected in the crypto industry. The heavy concentration in FTT also casts doubt on Alameda's financial position. While all the details of the balance sheet weren't disclosed, we have done our best to recreate the balance sheet from the details disclosed in the article, also noting that it is now over four months old. Our calculations show that at the time Alameda was not heavily indebted on a debt to equity basis. But 5.8 billion of its assets nearly 90% of its equity value were tied to its ownership of FTT. Alameda CEO Caroline Ellison tweeted that the details outlined by coindesk were just for one of their corporate entities and did not account for over $10 billion of assets held elsewhere. It is unclear to us what or where those assets are, but given the swiftness of allied as an FTX is collapses, perhaps those assets were inaccessible for liquidity reasons. Like mini tokens issued by exchanges, the largest of which is binance's B and B, FTT can be posted as collateral for trading services, unlock discount trading services for holders of a certain size, and capture revenue from FTX trading fees through a burn mechanism. But it is important to understand the value of FTT is entirely based on its issuer, FTX. The fact that Alameda owns 73% of the supply of FTT based on our best guess at total supply, at the time, shows how closely tied Alameda and FTX were. Sam bankman and his cache of companies were well known as being supporters of Solana, and its ecosystem. It is no surprise then that Alameda owned a large position in Seoul, though the position was smaller in size, both in terms of dollars and in terms of the outstanding supply of soul compared to its FTT position. Given the connection to SPF and cell pressure on Seoul, souls precipitous drop of over 60% since Friday has not been surprising. Binance makes moves on FTT tokens. Following the balance sheet leak on Sunday morning, Chiang Peng zhao, or CZ, binance's founder and CEO, posted a tweet that would eventually result in the downfall of FTT. And with it, FTX and Alameda. The tweet said that binance owned $2.1 billion worth of FTT and binance USD in connection with an early investment in FTX, and that it would be liquidating that position. Before the tweet, FTT had been trading at about $24, but dropped sharply to 21 50 on the news before recovering to 23. In one of the more distressing communications of the entire episode, in addition to SBS now deleted tweets that everything at FTX was fine, Alameda CEO Caroline Ellison responded 15 minutes later to CZ's tweet, offering to buy his entire FTT position out at $22.

Alameda binance FTX Caroline Ellison Solana coindesk Sam bankman Seoul Chiang Peng zhao SBS
"alameda" Discussed on Crypto Critics' Corner

Crypto Critics' Corner

03:30 min | 2 months ago

"alameda" Discussed on Crypto Critics' Corner

"They were all offering they were saying, sure, we'll market make for you if you give us 20% equity. If you give us 30% equity, like absurd numbers of obscene numbers for a completely illiquid company, like you're banking on something going awfully right situations. And I think he ended up not using them because he didn't trust those numbers. He thought they were insane, but this is not new. This shouldn't surprise I think people who have been we don't trade. We don't talk to these chop shops and trading firms. Like, that's not, we don't do that. But plenty of people in the industry do, and I don't think they're that surprised by this, to be quite honest with you. I think that this and three arrows capital were both pretty surprising. If you had asked people two weeks before they ended up happening. Three AC was, I think, I think that did surprise people because I think they made themselves sound so smart that everyone in the industry actually believed it. I think this, if you're trading and you're asking questions and you're following stuff on chain, you should have questions about FTX and Alameda. This shouldn't be a 100% surprise. I think this is the discussion has been going on for over a week now. And if anyone was just utterly shocked by this, they weren't paying any attention. Well, sure. But two weeks ago, two weeks ago, if you took a poll of like large traders, other hedge funds, other trading firms, and said, do you believe that in three weeks, FTX will be sold to another exchange because they'll have, they won't have sufficient liquidity to cover their withdrawals. Sure. Most people would say, no, of course not after X is one of the best exchanges. And so even if there is still an undercurrent of anyone can fail at any time in cryptocurrency, I don't think anyone was really expecting to be the next exchange to fail. And especially since it's funny when Sam a couple months ago was saying some exchanges are secretly insolvent already, and that if we end up growing as we're growing, we could buy Goldman Sachs. Okay, Sam. Yeah, well, and I pointed this out a few days ago. I said, there is a difference between insolvency and bankruptcy. And that is true. I want I'm not backtracking that, but someone said, well, that's true, but you can't be insolvent for very long. The longer you're insolvent, the likelihood of your bankruptcy goes up, exponentially. And I think we're seeing that play out today. That is exactly what happened, and they were right. Though there is a difference between insolvency, which means you don't have enough assets to cover your liabilities. If that doesn't change somehow, then

Alameda Sam Goldman Sachs
"alameda" Discussed on Crypto Critics' Corner

Crypto Critics' Corner

03:30 min | 2 months ago

"alameda" Discussed on Crypto Critics' Corner

"Three times. So initially, I would say, I don't know. Most skeptics and critics probably weren't huge fans of the so called supercycle theory proposed by three arrows capital, which was this. Did you see he's back? He tweeted again. He's fucking tweeting. What the fuck? Everybody. Yeah, well, I mean, what does he have to fear? Who knows where he is? He's either in Switzerland or UAE. I mean, he's fine. Anyway, I think not many critics and skeptics believed the so called supercycle, which for anyone that's not familiar, good, good. I'm happy for you. But the concept was more or less just like, it's like it's like the stock to flow. It can only go up. Bitcoin can only go up. It can never go down, that we're entering the new supercycle. I think their prediction was a hundred K and so that was baloney, critics and skeptics were calling it out as baloney years ago. And then we have Doc one saying that his algorithmic stablecoin, you know, through sophisticated language, do Kwan basically just fool people into thinking that he created a perpetual motion machine. And lo and behold, critics and skeptics said that's bullshit and it failed. And now, a lot of critics and skeptics and others calling out SPF, calling out these exchanges, and for a long time, this is not new. Like calling these guys out for trading against customers, saying, it sure does seem like FTX and Alameda are super close and tight, and that's weird. And other criticisms. And have been told how stupid we are, have been told, well, these guys are super rich. You guys are fucking dumb. You guys don't have money like they do. You're just, you're just talking. You're just commentators. Sorry, just pausing for a moment. And just to be clear, there's Alameda research, which is a cryptocurrency market maker quantitative trading in venture capital fund. There's also FTX ventures, which also supposedly operates independently, FTX, FTX U.S., now binance binance U.S., the rest of binance subsidiaries across a bunch of other countries, binance ventures, binance labs. The conflicts of interests are so blatant and so obvious, and like we've talked about it before with tether as well. Juan Carlo da vicini and sylvana de Stefano the CFO and CIO of tether respectively are partners in a cryptocurrency hedge fund, blue bit capital, JL Vanderbilt, the CEO of both bitfinex and tether is the executive director of a Hong Kong based venture capital firm, all of these idiots are conflicted. All of these idiots are trading against you all of these idiots are trying to take advantage of you idiots. Not you idiots are audience. The idiots in cryptocurrency, the people listening to us are unique and smart. I also want to say, I don't want to give credit to the person because I don't know if he would be comfortable with it, but we had a friend of ours reach out to us a while ago. And suggests that market makers and Alameda and other people were basically insolvent insofar as they were taking equity in a bunch of low cap illiquid garbage. And he was telling us, like if anything happens, there's going to be serious issues with their liquidity. I think this was two years ago, something like that, two, three years ago, and again, I'm not going to name him, but this is somebody who is familiar with trading firms. Was interacting with them, trying to get market makers to work with the company he was working for.

Bitcoin Alameda research FTX ventures binance ventures UAE binance labs Kwan Alameda Juan Carlo da vicini sylvana de Stefano Switzerland blue bit capital JL Vanderbilt bitfinex Doc U.S. venture capital firm tether Hong Kong
"alameda" Discussed on Crypto Critics' Corner

Crypto Critics' Corner

03:09 min | 2 months ago

"alameda" Discussed on Crypto Critics' Corner

"I do think that the type of customers FTX has the name recognition FTX has in the U.S. because of all of their advertising. Not the same. Not the same. FTX plus not the same as FTX. That is what that is specifically what SPF said in that tweet thread that FTX that again, who knows how true any of this is, who knows what ends up happening. But my broader point is I think the customer relationships with FTX international, which is way larger than FTX. And that customer data that FTX has will be valuable enough to CZ that he will eventually get some kind of deal through. But he has backed up before he backed out on the Forbes deal after making a big deal out of that. So we'll see. I think the question really becomes, will it hurt him more to take over FTX or hurt him more to pass on this deal? That is all that it really, that's all this really amounts to. He's deciding how hard he would get hurt if he passed on this deal and let it just die. Because it would absolutely, these are all systemic risks we're talking about. This is not a new term for us. We've been talking about systemic risk for a long time. We've talked about how these exchanges failing is a serious, it's a serious black swan event. This is not, this doesn't mean like, oh, okay, well, it'll be a day, everything will be back on track tomorrow, like the fact FTX was likely using customer funds to fund Alameda, this is no joke. This is no joke, and it's going to have serious ramifications. You're absolutely right. And one of those serious ramifications that I think is worth drawing attention to is the fact that Sam bankman fried was the second largest Biden donor, was like the second largest donor in the democratic primaries, and has been so active on Capitol Hill, pushing really poorly thought through legislation, advancing poorly thought to candidates, doing a whole bunch of poorly thought through things, but his face has been one of the most recognizable and has become one of the most trusted. In D.C.. And suddenly, all of those relationships, everyone in D.C. who had started to become convinced by SPF that perhaps crypto did deserve some regulatory consideration, some additional space is now going to look at it and go, oh, that was purchased by the CZ guy. The guy we're investigating for violating sanctions. The guy we're investigating for. That's a little uncomfortable. And wait, this is the guy who purchased all those lending platforms and tried to purchase all those lending platforms that were failing and hurting people. That's not great. So I think that crypto lobbyists and crypto efforts in D.C. just reached a serious wall that they were not expecting as one of the most scrutinized entities in crypto by regulators binance is now purchasing what was previously one of the more trusted and legitimate entities in the United States cryptocurrency space. Yeah, there's a couple things I want to touch on there. But the first one, and I think you'll you might have something to say about this because we've discussed it before.

FTX international Sam bankman Forbes D.C. U.S. Alameda Biden Capitol Hill binance
"alameda" Discussed on Crypto Critics' Corner

Crypto Critics' Corner

05:34 min | 2 months ago

"alameda" Discussed on Crypto Critics' Corner

"And I think there is reason to be suspicious of that today. But coindesk published this excellent report going over some of Alameda's balance sheet, Carolyn Ellis and the CEO of Alameda research tweeted out that was only part of our balance sheet. We've got a bunch of secret hedges. You can't see and also $10 billion in assets that also you can't see. And also we've repaid a bunch of those loans and we can't show them to you. And so, and then Sam came out and said, kind of a similar thing where he went, FTX isn't insolvent, which is when everyone went. Everyone was talking about Alameda Sam, why are you bringing up FTX? And then he goes, FTX is the most profitable exchange per employee you will ever find. And we have gap audits. We have generally accepted accounting on accounting practices on it with $1 million in cash, is what he claimed just a couple days ago. And again, you're skipping one pivotal tweet, which I think is super important is Carolyn Ellison said basically trying to replicate there's a famous cryptocurrency Twitter. Oh, is that after this? Yes. Okay, so after this, after what you just discussed, Carolyn Allison, in what I assume was essentially a shitpost. We don't know. But a while ago, Sam, some trader was saying Solana is going to, I think it was to $3 or was going to go to nothing. I was going to go to zero. And Sam said something along the lines of all by all the Solana you have right now for $3. This was when it was below $3. Ultimately, Solana went away. I think it's still trading far above that. But regardless, Sam basically completely destroyed this guy's argument saying, I'll just buy it from you right now, and then you'll feel bad. And it seemed like Carolyn was doing something similar where she said, in response to CZ saying, I'm going to sell, I'm going to sell, I'm going to unwind months of liquidity. Months worth of liquidity is how he specified it. He said he can't unwind this position for months, which by the way, if you actually are trying to unwind this position, you do not tell publicly that it's going to take you months to unwind your liquid position. You don't do that. Period. So I think CZ was definitely seizing the moment and trying to cause a run. And it worked and in response, Carolyn Carolyn said, I'll buy all the FTT you have right now for $22. Unfortunately, that it didn't work the way it worked when Sam said it about Solana. And set it to a random trader. Carolyn was saying this to or Caroline Caroline.

coindesk Carolyn Ellis Alameda research Sam Alameda Sam Solana Carolyn Ellison Carolyn Allison Alameda Twitter Carolyn Carolyn Carolyn Caroline Caroline
"alameda" Discussed on Crypto Critics' Corner

Crypto Critics' Corner

04:50 min | 2 months ago

"alameda" Discussed on Crypto Critics' Corner

"I'm doing, I'm doing well. I woke up to a shitstorm. I think it has been an insane, an insane two days, an insane, one day an insane week. I don't even really know how to express how crazy this has all been. It's been really, really like an absurd, like, three to four days. It was the weekend, the weekend broke everything. Yeah, let's go ahead and get started. Obviously, we are talking about FTX Alameda. As I've stated, we didn't get a chance to we recorded an episode on this. We didn't get a chance to put it out there. Because this all unraveled too fast. But we previously were talking about this and I specifically said, FTX and Alameda are the same company as far as I'm concerned. They are not separate. I know that this is a buyout from binance. We're talking about a buyout from binance for FTX. That is not Alameda, Alameda is a separate company. But let's get into let's get into the weeds here. So what's happening? Well, let's go back to the beginning. The thing we already recorded in episode on last week that I haven't been able to edit yet because now everything's collapsing, which is that element of research, the Sam bankman freed founded quantitative trading venture capital and market making crypto investment fund. Had part of their balance sheet end up in the hands of coin desk, who ran a report that showed that a huge portion of the assets on element of research is balance sheet where FTX token. And that not only that, but the amount of FTX token on their balance sheet. They were valuing at a 130% of what coin market kept had as the market cap for all of FTX token. So not only did they have their balance sheet dominated by this one asset, which is from this exchange founded by their cofounder, like it was also overvalued. They thought their supply was worth more than the rest of all worth more than all of FTX token in existence, which is an absurd place to be it. The other thing it revealed that was that as of June 30th, Alameda research had about $7.4 billion in loans out and that much of their other assets was also relatively illiquid. They had $2 billion in equity securities of unknown liquidity and like a $100 million in cash and cash equivalents, along with $3 billion of crypto held, which was broken out from the FTT because FTX token obviously isn't crypto. It's a security. Wait. But continuing on. Yeah, so this report came out last week. And then things got gradually worse. CZ announced that binance was going to be selling their supply of FTX.

Alameda Sam bankman Alameda research binance