This came hours after over $600 million in crypto left bankrupt crypto company FTX’s wallets late Friday, with little clear explanation as to why. Many FTX wallet holders also reported that they were seeing $0 balances in their FTX.com and FTX US wallets.
We might need to move to the next stage of our model.
Think of SBF as being the “Do you sincerely want to be rich?” guy – Bernie Cornfeld. There was a time that IOS was all legal, an end run around regulation. That then deteriorated and eventually, because of insider investing – the cash being lent into insiders’ bad adventures and lost – it failed and fell. At which point step up Robert Vesco, who then looted the rubble.
We might well be at stage three here……although who is behind stage 3 is as yet unknown:
New York, Nov 11 (Reuters) – At least $1 billion of customer funds have vanished from collapsed crypto exchange FTX, according to two people familiar with the matter.
The exchange’s founder Sam Bankman-Fried secretly transferred $10 billion of customer funds from FTX to Bankman-Fried’s trading company Alameda Research, the people told Reuters.
A large portion of that total has since disappeared, they said. One source put the missing amount at about $1.7 billion. The other said the gap was between $1 billion and $2 billion.
Missing or lost?
Yes, there is a difference here. Lost, in this sense, means legal deal that was a money losing position. Missing means where in buggery is it?
They said the “backdoor” allowed Bankman-Fried to execute commands that could alter the company’s financial records without alerting other people, including external auditors. This set-up meant that the movement of the $10 billion in funds to Alameda did not trigger internal compliance or accounting red flags at FTX, they said.