You can come back anyway

Apparently shaking at points as he spoke by video link from the Bahamas, Mr Bankman-Fried said he hoped to one day return to the US despite a criminal investigation into what happened.

It’s not like the Bajans won’t deport you on an extradition warrant anyway…..

FTX’s bankruptcy is expected to be one of the most complex on record with an estimated one million individual creditors.

I’m not wholly sure that’s true. Given the very nature of the blockchain then most – if not all – transactions can be traced. At which point the entire trading record of the past 5 years can be reconstructed. Then it’s just a matter of running the model again to see where the leaks are.

OK, “just” is a bit strong there. But it is something that’s possible to do. Simply because blockchain.

13 thoughts on “You can come back anyway”

  1. Will it really be more complex than the Lehman debacle? That is still ongoing as a Lehman bond that was part of my wife’s portfolio is still getting a few dollars coming back occasionally. I’m surprised that wasn’t wrapped up years ago.

  2. There are ways though, to anonymise, and to obfuscate the blockchain. It isn’t nearly as foolproof as claimed.

  3. Allthegoodnamesaretaken

    If you think block chain will answer the questions I’ve got a brand new crypto currency to sell you.

  4. FTX was what we crypto nerds call a centralised exchange, just like any conventional stockexchange. It was a trusted third party and the anthesis of what crypto is about. It was not built on the blockchain.

    Recent events have shown that trad-fi businesses without regulation steal customers money. Quelle surprise.

    Blockchain based exchanges do exist and will become increasingly important as technology improves and costs fall.

  5. allthegoodnamesaretaken

    “FTX was what we crypto nerds call a centralised exchange”

    And what the rest of the world called a massive scam

  6. It’s a bit like asking “Which part of this sautéed turd do you think is tastiest”.

    Ignore the crypto aspects and it’s just a good, old-fashioned bank fraud. Sam Bankster-Fraud syphoned off “money” from customer accounts for his own use.

    Sure, he was pouring that money into high risk/high reward schemes to plug the hole in his accounts, but that’s not really much different from Nick Leeson and Barings Bank, forever doubling-down to try and make up for his losses.

  7. Then it’s just a matter of running the model again to see where the leaks are.

    That’s about as likely to happen as Jeffrey Epstein’s flight manifests being released.

  8. If he’s in the Bahamas, how could the Bajans deport him from Barbados, which is where Bajans come from? If you’re going to show off your street cred, it’s a good move to have some.

  9. I thought that the blockchain allowed you to see the bitcoins moving, but not who moved them or who now ‘owns’ them? So just because you can see that a single bitcoin have gone from the FTX wallet to XYZ wallet, there’s no way to get them back because the control of XYZ wallet is unknown. I suppose the knowledge that they come from a fraud then taints them – who would want to accept £20 notes if they had their own public blockchain of transactions and you could see if they had been stolen at some point? But then again, how many people would actually check the entire blockchain of a bitcoin before either buying it or accepting it for goods?

  10. “I thought that the blockchain allowed you to see the bitcoins moving, but not who moved them or who now ‘owns’ them?”

    You can if the wallet they’re in/have been in isn’t anonymous. Or obfuscated. Or…

    Because remember.. While Crypto officially has “no value”, the taxman is more than happy to pretend it does..

  11. Because remember.. While Crypto officially has “no value”, the taxman is more than happy to pretend it does..

    Not really the issue. While I agree that Crypto is worthless, HMRC/IRS et al are quite right to tax realised gains from it. Even if both buyer and seller are idiots, the seller is making real monetary gains.

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