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Re: Cryptocurrencies - intelligent commentary
Originally Posted by
fastupslowdown
That chart is way above my pay-grade, but the wsj wrote this:
Crypto exchange FTX lent billions of dollars worth of customer assets to fund risky bets by its affiliated trading firm, Alameda Research, setting the stage for the exchange’s implosion, a person familiar with the matter said.
But this does not tell you which FTX legal entity lent what customer assets from what type of accounts to which Alameda Research Legal entity and where did the funds go.
What WSJ wrote is fine, it just doesn't really have any informational value..
I think a lot of naive customers had no idea what they actually signed up for. And more importanly, SBF may not have understood fully the implications of what he was doing.
Now that you are in bankruptcy, legal entity details and jurisdictions really matter.
For example, right after Lehman went Bankrupt, Bob Diamond, the CEO of Barclays bought the Broker Dealer in NY. Why? Because he knew the broker dealer held all the cash collateral for the firm (Lehman Brothers Holdco). I think he made like 3.5 billion that day because people didn't think about legal entities. Barclays liquidated all assets to just take the cash.
Read the FT article above.
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