It’s like saying we stole your stock, and then it went up, so now we can afford to pay back what your shares used to be worth. No you cannot have the shares back, only their price from when we crashed the crypto market.
this post was submitted on 15 May 2024
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100% it's crazy. I mined 1 btc in 2008(?) on a 9800gx2 over a bit longer than winter in Australia, and I've left it in a wallet and watching it flap up and down in value. This announcement was basically "crypto is up so we have enough again". I mean selling what they must have will crash the market again surely. Or the repayment is over 36 months as they slow sell, but then they risk the value again going down.
Don't do crypto kids, it's a game for traders with an appeal to people who want to self host, self sufficient, disconnected from big banks, and all that, but it was corrupted by financially motivated assholes. Therefore it became an investment/wealth vehicle and received the attention of the most morally bankrupt, manipulative people.
Trust is what any currency that has no intrinsic valueis built on. Crypto can't have that when the fraction of good to bad actors is skewed so heavily.
So convenient
Convenient for who? The people who orchestrated the theft are going to prison. The people who came in to pick up the pieces are the ones who were able to claw back the money to pay back the victims.
Convenient for SBF who surely will use this to argue his crimes didn’t hurt anyone.
He already did argue that, and it backfired.
The FTX restructuring officer wrote a letter to the criminal court specifically arguing that SBF's argument was bullshit for all sorts of reasons, and the court agreed: "A thief who takes his loot to Las Vegas and successfully bets the stolen money is not entitled to a discount on his sentence."
Plus that argument and a few other statements he made showed his lack of remorse, which denied him credit under the guidelines for acceptance of responsibility, and probably factored into his fairly harsh 25 year sentence.
Yeah, FTX stole customer investments, sold them, then invested that cash in other stuff and hand out cash to executives. Some of it was traced to specific people (including SBF and his parents), and the restructuring officers clawed that back. Some of the investments paid off, some didn't, but the end result was that there was enough to repay people based on what things were worth on the bankruptcy petition date.
That’s like telling Madoff’s victims they get paid back in 2024 the amount they invested in the 1990s.
Contrast with when California stole the Bruce family’s land, they had to repay the current value instead of keeping ill-gotten gains.
There seems to be a misunderstanding here. Who's keeping ill gotten gains? This is like the Madoff case where the investments on paper simply didn't exist. There are no gains, much less ill gotten gains, that aren't being returned to victims.
That’s like telling Madoff’s victims they get paid back in 2024 the amount they invested in the 1990s.
No, people are getting paid based on the value of their investments at the time of the FTX collapse, not tracing back years to when they first deposited funds. That distinction makes a huge difference, especially in a case like Madoff (or the original Ponzi scheme by Charles Ponzi himself).
"Trust me bro"
That dude has the most punchable face.
It seems to be a feature that many techbros and financebros share: they all have incredibly punchable faces.