Crypto giant FTX files for bankruptcy after $32B collapse: Vegan CEO Sam Bankman-Fried, 30, resigns in disgrace in the face of SEC probe as lawyer who oversaw Enron liquidation takes over

UK Daily Mail ^ | November 11, 2022 | Keith Griffith

[C19fan]

FTX, the troubled cryptocurrency exchange, has filed for bankruptcy after a stunning financial implosion exposed concerns about its handling of customer funds and rocked broader crypto markets.

[C19fan]

I remember there is some meme about crypto along the lines, "poof and it is gone". I find this is hilarious. This FTX got destroyed in a classic bank run one might see in TV and movies, for example, Mary Poppins. A fellow freeper educated me why a so called "exchange" was subject to the risk of a bank run, because, FTX discovered what the Italian goldsmiths did during the Late Medieval period. FTX could lend out the crypto to earn a profit just as the Italians goldsmiths lent out the gold people placed there for safe keeping. No FTX was not an exchange comparable to the New York Stock Exchange but a fractional bank lending crypto. So yes this crypto bank faces liquidity and insolvency risks. On the top of that, a big player in crypto who had a grudge against the vegan fraudster started a rumor this FTX was in trouble,and the rest is history. A good author would be able to use this material for a page turner.

[Cletus.D.Yokel]

Don’t look past his mother.
One the largest Demonicrat contributors and bundlers in the US.

Has the CIA money dried up?

[PatriotarchyQ]

No shame in bankruptcy. Some of our top businessmen and businesses have resorted to this Constitutionally enshrined right.

[V_TWIN]

Invest in crypto they said........you’ll clean up they said........

[nascarnation]

Has Biden appointed a “crypto czar” yet?

[DannyTN]

[Maine Mariner]

And a great movie like Margin Call or the Big Short.
I gave my students an extra credit paper if they watched the Big Short; several of my students watched it and for them and me it was an eye-opner. Great movie, great cast!

[NeverTyranny]

And his name fits! “Bankman-Fried.” LOL!

[George from New England]

The newest, latest and greatest, laundering technique. Open a bitcoin exchange and poof there goes the $$$.

[No name given]

Too bad Gyorgy boy hasn’t.

[rktman]

Guessing bankman fried set aside a little sumpin’ sumpin’ just in case?

[glorgau]

The classic line from Animal House applies here: “You F’ed up, you trusted us”.

[JonPreston]

His middle name is actually Bankman?

[Bonemaker]

Bring back debtors prisons. Populate on a case by case basis.

[dfwgator]

Rule Number One of Investing: Don't Invest in Things You Don't Understand

[ConservativeMind]

The Big Short was a great movie.

Margin Call was good.

[dfwgator]

Jeremy Irons was so good in Margin Call. And as despicable as he is IRL, so was Kevin Spacey.

[Bonemaker]

Trading Places.

[ByteMercenary]

“... Vegan CEO Sam Bankman-Fried, 30, resigns in disgrace ...”

I’m sure that his golden parachute will ease his ‘disgrace’ unless of course it is crypto-coin.

[Maine Mariner]

Great visual. It reminded me of an excellent book written by a fine economist, Charles Kindlegerger, in 1978: Mania, Panics, and Crashes. Paul Krugman did not write the book!