fukk is going on with FTX

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I know very little about crypto. So this exchange was one of the most popular and stable crypto exchanges out there and got liquidated almost overnight? And then whatever funds were left were siphoned out through a software backdoor?

It all seems so insane to me. Would this be equivalent to Fidelity or Vanguard just suddenly going bankrupt and losing all invenstors' funds?
 

Deafheaven

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I know very little about crypto. So this exchange was one of the most popular and stable crypto exchanges out there and got liquidated almost overnight? And then whatever funds were left were siphoned out through a software backdoor?

It all seems so insane to me. Would this be equivalent to Fidelity or Vanguard just suddenly going bankrupt and losing all invenstors' funds?

I don't think that can happen with stocks correct me if I'm wrong someone.


Fidelity would have to be lending out everyone shares to another broker and and get called on it...I think thats what would be similar but I'm not entirely sure if there is a way for that to even happen.
 

boriquaking

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I don't think that can happen with stocks correct me if I'm wrong someone.


Fidelity would have to be lending out everyone shares to another broker and and get called on it...I think thats what would be similar but I'm not entirely sure if there is a way for that to even happen.
No that can’t happen you’re right, but like, that’s the equivalent
 

bnew

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I know very little about crypto. So this exchange was one of the most popular and stable crypto exchanges out there and got liquidated almost overnight? And then whatever funds were left were siphoned out through a software backdoor?

It all seems so insane to me. Would this be equivalent to Fidelity or Vanguard just suddenly going bankrupt and losing all invenstors' funds?
yup, except theres no FDIC or SPIC insurance in this case.

I read a comment that said their ISDA agreement isn't applicable because they don't meet the capital requirements of $1.4B , meaning no insurance there too.
 

Deafheaven

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yup, except theres no FDIC or SPIC insurance in this case.

I read a comment that said their ISDA agreement isn't applicable because they don't meet the capital requirements of $1.4B , meaning no insurance there too.

Man the more that comes out the more this looks like an obvious scam.


How did it get so far :whoo:
 
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