FTX

coinfeeds-bot

tldr; Prosecutors are seeking a 20-year prison sentence for Celsius Network founder Alex Mashinsky for his role in a multibillion-dollar fraud. The DOJ accuses Mashinsky of misleading customers about Celsius's operations, resulting in $7 billion in losses and personal profits of $48 million. Mashinsky pleaded guilty to commodities fraud and conspiracy charges but denies responsibility. Prosecutors compare his case to FTX founder Sam Bankman-Fried's, emphasizing the severity of Mashinsky's deliberate actions to deceive and profit at customers' expense. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

Bran_Ham

I have a very unusual story for this! I bought my first PC right before covid and during covid I started mining dogecoin with my friends. I got really interested in the world of crypto and bought 1k of eth. I continued working my ass off in high school. Saving around 18k. Which I left in my bank account gaining 0.02% interest. Wasn't anywhere close to beating inflation and I knew I was losing real purchasing value everyday. I began to read more and more on bitcoin and after FTX crashed I used my mothers Robinhood account and bought 5k work of btc for a period of about a month. This was whenever bitcoin was at 16-17k. I have held on to a little over 1 BTC ever since. I made that investment because I believed in what BTC represented. Decentralization and a track record for blockchain efficiency and safety. But, I also made that investment because I could! I lived with my parents who were supplementing most of my income. I was very aggressive in my bitcoin investing. But I wouldn't say that's the best method. Buy bitcoin in an amount that won't be detrimental to other things you have to take care of like rent, insurance, food, etc. Keep buying small amounts of bitcoin over a long period of time. Get a cold storage wallet and every time you buy bitcoin transfer it to the cold storage wallet. Remember don't ever share your security keys. But, I am just a college student sharing my own journey and suggestion based upon the situation I found myself in when i started investing. Everyone is different. Even if the amount of BTC you are buying is small. Small motion is always better than no motion. Do what works best for you and do you due diligence when investing always!

mrjune2040

Bankruptcy = a potential total loss. All for the sake of a few %. See: FTX, BlockFi, Celsius and all the other companies doing the same thing that have come and gone before.

p0Nd3R1Ng_hYp0Th3s1s

I hear Mt. Gox might be a alternative to FTX /s

CoupleofDoms

Ever heard of FTX?

KiNg-MaK3R

Same! I was adding a lot between 16-21k. Everyone kept calling for 12k… FTX is going to make Bitcoin drop to zero!!! and it never happened…

easily_erased

The whole "sustainable energy" arc was just good ol' market manipulation/ narrative cover for big money to sell before they pulled the plug on FTX. They don't actually care

Strictly_Business_23

With a 0% of losing your principal if you store is securely vs a greater than 0% chance of losing due to counter party risk if you hand it to Coinbase see blockfi , FTX as an example.

SnooPeanuts9111

Same here. It was the time of the FTX collaspe. I was thinking of putting more money into BTC and felt the price of 16K was low enough. However he kept stating his estimation of 9K. I trimmed the size of my investment to half. And that became the lowest point of entry of my whole portfolio.

ImpossibleCoffee91

let's look at the positives and agree, that at least we both agree on XRP. the problem is, that pretty much **all** altcoiners fail to realize the reason on why bitcoin is so popular for something that is so slow & expensive to use(let's just ignore lightning network for now) is the fact that it's truly decentralized unlike any other project up to this point, with few examples below to illustrate the point: * BTC has no CEO, no company, no workers, no advertising campaigns. so in laymen terms no upkeep expenses. XRP and ETH use millions if not billions for lobbying, advertising, marketing, worker salaries, insider cuts etc that flows out of the value of said coins * see what happened to XRP because Ripple got sued? the same can happen to ETH. it would be very naive to put 100% of your trust into people running the coin that you have all your money invested in, because it would be the exact same thing as trusting your bank or broker(look up on Bernie Madoff, FTX or truckers of canada having their bank accounts seized) * do you think that let's say Russia, China, Australia or Japan wants to invest their money in something like XRP, that is basically a worthless coin created by a company based in the US, which is liable to pay millions and billions in taxes to the US government? bitcoin doesn't have a company behind it, so no taxes. * I believe that XRP does not suffer from this, but ETH certainly does, which is censorship, meaning that some ETH transactions can be locked if someone thinks that you are sending the money for illegal purposes. again, the same as banks, which is what the crypto community tried to get away from originally, but centralized coins such as XRP and ETH want to bring back the old system * BTC had indeed a 5% premine by Satoshi, but he has never sold any of his BTC up to this date. he did this in order to launch and secure the BTC network. now how much ETH do you think the insiders premined before making the network public? with XRP we don't even know, because the first 32000 ledger entries have been "magically erased", which I find quite funny that the XRP community sees no issues with that

Triple-A-Official

Any individual with more than 1 IQ would look at ethereum nodes vs solana nodes and realize that solana is dog 💩 and noe even the good kind of 💩 the stinky one 💩. Once FTX liquidate in 2~3 years it will drob back to 1-2$.

BrocoliAssassin

Because people are stupid. You had people simping for Tiffany Fong and she wanted a very lenient sentence for SBF cause "he didn't kill people so why should he get 25 years" & "my boyfriend wasted my time so does that mean he should be in prison too for 25 years?". These are the dumbshits that vote with this type of logic. The rest of the FTX crew got out with no problems, didn't have to pay the victims back,etc. Hell, most of them would have got real time if they had only stolen from 1 person. In the USA we usually give lenient sentences if you rob a lot of people. And also if you're rich .

ShyPoring

I told you, in the long run nobody will care about that — just like the fall of FTX is no longer relevant today. There won't be a Bitcoin 2.0 either. It also can't just become a niche again — those days are over, especially since the first spot ETFs were approved.

Street_Pipe_6238

Yeah I know what shadyness you are talking about I was online Poker player and had pretty good insight into their past BUT we are talking crypto startups there is very little to no NOT SHADY AT BEGGINING companies. I used them and took a large portion out and only use them for "fun experiment"since all the celsius/terra/FTX stuff but in my eyes now they are pretty much too commited to be prestine clean given they hold it up together and enviroment is great for them to create very profitable company

qwertydcf

Solana is the next FTX, i can feel it. I dont trust anything about this coin. JMO

NoChanceItsHer

The risk isn't a new 6102, it's more RobinHood or other "huge" "crypto" sites. Sure, store it in FTX, there won't be a problem. Like Celsuis, insert piles of other names here etc. Aaaand it's gone. Becoming your own bank comes with responsibilities such as working out how to protect your money. From the govt, from snake-oil salesman, from inflation, from thieves/friends/family etc etc Bitcoin only. Cold storage. Fuck em all.

Amber_Sam

I hope you are right and Conbase will eventually fold down like FTX a few years ago. That would be epic!

Awkward_Potential_

Oh no! Another FTX or Gox? What happened to people who stuck around bought those dips?

Subject_Ad3837

Past halvings such as in 2020, the general public had largely forgotten about crypto during the prior bear market and there was a greater supply of new buyers as lower total marketcap. There wasn't the hangover from major headlines of retail getting burned by FTX in 2022. That is what many normies still think of when it comes to crypto. Crypto being promoted by a sketchy person like Trump also probably doesn't help with changing the perception from normies that it's just a scam. Now it's mainly Bitcoin price movements being driven by ETFs.

Trick-daddy-420

Yeah I personally wouldn't mess with anything else after the whole FTX ordeal. I also haven't found anything with cheaper fees so it's a win all around. We're talking less than 1% fees. Like I said, you just need to make sure you're using coinbase advanced. I have bought tens of thousands in crypto at this point and have spent less than $250 in fees to purchase all of that meanwhile my portfolio has more than doubled in that time so pretty worth it in my opinion. You will get eaten alive with fees buying small amounts with other platforms. So it's also not just the security thing but also just a practical thing. I can tell you that nobody who is serious about crypto uses things like cashapp to buy crypto regularly. Just my two cents.

Trick-daddy-420

I like coinbase advanced. You'll see people talk shit about coinbase but I've been using it to buy amounts as small as $5 a day for years now with absolutely zero issues. The key is to make sure you're using advanced and not the regular coinbase. Just do market buys if you're buying small amounts. The fees are very, very reasonable. I typically do $10-20 a day and for a $10 bitcoin buy for example, I'll be charged 7 cents. I don't really trust other platforms, honestly. It's one of the few exchanges that hasn't been mired in controversy over the years and supposedly everything is backed up by more than a 1:1 ratio, meaning you shouldn't have to worry about an FTX type incident happening but obviously this is crypto and it's the wild west and I would still keep your crypto in a cold wallet. I have tried other exchanges/platforms out and I always go back to coinbase advanced. It's quick, easy and trustworthy in my experience.

Nothing-Busy

I went hard into BTC after the FTX fraud. Realized the SBF was the poster boy for the vices of shit coins and the virtues of self custody and the crash in Bitcoin had nothing to do with fundamentals. My average cost is 24k so I have pretty much 4'xed. Still hodling.

Ok_Score9113

BTC uses lots of energy and is bad for the environment - It uses far less than the global financial system, and actually its energy usage is misleading, as it harvests energy that would otherwise go to waste, preventing excess energy from existing production being pumped into the atmosphere in the form of harmful gasses. As a result, it actually REDUCES wastage. The thin margins of mining incentivises miners to seek the cheapest energy possible, which always ends up being energy that has been overproduced and therefore has low demand at a certain point in time, due to low demand. The heat that is generated from the ASICS is also able to be put to use for other purposes, and when done efficiently, is a net positive. There are plenty of environmentalists who have explained this. BTC is slow compared to other crypto’s / blockchains: people will tell you this is a bad thing, it’s a good thing. It’s slower by design, and that’s how it remains decentralised and secure. The only way to increase the speed of a blockchain is to sacrifice decentralisation or security The above 2 are actually weak arguments in my opinion, as common as they are. The best argument I’ve ever heard against Bitcoin, which is more about human behaviour than it is Bitcoin, is this: Even if Bitcoin is adopted en mass, the financiers and consumers alike will force the creation of paper claims / credit systems on top of Bitcoin that mirror what we currently have, suggesting that they will do exactly what the US did with their pseudo gold standard of the 20th century. Therefore perpetuating the same destructive cycle of irresponsible credit growth and debasement. My response to this is that it may well happen initially, because human behaviour is hard to change, and current generations are addicted to credit, however it will not succeed or last. People who try to provide or use such services will get burned and, unlike in the current system, will receive no bailout. A Sound money system will force responsible behaviour through real consequence, and the more people who try it, and get burned by it, will learn from it and stop this behaviour. FTX is a great example of this. They offered unsustainable yields which drew customers to them, they collapsed, people lost their money, the man response was jailed, and those people will never do it again

fairlyaveragetrader

Yeah, started buying in 2017, went right over the top but was smart enough to look at people who had made money in this sector before. Roger ver was a Hot topic at the time and I looked at what he did and realistically it's the same thing the winklevi have done, you just buy when everyone panics and wait. Bought a few Bitcoin and a stack of Litecoin in 2018 and 2019 just thinking you know what these guys are going to run this again. They did, sold between 30 and $40,000 which I didn't feel was too bad since my average purchase price was about 6K. Paid my house off. Watched it go to 69k, did not get back in just ignored it, figured when the downtrend began I had about a year before we had a bottom, FTX blew up, that was my signal to start buying again but I thought to be fair we were going to touch 10K which we never did. Bought some under 20,000 but I would say the majority between 20 and $30,000. Sold about 75% of my stack between 95 and 108k. I actually got a few thousand dollars sold right at the top this time 😂 absolute dumb luck I was just cost averaging out a little bit each day Picked up a little more on this pullback which I was kind of 50/50 on doing but looking at what happened to eth and ltc plus Bitcoin holding its major moving averages and trend lines. Maybe the traditional four year cycle is ending. Etfs could be changing the Dynamics and we know Bitcoin likes to follow the M2 money supply. Now comes the hard part. Are we going to have a double top? Who knows, that would be a rug pull wouldn't it? Are we going to make a slightly higher high? Who knows, what happens if we run for another year and get past 200,000? Also possible and there's no way to handicap this. All that stuff I said before, that was trading on statistics and historical events. This going forward is not historical. We have no idea what's coming because it's different behavior than what we've seen before

thekevinquantum

If I were you I'd use a Hierarchical Risk Budgeting algo, where you can weigh the relative covariances of the coins, their realized volatilities, and you can optionally input your expected returns (or use historic as a momentum indicator) and go from there. No such thing as holding too many coins in my opinion. In crypto each coin carries significant idiosyncratic risk meaning it's a risk factor you can't diversify away (think FTX) so being in more projects especially when the signal to noise ratio is so low is actually your best bet.

KiNg-MaK3R

Dude… I did the same. It’s not like I went all-in in 2017. I traded, bought shitcoins, leveraged when I shouldn’t have. Now it’s DCA bitcoin and only Bitcoin and never selling. But we all go through it. The FTX crash converted me to a complete maxi.

Ok-Associate-8799

It won't be real. It's already being rehypothecated out the ass. One day crypto journalists are going to discover the concept of rehypothecation. You'd think it would be better understood after the collapse of FTX. To explain how it worked with with gold price suppression: > "Banks use gold held in custody as collateral for multiple loans or financial instruments, creating a fractional reserve system where paper claims exceed physical gold. This amplifies supply in paper markets, suppressing prices." Sound familiar? Insurance industry explaining rehypothecation risk in crypto, as related to FTX: > As a crypto exchange which offered futures and other leveraged trades to investors, it rehypothecated assets (tokens) in order to create leverage that its customers wanted. The death spiral of FTX raises a lot of good questions about coin custody and crypto insurance. > ....We have seen time and again that when the origination of risk is separated from the retention of risk, underwriting standards tend to fall. This occurred with Lloyd’s of London’s (commonly misunderstood to be an insurance company, but it’s really an insurance exchange) near collapse in 1991-1992. It occurred with “originate to distribute” excesses with mortgage backed securities and collateralized debt obligations that fueled the global financial crisis in 2007-2010. It’s the reason that reinsurers insist on a right to information or to audits from the cedants. Warning from 6 years ago about how rehypothecation will destroy crypto supply metrics: https://www.youtube.com/watch?v=kxpVO6RE09E ...largely predicting things like FTX. We have absoluteley no idea what the paper claims to BTC are. Considering the derivatives crypto market is now many times larger than the spot market - currently 8x I believe - that much of crypto trading is OFF CHAIN (meaning centralized with no publicly visible ledger), and much of it is on unregulated centralized exchanges who do not have to prove collateral (think of those 100x leverage exchanges), and knowing what FTX was already up to... ...you can assume paper claims to BTC are far exceeding supply claims. I predict there will another massive scandal with a large exchange offering leverage trading (one specifically imo), when customers realize this exchange doesn't have the crypto reserves to cover trades. When the run on this exchange occurs, it will, like FTX, cause another massive crash. Except...hopefully...this time, there will be long discussion about rehypothecation and how crypto supply metrics cannot be trusted.

East-Caterpillar-895

He's right, but only in a small sense. Bitcoin has been treated as a tech stock, some up and coming thing. It's been pumped and dumped and then came the shit coins and that's why everyone believes it's a scam. The people who keep on stacking and holding are using it as it's store of value. The reason bitcoin is "unstable" is because people want to trade bitcoin for dollars. They want to get rich in fiat, not realizing the true value of the dollar. People who hold know that the dollar is over. They're fucking with it and want to scam their way into bitcoin before its too late. But nobody cheats bitcoin. See: the FTX debacle.

1millionnotameme

I mean, it's happened every cycle, there's a bust and BTC drops like a rock, last time it was the FTX crash, this time it's speculated to be the MSTR type companies (unlikely though) so who knows, ultimately though, the point being, just DCA during these dips and over the long term you'll up massively

drhiggs

I tried this with BlockFi a few years ago for about a year… almost got margin called a few times, heard some troubling rumors, immediately paid my loan in full, BlockFi announces its freezing withdrawals a couple weeks later… Thankfully I got my bitcoin before things got bad and put it into FTX! Dodged a bullet!

mcr55

Every solution besides holding your own coins has been disastrous for the past 15 years. Mt.Gox- RIP BlockFi-RIP GBTC- Lost double digit % FTX - RIP HODLing your own coins is the only long term solution.

usercos187

FTX did not do address poisonning, your funds are safe. 😐😂

underdoggie

Ouch. I have 11 NFTs in a similar situation. They were minted on FTX. Their metadata server is gone.

flyflyflyfly66

You mean stake like at Celsius, FTX, BlockFi? Solid plan

the_bueg

I just duck-duck-do'ed for it, and can't quickly find any concrete credible report link to. Then again, search engines have gone to shit. It used to be widely reported on by "mainstream" crypto media - back in the days of FTX and other shady exchanges, even Binance, who were notorious for holding tiny fractional reserves of their user's total reported BTC balances. So I'm not sure why it's not showing up in results now, just a few years later. Your BTC balance on Coinbase, Kraken, or Binance, for example, is just a database entry. When someone sends you BTC to a "receive" address Coinbase gives you, you don't have - and can't get - the private keys to that wallet - hence the (annoyingly overused but true) saying, "not your keys, not your coins". You can of course send those coins to your own wallet that you have full control over - and at that moment, hopefully Coinbase can rummage up some real BTC to do so. (To my knowledge they've never yet been unable to - but I'd wager there are funny internal stories of them running nearly dry in their early days, and scrambling like mad to cover runs. I have a close friend who used to work at a high level there but it would be in poor taste to ask. I'm hoping/assuming she'll volunteer stories someday.) Exchanges nowadays CLAIM to be fully backed, but they aren't legally required to be like banks, they have no real incentive to be other than not being able to cover runs, and there is absolutely no way to verify for sure. Audits, published wallet addresses, merkle trees, balance sheets - all ultimately meaningless as a way of validating that they have actual liquid BTC as free assets that can be immediately redeemed if all users cashed in at once. If you go to ChatGPT now and ask it to "list the BTC held by exchanges, wallets, ETFs, etc.", my session at least produced a table that added up to 24.7 million BTC, out of a max hardcoded cap of 21 million BTC. All of that to say, I feel comfortable leaving maybe 10% of my coins on Kraken + Coinbase at any given time, available for trading, or just out of laziness. But I start getting nervous when it approaches ~10%, and move them to my wallet. Both exchanges are FDC insured to up to $100k, so as long as you trade in USD (not sure about USDC which Coinbase at least treats as "cash" equivalent to USD), you're probably OK, and I don't worry about too much. Though, the "full faith and credit of the United States of America" these days... eek.

alsoilikebeer

The big shutdowns: \- Mt. Gox 2014: 850 000 BTC lost/stolen \- QuadrigaCX 2019: $190 million lost when owner died suddenly \- FTX: $8 billion dollar owned customers. \- Bybet was robbed of 1,5 billion just now in february. Users got all money back, but many exchanges would cover a theft like from customers pockets. \- Binance: 280 million users, biggest exchange in the world and still very limited audits. You would not trust your local bank if they had had this type of action. Bitcoin was not created for you to keep it on an exchange. Many of the things that make bitcoin great makes it a bad idea to not personally take responsibility for it.

Solanafluent

I have been staking my SOL since FTX crash, so a couple of years. If you're staking I would suggest doing liquid staking with the on-chain projects like vSOL or some other LST. This way it's pretty much set and forget and if you want you can use it in DeFi. But in your case if you want to unstake rapidly you cannot do that if you staked with a CEX because they have a unstake period. Feels much safer to liquid stake because I can exit position instantly if I would like tbh

shaunj72143

Me for 6 months after the FTX collapse 😂

DataEngTed

Looking for a real DCA formula? Here you go: 1. Use the '50-30-20 rule' to find your true investment capacity (50% needs, 30% wants, 20% savings) 2. Allocate a fixed percentage of that 20% to Bitcoin - most experts suggest 1-5% of total portfolio for crypto 3. Set up automatic weekly/monthly purchases regardless of price 4. Create 'dip buckets' - extra cash pools of 10-20% of your regular investment to deploy when BTC drops 5%, 10%, and 20% 5. Track your dollar cost average using a spreadsheet or app like FTX (formerly Blockfolio) Or just follow u/Mr_Anderson's advice and cancel your streaming subscriptions - because nothing says 'crypto millionaire' like eating ramen while watching YouTube on free WiFi!

magic-karma

Everyone has to make their own choices based on their own risk tolerance, but being based on the US, having decades of custodianship, being regulated and audited by the SEC all are very strong points. Assuming you are based in the IS you have legal recourse against them in the event of malfeasance. They are not an FTX or anything remotely close to it. I would say the same for Coinbase as well, and even more so as they are a public company (Fidelity is still private/johnson family, I believe) and most company with listing requirements and audits beyond what Fidelity would do. Neither company is immune to bankruptcy, but both have leaned into regulation instead of avoiding it. Again, weigh this with your own personal risk tolerance.

Nothing-Busy

I tried to recommend that a friend get in back when it was 25k in the aftermath of FTX. He went in hard with his Roth IRA at about 90k. Figure that is the best place for an asset you expect to 10x over a decade.

MurphMurphyAK

FBTC which I hold in my retirement account is referred to as an ETF BY FIDELITY. Go read about FTX and paper bitcoin. I’m not sure if you don’t understand the concept or you just have not heard of it. I’ll give you an example you will relate to, you go buy 10 identical banana hammocks at Target. I’m sure you are in fly over country so let’s say Topeka. You only need two now and have no place to store the rest in your trailer. So you leave the other 8 at the store to pick up when the thong rips. Your 8 thongs are put back on the rack, your buddy needs 4 hammocks. He buys those and is on his way. The store has collected sales on 14 units but only 6 have left the store. The next shipment comes next week. What happens when you throw a party and come to collect your 8 hammocks but only 6 remain? That’s paper bitcoin. If you want to get in a pissing contest, we can higher a 3rd party fiduciary to determine who holds more bitcoin and who has a bigger Richard. I’ll split the cost with you. Private school then Cornell, Topeka state is a great fit for you bud. Everyone is very proud.

Nyanzerfaust

My parents still think that the "CEO of bitcoin" scammed everyone back during the FTX collapse. Anyway, never tell people about your investments.

jawni

Well they were one of the biggest purchasers of SOL from the FTX estate, so there bullish on SOL, which is the opposite of the average redditor. Congrats to them on their conviction on the inverse r/cc strategy.

stKKd

Funny how the abruptly switch to FTX story out of nowhere. Journalists are just ignorant or plain sight state/central bank lobbyists

Aerocryptic

FTX was fine cause they didn’t have any BTC left to sell

Dark_Raiden_

Btc would be fine; look at FTX everyone thought it was over and next thing you know the bottom is in. Saylor admitted he will have to start selling btc at 67k so let's hope it gets there

MurphMurphyAK

Nice sanctimonious rant. You sir are one of those people who should do a lot more listening and less talking. Sometimes these people are called children. You missed both points when you were yelling at the clouds. Each example you gave would not be manipulation. If you buy and the price goes up/down, was that manipulation? That was a paint huffer type question. If a government official tells his Sunday golf group, the tariffs land on Tuesday and they short the market accordingly on Monday, is that manipulation? I’d say it is because the person/entity on the other side of that trade got goosed. What say you? You know who are the best people to manipulate? The ones who refuse to believe it’s possible. The above comment has nothing to do with holding your own keys. His concern is ETFs ( or ETPs as you like to say, P is not close to F so you didn’t fat finger it you mental midget) not buying the actual amount of bitcoin to match the fund assets. Paper bitcoin results in price suppression. FTX was built on paper bitcoin, it does happen. Go fly a kite junior. Side note: I’m dying to see what you cook up in response. Please do everyone a favor and grasp the concepts before you pull out the flame thrower. I’ll save you a search of my profile history, I have a good deal more fun and bitcoin than you.

Numerous_Ruin_4947

Were you around when ETH dropped to $80 in 2018 and to $124 in 2020? BTC once crashed below $1. SOL once dropped below $8 after the FTX collapse. ETH won't drop to $0 - lmao! There's 34 million staked. The ETH Reserves have declined steadily. There's less ETH on exchanges in dollar terms than BTC. It is actually more scarce. By an order of magnitude. With some decent Meat Head Marketing it will be easy to pump ETH into the 5 digits.

QuickAltTab

She's for consumer protection. In the context of FTX, Celsius, Voyager, BlockFi, etc. you think she's wrong to advocate for better regulation?

Shelbadier

This was the exact scene in FTX towers before it all went south 

FrivolerFridolin

Aside from the risk of them going bankrupt and you never seeing your coins again, you don't know if they actually have the amount they're selling - which keeps the price down. Look at FTX: they did both.

P00slinger

FTX also donated massively to Republicans too through Ryan Salame

coinfeeds-bot

tldr; Sam Bankman-Fried, founder of the bankrupt crypto exchange FTX, has been transferred to the low-security Federal Correctional Institution (FCI) Terminal Island in Los Angeles. Previously held in Brooklyn and other facilities, the 33-year-old is serving a 25-year sentence for misusing FTX customer funds, with a release date set for December 2044. His parents are reportedly seeking clemency, though experts believe the chances of a pardon are minimal. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

GinormousHippo458

Yea. That KYC and law, sure helped law abiding FTX customers. Opting out of legality is one of Bitcoins features.. No law can modify bitcoin's consensus rules.

LogrisTheBard

Depending on your price risk tolerance you barely need exposure to crypto to at least get started using the chain. Grab some stablecoins, find some yield with them on something easy to use. You can pretty safely make double the APR of T bills on chain and only ever have to buy a few dollars for gas until you understand the tokens you are considering buying. Don't buy things you don't understand. Most people get started just buying tokens on a centralized exchange but there's a famous phrase that goes ["not your keys, not your coins"](https://tokenomicsexplained.com/the-rabbit-hole-explorers-guide/#not-your-keys-not-your-coins) which is something people have had to learn the hard way as recently as FTX.

processwater

Celsius and FTX didn't run into any issues

No-Magician-2257

There has always been volatility in the crypto market due to such events. I experienced them all 1) 2014 - Mt. GOX went under and I lost everything. They said Btc was dead 2) 2017 - Crypto winter. They said Btc was dead 3) 2022 - FTX went under. They daid Btc was dead. Point is. There have always been events that have caused setbacks of Btc. It has always come back. You are worrying about pimples on the butt of time.

dew_you_even_lift

I sold all my sol at FTX meltdown. It was a mistake lol

tbkrida

I did the same right around the time of the FTX meltdown. No regrets!

coinfeeds-bot

tldr; Sam Bankman-Fried, the disgraced founder of FTX, has been transferred to the low-security Federal Correctional Institution Terminal Island in Los Angeles, known for housing high-profile inmates like Al Capone and Charles Manson. Convicted of orchestrating a massive cryptocurrency fraud, he is serving a 25-year sentence and owes $11 billion in restitution. Bankman-Fried has reportedly attempted to reshape his public image through conservative media channels, possibly aiming for a political pardon. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

CryptoMemesLOL

Yes, I remember very well, that is when I bought some LUNA, FTX, CEL

LordIommi68

Don't do it. Look up BlockFi, Celsius, Voyager, FTX....

Mentats2021

Check out BTCSessions YT and check out the playlists. There is lots of tutorials that show you how to move to hot and cold wallets. Never leave stuff on the exchange... (read about Mt Gox and FTX). [https://www.youtube.com/watch?v=yJpvfRl03Tw&t=4724s](https://www.youtube.com/watch?v=yJpvfRl03Tw&t=4724s)

graytleapforward

If BTC goes to $40,000 I'll be set for life. I bought near the lows of the the FTX collapse, took some profit in the $90k zone and if it gets to $40 K I'll unleash again. It's an ill wind that no one any good

pop-1988

Yes, and there's even a version of FTX - gambling the customers' deposits - which won't attract a fraud conviction One half of this is to not have investors if they're not needed. SBF didn't need investors' money. He agreed to bring investors in because of the credibility they added. Unfortunately, 3 of the 7 fraud counts were for defrauding investors

pop-1988

The problem for those investors is that their diversification strategy allocates hundreds of millions for high-risk, high-reward investments, but there's more money looking for opportunities than there are credible opportunities. Vetting is limited to the information provided by the founder, and the decision to invest is often based on a recommendation from someone who already invested FTX had a list of people with the title "Director", most of whom didn't know they were on the board WeWork appointed investors to their board, with a clause that the founder and wife always had an 80% voting majority Theranos had a family connection with George Shultz, and that connection was sufficient to convince other investors, including Larry Ellison

splinternista

Avoid this, Not your keys, not your Bitcoin. Especially steer clear of anything related to crypto in general. If an exchange, company, or wallet offers anything beyond Bitcoin that's a major red flag. If they’re pushing scammy shitcoins and they're not a Bitcoin-only company, that’s a huge warning sign. They’re usually targeting naive and greedy clients, feeding them worthless tokens. Run from that. So many shitcoin exchanges and lending platforms have collapsed and tons of people lost their money. Just look back 2–3 years: FTX went down, Celsius, Voyager, and others. Learn from others' mistakes. If it’s not your keys, it’s not your Bitcoin.

Hungry-Class9806

I don't believe for a second that Gary Gensler was simply unaware of the shady relationship between FTX and Alameda, especially when a lot of people in the crypto space (investors, CEOs and journalists) were raising concerns about their business model and the head of the SEC was simply "nop... nothing to see here." It simply doesn't make sense.

Hungry-Class9806

Gary Gensler wasted public resources pursuing baseless legal battles and did nothing to stop FTX and LUNA scams despite all the red flags. And now he cares? Fuck him.

biba8163

Gary Gensler did a LOT to protect American crypto investors including blocking Celsius, BlockFI AND Coinbase from offering lending programs to American investors that bankrupted the former two companies. Preventing Coinbase from offering the program might have prevented a bigger market meltdown. He was also investingating FTX and corrupt politicians paid by lobbyists intimidated the SEC from continuing the investigation. American crypto investors turned against him because he considers most their shitcoins securities because they are money raising profiteering schemes without a use case and a clear value proposition where investors are burnt 99% of the time. In 2021, the SEC also blocked the now bankrkupt company Celsius from offering their crypto earn program to US clients. https://celsiusnetwork.medium.com/important-celsius-update-to-our-us-clients-6df471420cc7 In 2021, the SEC also collected $100 Million from the now bankrupt BlockFi and prevented them from offering their earn program to US Customers: https://www.theblock.co/linked/134165/with-100-million-settlement-confirmed-blockfi-aims-to-register-yield-with-sec In 2021, the SEC blocked Coinbase's crypto Lend program which Coinbase CEO Brian Armstrong was complaining about. The same type of program where Gemini customers lost their money lending and earning interest on Bitcoin/crypto loaned out to Genesis. > The SEC has told us it wants to sue us over Lend. We don’t know why. https://www.coinbase.com/blog/the-sec-has-told-us-it-wants-to-sue-us-over-lend-we-have-no-idea-why Right beore the FTX crash Tom Emmer and 8 other members of Congress who received contributions from FTX wrote a letter to Gary Gensler and the SEC to stop investigating the crypto industry because it was a violation of the Paperwork Reduction Act. > It appears there has been a recent trend towards employing the Enforcement Division’s investigative functions to gather information from unregulated cryptocurrency and blockchain industry participants in a manner inconsistent with the Commission’s standards for initiating investigations. We have reason to believe these requests might be at odds with the Paperwork Reduction Act (PRA). - Tom Emmer in a letter to Gary Gensler https://emmer.house.gov/_cache/files/0/c/0c7fc863-7916-4b19-bc44-52bef772287e/9B0B9D1CA9B3C215DDC762DF5B0F6864.3.16.22.emmer.sec.letter.pdf

coinfeeds-bot

tldr; Sam Bankman-Fried, former FTX CEO, has been transferred to Terminal Island prison in California, which previously housed figures like Al Capone and Theranos COO Ramesh Balwani. Bankman-Fried was moved following an unsanctioned interview with Tucker Carlson. He is serving a sentence after being convicted on seven felony counts in 2024. It remains uncertain if he will stay at the California facility until his tentative release in 2044, as his appeal process may be affected by his current location. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

tbkrida

Sold all my alt coins into Bitcoin around the time of FTX and never looked back! The air is nice up here… come join me.😂

Numerous_Ruin_4947

Per Solana Beach, 3/4 of the transactions are voting related tx from validators to reach consensus. All these voting transactions should be removed from the total transaction volume. [https://solanabeach.io/](https://solanabeach.io/) Then you have to include all the arbitrage bots. Solana's transaction volume is highly inflated and all "Smoke and Mirrors". The fake it till you make it casino scam chain. >Never forget, Solana first gained attention from Sam Bankman Fried and FTX. Born from the criminal empire and still as criminal as ever

Hard_Corsair

Cardano uses a fundamentally different staking system that's built into the protocol. You pick a stake pool to register your wallet with, and as a result the ADA never leaves your wallet. Additionally, there's no unstaking period if you want to send/spend your ADA. Staking ETH with less than 32 is often done through third-party smart contracts, which is clunkier to use. By non-custodial, I was excluding staking through exchanges like Coinbase. Exchanges are custodial in that you don't actually have the wallet keys to your crypto, so you're relying on the exchange not to go all FTX and steal it.

GiverTakerMaker

If only it were so simple. If you have a trading plan based on this analysis, I honestly wish you the best of luck. May all your bets pay off. Sadly, macro factors play a much more important role in the various exchange rates between BTC and fiat currencies. For example, the natural floor price is a derivative of the cost to mine. And the social narrative plays a humongous role in what the peak "price" each cycle is. Last cycle would have gone higher but for FTX for example. Covid crash was similarly an unpredictable event. For your first derivative analysis you might be interested in looking at the diminished RSI peaks each cycle.

bizaroo933

Isnt it just very dumb what dev of MANTRA did? Didn’t he see what happened to the owners of LUNA and FTX? This rugpull will lead to jail.

shitcoin_swampman

The SEC was run by a garbage human being back then too. They didnt do shit to stop fraud at FTX or celsius, but that sheister was quick to sue kraken and Coinbase and perpetuate negative stereotypes about jews.

Dazzling_Marzipan474

I went all in when FTX collapsed. I sold all my crypto for cash and DCA'ing it into Bitcoin. I'm just sick of researching it all, wasting time, etc.. especially by the end of the day just buying Bitcoin outperforms a crypto portfolio

osogordo

2022-2024: Negative impact from FTX and Biden's operation chokepoint 2.0 2025: Trump's operation shoot self in the foot

HSuke

Looking back, Do Kwon didn't do anything particularly unethical other than overselling the stability of the Terra Luna peg. There were plenty of other algorithmic stablecoins like Neutrino and Iron that failed in the same way, and their creators continued on to other projects that are still popular now. A better comparison would be to BitConnect or FTX coins, which were actual scams.

SoberHye

Trust yourself. Exchange goes under so does your crypto. FTX, Celcius just to name a few.

Every_Hunt_160

9 out of 10 alts are pretty close to 2022 levels when FTX crash happened

Shobe87

FTX or Mt Gox payouts?

blingblingmofo

XRP is similar in terms of decentralization and originally had 60 billion tokens allocated the foundation (so far there are only 58 billion token in circulation with 100 billion total supply). Solana was similar and had 48% of tokens to insiders but the FTX debacle helped Solana decentralize as they were the lead investor and have since had to sell all of their tokens. AVAX is another where 42% was allocated to insiders.

fan_of_hakiksexydays

Mantra rug, Bybit hack, tariff wars, stock tanking. This is like double the black swan events we had with the Luna and FTX combo.

Intrepid_Upstairs243

I’m sure all those are scams for the most part, but they weren’t rug pulled in one day. You’re right about FTX though if I’m remembering right, but I don’t remember safe Moon but I’m pretty sure that just bled out until it was zero and Internet computer did not rugpull. You’re just bringing up projects that you think are scams.

BuyETHorDAI

There was Luna, FTX, BitConnect, OneCoin, HEX, SafeMoon, the internet computer, I'm no doubt missing more. The market is dipping because the orange man-child sent a Truth. I wouldn't read too much into it.

crazy_lolipopp

But this is the first time this has happened in top 100 since Luna and FTX though? And I genuinely thought this was a real project that people were talking about?

coinfeeds-bot

tldr; Sam Bankman-Fried, founder of the collapsed crypto exchange FTX, has been transferred to FCI Victorville Medium II, a medium-security prison in California known for violence and strict inmate groups. Bankman-Fried is serving a 25-year sentence for fraud after being convicted in one of the largest financial scams in U.S. history. His parents are seeking a presidential pardon, citing recovered customer funds and an allegedly unfair sentence. The prison's harsh conditions and inmate dynamics pose significant challenges for him. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

sumunsolicitedadvice

Yes, but the vast majority of it is invested in what is a volatile but appreciating asset. It definitely is playing with fire, but there is an actual investment there. In a real Ponzi scheme, they’re not investing at all. Like, Bernie Madoff didn’t have any underlying investments at all. It was a pure Ponzi scheme. Some people may be cooking their books to make underperforming investments look like they’re doing better than they are. And they may try to raise additional money from new investors to alleviate their cash flow problems. That’s more like what FTX was doing. Anyway, just because MicroStrategy is using some money from new investors to pay dividends, rather than liquidating some of the holdings to pay dividends, doesn’t make it a Ponzi scheme. It doesn’t necessarily even make it fraud or illegal, especially if none of what they’re doing is ever misrepresented to investors/the public.

GreedVault

[A court filing alleged apps such as Excel spreadsheets and Slack messages were used to manage the assets and liabilities of FTX and its entities.](https://cointelegraph.com/news/ftx-financial-controls-were-a-hodgepodge-of-apps-says-court-filings) Yeah man, he could develop better Excel skills this time around.

Mr_Notacop

They are going to cripple him for that interview. I bet the warden got burned in the FTX fall out.

coinfeeds-bot

tldr; Sam Bankman-Fried, the former FTX founder sentenced to 25 years for financial fraud, has been moved to Victorville Medium II FCI, a medium-security prison in California known for violence and gang activity. Dubbed 'Victimville,' the facility has a history of stabbings and assaults. Inmates must join racially-oriented groups for safety. Bankman-Fried, who maintains his innocence, will have access to an electronic law library and recreational activities like basketball and art while serving his sentence. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

antaran

The SEC was investigating FTX long before its collapse but "pro-crypto" politicans from congress like Tom Emmer (now heading the House's "digital assets" committee) were pushing hard to end this investigation.

WaitingOnPizza

It went down to 15k during nov. 2022. After FTX, I believe? If America would sort itself back out, I'm sure it'd recover (and then some). If America remains in the throes of fascism, however.. Then all bets are off. Another country or nation would have to become the economic powerhouse of the world. My money would be on China, but they're always just a few days and weeks away from another ban on crypto 😂

liquid_at

It's not uncommon that companies that ask to be regulated talk to the SEC, while companies who claim that downloading a form from the SEC website is too hard, don't. Coinbase are not even capable of finding a form that took me 30 seconds to google, but apparently a company that actually talks to the SEC about regulation is bad, because they want to be regulated? Audit Coinbase and Binance like they audited FTX and you'll see that they are not any better... They just had bribed the more powerful politicians, so they were able to control the narrative.

Character-Dot-4078

I find it pretty neat that gensler was meeting with FTX every couple weeks also at the time.

Character-Dot-4078

"The whole space needs purging, just like the dot-com bubble did" Seems like the entire market has been getting purged since the FTX and Terra collapse to me lol.

21Moto

Ask the guys that waiting for 14K and 8K when it was at 15.5K after FTX how waiting worked out. Time IN Bitcoin is better than timing Bitcoin DCA2BTC