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BeTheBall- t1_iwoyxuj wrote

Reply to comment by Sm00gz in FTX coach says executives were ‘UNDERSEXED’, denies rampant amphetamine use by Science_421

Here's how I understand it on a 40,000ft level.

He took $16B from people who thought they were investing in crypto on his "exchange" and gave it to another company of his. That company used it to make other outside investments. Those investments ultimately cratered and he was unable to cover people who wanted to sell/transfer the crypto they thought they had on his exchange. At that point he stole the last $600M from his customers' accounts, and is now on the lamb trying to avoid extradition back to the US.

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Sm00gz t1_iwozl9m wrote

Jesus christ, some of the posts are starting to make sense now.

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FatherOfLights88 t1_iwp1qn4 wrote

To add to the above, FTX offered "tokenized" stocks, meaning that a token was the same as a share of the company offered. I came as no surprise when it was discovered that none of the underlying securities had actually been purchased. He was just taking money and doing what he wanted with it.

This is part of a greater scam going on where all kinds of regulatory hoops are completed skirted in order to maintain a system that is more fraudulent than your worst nightmares have imagined.

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Sm00gz t1_iwp8bvj wrote

Makes me wonder why there weren't any safety guards but i don't know much if anything at all on the subject.

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FatherOfLights88 t1_iwp8qd1 wrote

The "safe guards" in place don't really exist to protect retail investors.

This will come across as hyperbole, but it's not. What you see going on in the world right now, the chaos, the blatant display of corruption in politics and business... that's nothing compared to the irredeemable cesspool that is the US financial system. It won't be much longer before that's laid bare for all to see.

The amount of blatant fraud, counterfeiting, and theft is staggering.

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Naughtai t1_iwtb9d1 wrote

bUt CaPitALiSM iS tHe oNLy sYSteM ThaT wOrKS!

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