I think it was unlikely to be an honest mistake even when the last Matt Levine article came out, and things have evolved since then. I heard rumors that someone found a backdoor they used to transfer the funds without risk management people noticing. Also, the official company account tweeted that they were allowing withdrawals from the …
I think it was unlikely to be an honest mistake even when the last Matt Levine article came out, and things have evolved since then. I heard rumors that someone found a backdoor they used to transfer the funds without risk management people noticing. Also, the official company account tweeted that they were allowing withdrawals from the Bahamas only in order to comply with a request from Bahamanian regulators, and then the Bahamian regulator tweeted that there was no such regulation and they had never asked FTX to do this - I think this might have been a ruse to let insiders withdraw first without provoking suspicion.
A lot of this is still rumors but I would really really like to believe there was nothing outright illegal here and I still think there's a <5% chance that's true.
I think it was unlikely to be an honest mistake even when the last Matt Levine article came out, and things have evolved since then. I heard rumors that someone found a backdoor they used to transfer the funds without risk management people noticing. Also, the official company account tweeted that they were allowing withdrawals from the Bahamas only in order to comply with a request from Bahamanian regulators, and then the Bahamian regulator tweeted that there was no such regulation and they had never asked FTX to do this - I think this might have been a ruse to let insiders withdraw first without provoking suspicion.
A lot of this is still rumors but I would really really like to believe there was nothing outright illegal here and I still think there's a <5% chance that's true.
Ok, yeah that stuff sounds way more explicitly fraudulent instead of just stupid.
Thanks for the information.