one thing i keep hearing...

scam bankman fraud got famous 10+ years ago from arbitraging funds from us exchanges to a japanese exchange..
translation: he had funds in MTGox

i wonder how much of the MTGox bankruptcy has SBF funds because if he was making millions in 2012-14 that means there might be many btc hauled up in MTGox release coming soon(a few XX thousand coins back then= a few X thousand now.. possibly)

also when he acted as the liquidator as oppose to the liquidated. he bought up many defunct businesses where even though defunct businesses had alot of 'paper'(on the books) fiat debt, which it counldnt honour. those businesses still did have assets. which part of liquidation is to shift about and move. so im sure he has assets in those companies shuffled in to some side-pot stash somewhere

i hope that the regulators and investigators dont just look at the actions of "customer funds" of ftx 2022. but look at all the asset shuffles over the many years and link all hidden stashes of SBF

Nah, you got your wires crossed.  He didn't have an mtgox account. I don't think there is any public evidence of him having any major interest in Bitcoin prior to 2017.

When they started promoting him in 2020 they claimed that the source of his claimed >10 billion dollar wealth was arbing Korean bitcoin exchanges in 2018-2020.  People quickly pointed out that this would have been obviously impossible so they quickly changed the story to Japanese exchanges-- which also didn't make sense given the amounts but at least some arb was possible there. You can still see evidence of the earlier lie if you google his name and the phrase "kimchi premium".

From recent disclosures we now know that indeed they never made money arbing Korean exchanges, and made a couple million "arbing" in Japan-- but mostly from the value of Bitcoin going up rather than the spread-- and they quickly lost it.

So the arb story was just a lie to build a fake wealth story to encourage other people to invest in his 'business'.

Careful with what you read there-- SBF gave liberally to media outlets and many of the people writing about him took money from him or are connected to parties that did.  At a minimum their ego is on the line: They could have easily called out the red flags early on but instead they breathlessly promoted him, so now they really want to spin that it wasn't obvious and that it wasn't necessarily intentional.  Plus no one in the media gets sued for sucking up to a scammer, but people do get sued for calling them out.  Really when you look at the facts without the spin why you find is that FTX was running a shitcoin casino, promoted on the back of fraudulent claims of wealth, that went massively short bitcoin long shitcoin (including through selling retail customers paper bitcoins that FTX never owned) and then suffered the predictable results.

Spinning it as just poor accounting makes zero sense because it provides no explanation for where the 8 billion in customer deposits, plus SBFs >10bn in claimed trading gains, plus several billion in outside investments actually went if it was just due to accounting errors.

Not so easy, if he stood up to expose the real mastermind behind the downfall, his life would be in danger. Once you get involved in politics, your life is no longer in your hands. It is important to note that in this case, the SBF remains the beneficiary, so there is no reason for him to betray those who back him. I wouldn't be surprised if in the future SBF gets involved in politics and becomes a politician of the US.

You sure are not the only one who sees that there are a number of users who could be part of the DCG family in the forum and they seem to side with the FTX vs Binance competition.

They literally apply the "if you can't beat them, join them" strategy which they could then be controlling the industry where we're going back to the old market dominated by big bad wolves.

On the contrary, putting the bad guy in jail will not change anything, people's confidence in businesses is all about the environment of the business, not the already known perpetrator. The question is, are there still people like BSF in the crypto world, such should be fished out and sanity/regulation should be enforced to achieve the people's confidence. Binance has started by showing proof of funds, others should follow suit, which is one of the ways that people's confidence is boosted, not by jailing just a man that would not restore any money to the cryptosystem.

Even if it doesn't do much to alleviate public confidence, it's still preferable to make an example of the perpetrator.  It could potentially reduce the number of copycats if the repercussions give them pause to think twice.  Or, at the very least, people won't believe there are zero consequences for ripping people off, which is what they risk occurring if they don't lock that scumsack up.

It is also very much similar to those centralized services like Blockfi which are really just custodied cryptobanks.

However, because these centralized, custodied cryptobanks and exchanges will always continue to exist, would it not be time for the bitcoin community to accept and encourage the research on Defi and other noncustodial methods for swapping and yield generating services? This would at the very least make of use the advantage of self custody.

With all due respect, I would never put Binance and FTX on the same level, we're talking about two completely different exchanges and persons behind them. SBF came out pretty much from nowhere and in 1-2 years he already an exchange that was considered better than Kraken, Bitfinex, and other exchanges that have been online for a long time. I had some FTT but since the beginning everything looked too good to be true, with this young guy claiming to donate everything in charity etc etc. CZ makes a ton of money thanks to the commissions but he really bet everything on crypto and actually believe in them, SBF just used them to make more money, that's it, he never cared about this world.

Still putting the perpetrator behind the bar will have a good effect in the future.  It may not change what happened but it gives warning to people who are thinking of doing the same thing SBF did.  If the perpetrator is still on loose, then many scammer will just do the same thing because they will think that authority won't mind them scamming people everywhere.


There are lots of people like SBF waiting for the right moment to prey on their victim.  So making an example of SBF will shoo them away which means a cleaner healthier crypto ecosystem.


Proof of reserve has long been due.  Centralized exchanges should have done this thing from the start.  But yes, better late than never.  I hope all of crypto exchanges will follow the example of Binance in term of implementing proof of reserve for the their client's peace of mind sake.

I understand your resentment, but putting a bad guy in jail is unlikely to get your money back. Also, I support the opinion that any wrongdoing should be held accountable and, if necessary, there should be punishment. The question of what it will be and whether it will be at all in the case of the founder of the FTX remains open. Can you imagine that Sam Bankman-Fried will get off very easily? This would infuriate a lot of his former clients.

I understand that Bankman stole your money, but you yourself gave it to him. It's as if the world is facing a crypto exchange crash for the first time. This happened repeatedly and all users should have been aware of this and anticipate the possible risks. You have been warned repeatedly about the great risk of holding currencies on centralized exchanges. You neglected caution, for which you paid. This is a painful lesson for both you and new users. Don't let history repeat itself.