Itâs the sort of thing from my time at Alameda I couldnât imagine being missed or ignored by anyone there
I donât understand how it can simultaneously be true that 1) ARâs balance was easily visible, 2) ARâs balance was very negative, and 3) people believed ARâs balance to be positive. Do you understand this?
This realization seems to have been spread over several months
Thanks, I have updated my comment to say âSometime in 2022â.
I donât think either the CFTC or the team handling the bankruptcy have offered any evidence that this was the case
Thanks, I have updated my comment to say âmy impression is that these valuations were not done rigorouslyâ â let me know if you think thatâs still incorrect.
I personally havenât yet come across any statements that seem to be claiming anything other than âFTX itself doesnât invest customer depositsâ
This is what happened though, isnât it? Customers deposited fiat into North Dimension, and through the fiat@ glitch, that fiat currency was invested in various things.
I donât understand how it can simultaneously be true that 1) ARâs balance was easily visible, 2) ARâs balance was very negative, and 3) people believed ARâs balance to be positive. Do you understand this?
I mean...I just think 2) is probably false. Nishad messed up in his testimony and some information that undermined the prosecutorsâ story slipped through. He also refers to FTX credit lines as nonwithdrawable, âQ. Iâm going to ask you some more questions about line of credit in a bit, but just at a high level, what is a line of credit? A. Itâs a nonwithdrawable dollar amount thatâs granted to allow for easier trading without actually having to deposit as much money.â How is a credit line supposed to help them steal funds if the funds canât be withdrawn from the exchange?
Now if we assume Gary wasnât lying when he read out that ARâs main account on FTX was negative $2.7B in June 2022, I guess itâs still possible that when the prosecutor asked the question, they were pointing at the sub-account that was also helpfully named âinfo@alamedaresearchâ, or at the main accountâs balance in a particular coin. (It may not have even been deliberate on the governmentâs partâthereâs a point when one of the prosectors seems to not understand that thereâs a difference between ARâs net position on FTX and ARâs balances in different coins.)
âmy impression is that these valuations were not done rigorouslyâ â let me know if you think thatâs still incorrect
That seems fine to say. I think we just donât know either way, as the team handling the bankruptcy doesnât appear to have given anyone access to the original versions, so we just have SBFâs (and Garyâs?) memory of the rough figures and John Rayâs protestations that SBF is deluded.
Customers deposited fiat into North Dimension, and through the fiat@ glitch, that fiat currency was invested in various things.
Was invested by Alameda, not FTX. FTX customers invested each otherâs deposits all the time. And, if you believe the defense, FTX didnât know what this customer was doing until it had already happened. I think FTX and Alameda are treated as effectively the same company or completely separate entities depending on the context and whoâs speaking (I think both âsidesâ are guilty of this), when the reality is somewhere in between.
Thanks!
I donât understand how it can simultaneously be true that 1) ARâs balance was easily visible, 2) ARâs balance was very negative, and 3) people believed ARâs balance to be positive. Do you understand this?
Thanks, I have updated my comment to say âSometime in 2022â.
Thanks, I have updated my comment to say âmy impression is that these valuations were not done rigorouslyâ â let me know if you think thatâs still incorrect.
This is what happened though, isnât it? Customers deposited fiat into North Dimension, and through the fiat@ glitch, that fiat currency was invested in various things.
I mean...I just think 2) is probably false. Nishad messed up in his testimony and some information that undermined the prosecutorsâ story slipped through. He also refers to FTX credit lines as nonwithdrawable, âQ. Iâm going to ask you some more questions about line of credit in a bit, but just at a high level, what is a line of credit? A. Itâs a nonwithdrawable dollar amount thatâs granted to allow for easier trading without actually having to deposit as much money.â How is a credit line supposed to help them steal funds if the funds canât be withdrawn from the exchange?
Now if we assume Gary wasnât lying when he read out that ARâs main account on FTX was negative $2.7B in June 2022, I guess itâs still possible that when the prosecutor asked the question, they were pointing at the sub-account that was also helpfully named âinfo@alamedaresearchâ, or at the main accountâs balance in a particular coin. (It may not have even been deliberate on the governmentâs partâthereâs a point when one of the prosectors seems to not understand that thereâs a difference between ARâs net position on FTX and ARâs balances in different coins.)
That seems fine to say. I think we just donât know either way, as the team handling the bankruptcy doesnât appear to have given anyone access to the original versions, so we just have SBFâs (and Garyâs?) memory of the rough figures and John Rayâs protestations that SBF is deluded.
Was invested by Alameda, not FTX. FTX customers invested each otherâs deposits all the time. And, if you believe the defense, FTX didnât know what this customer was doing until it had already happened. I think FTX and Alameda are treated as effectively the same company or completely separate entities depending on the context and whoâs speaking (I think both âsidesâ are guilty of this), when the reality is somewhere in between.