Is it possible that a big part of the money went into “other ventures,” and those just failed to the point of not being worth mentioning by name? (That’s not good of course, but it would be an explanation.)
The currently leading theory seems to be that FTX gave (loaned without appropriate collateral) a ton of the money to Alameda (which lost a lot with risky investments, possibly before FTX gave them money), but I have no idea how much money went to what other ventures.
“Ms. Ellison explained what had caused the collapse, according to a person familiar with the matter. Her voice shaking, she apologized, saying she had let the group down. Over recent months, she said, Alameda had taken out loans and used the money to make venture capital investments, among other expenditures. Around the time the crypto market crashed this spring, Ms. Ellison explained, lenders moved to recall those loans, the person familiar with the meeting said. But the funds that Alameda had spent were no longer easily available, so the company used FTX customer funds to make the payments.”
That is not the problem. Maintaining a billion dollar accounting in excel sheets is really unbelievable. In some sense there is that part of me that says this snapshot from that blogpost could be fake.
Sure, sure. My question was in response to the quote in the original article, not the format. Specifically, “FTX shot its customer money into some still-unexplained reaches of the astral plane.”
Is it possible that a big part of the money went into “other ventures,” and those just failed to the point of not being worth mentioning by name? (That’s not good of course, but it would be an explanation.)
The currently leading theory seems to be that FTX gave (loaned without appropriate collateral) a ton of the money to Alameda (which lost a lot with risky investments, possibly before FTX gave them money), but I have no idea how much money went to what other ventures.
“Ms. Ellison explained what had caused the collapse, according to a person familiar with the matter. Her voice shaking, she apologized, saying she had let the group down. Over recent months, she said, Alameda had taken out loans and used the money to make venture capital investments, among other expenditures. Around the time the crypto market crashed this spring, Ms. Ellison explained, lenders moved to recall those loans, the person familiar with the meeting said. But the funds that Alameda had spent were no longer easily available, so the company used FTX customer funds to make the payments.”
https://forum.effectivealtruism.org/posts/ZnhLAzQxSi9svpkLQ/the-ny-times-interviewed-sbf-on-sunday
That is not the problem. Maintaining a billion dollar accounting in excel sheets is really unbelievable. In some sense there is that part of me that says this snapshot from that blogpost could be fake.
Sure, sure. My question was in response to the quote in the original article, not the format. Specifically, “FTX shot its customer money into some still-unexplained reaches of the astral plane.”