why no threads on crypto collapse?

I'm the FIRST to confirm that I know nothing about this subject, but it seems SOMETHING is going on...

No surprize-ponzie schemes always collapse.

I heard that the company involved funneled billions back to the dems from the ukraine.

Everyone is waiting for Jbyrd to explain.

Here is one article on it

https://www.thegatewaypundit.com/20...ongdoing-will-find-10-big-guy-joe-biden/

I figure same as Boco. People are purty darn gullible.

Just another scam that finally went south.

looks like bit coin still has value

Yep Warrior has it right. All bitcoin is a scam .

They took that word out of the dictionary eh.

Bitcoin wasnt the problem. Problem was the companies involved, Alameda Research and FTX, which were sister companies I'll post some more stuff later
.
Article doesn't explain anything

It's a lot more simple than the conspiracy theories.

It' called wire fraud, among other things. DOJ will prosecute .......probably and the Big guy might even get a cut. Lots of possible charges but wire fraud would be the easiest to prove.

It has nothing to do with bitcoin being a scam or not. Fried the founder of FTX used investors dollars to fund His trading operations in Alemeda Research. A big NO NO using client funds for proprietary trading.

Occam's Razor

The problem here is that FTX and boy genius just straight up stole money, it has little to do with crypto except that it was the form of currency. FTX leaders "borrowed" money from accounts, and made unauthorized transactions including a $10B loan.

For FTX they had a crypto coin they made, but you have to understand that its value is based on how many people "agree" to its value. Their crypto coin also had no use for the general market, it was only good to use on their exchange. Imagine every bank having their own type of dollars, you can only spend them there but you get a better APR, a discount on trading fees, etc. You can understand that at the end of the day, those banks who have their own dollars, those can only be worth so much because they have limited to no use.

Ok so what FTX did was unauthorized use of customer funds by loaning a company named Almeda, which in my opinion is one and the same. They loaned $10B to Almeda using customer funds which is illegal, they also used their own coin to "pump up or obtain a higher valuation". A report came out detailing this, everybody freakes, the 3 biggest holders of FTX's own crypto coin, sold off everything, prompting everybody else to do so. So now remember I said FTX used their own crypto to get a high valuation? Well now that crypto is worthless, and they dont have enough fiat currency or dollars to cover all of the withdrawals. This prompted the bankruptcy, and it just is garbage management, not really a fraud scheme unless it comes out that those funds at Almeda were laundered somewhere.

Crypto is not some complex thing, the "good coins" all have purposes. Like 1 type.of coin you can use for bandwidth, another you can use to surf the internet anonymously, another is used to send money instantly anywhere in thr world, without having to pay all sorts of fees. There is a bunch of different types too, the only true "crypto" that is used for investing is bitcoin, but crypto is not really meant to be invested in. For the last example of sending money, the coin is called Algorand. The way it works is there is a computer program made for every crypto, algorand included. Every single crypto coin has a unique serial number, that we can look at every transaction made using that 1 algorand. So when Matt sends warrior $10 bucks in algorand coins which would be 1000 algorands(just for this example .10 cents = 1 algorand), that transaction gets recorded in the computer program. Now we have to make sure that transaction is legitimate, so that nobody can try to "double spend" the 1 algorand. The way this happens differs among crypto coins, but the basic premise is complex math problem get solved by another computer. This is what is commonly known as "crypto mining", when that computer solves the math problem, the computer program rewards that computer by giving it say half an algorand. The next step is that this confirmed legit transaction gets recorded in the transaction ledger, every single coin, every transaction. So just imagine being able to see where a quarter(25 cents) has ever been spent, used, deposited, etc. This is what the ledger is for.

Ok now that we are tracking just the basics, how does warrior get actual dollars or USD from the algorand I sent him? Well he has a computer program software wallet that holds his algorand, he must go find a crypto exchange, send his algorand to that wallet on the crypto exchange(coinbase, kraken, binance, FTX used to be, etc) After that warrior has to sell his algorand for USD at whatever the market rate is. Lets say in the 5 minutes that all of this takes, algorands are now only 9 cents usd per algorand. Well he is only gonna get $9 dollars, but it also can be that it went up to 11 cents per algorand and he will get $11 dollars. After he gets his USD, he can have a check mailed, paypal transfer, EFT in some cases, bank wire, etc. This is how every basic crypto coin operated, nobody who "uses" crypto uses them for investment purposes, but just like companies if a crypto does good and is useful, people will hold it just like stocks to a degree. The main difference and purpose of crypto is that you shouldnt have to have the gov regulating every move, and things should be as decentralized as possible. There is only one true "semi anonymous" crypto and that is monero.

What I like to do is take crypto for some gun stuff that I sell during the offseason of trapping and hunting, and I do have to pay taxes, but there is NO customer record unless its a legit gun purchase. The federal government cant just hit up monero like they do for mastercard or visa. They are able to see like the date and time when get the monero, but nothing else with how I require it. So it does pay to do some research and try to understand it, but just understand each crypto coin has a purpose that has nothing to do with investing.

And Tom Brady promoted it. . .

Interesting analysis Matt. I still would never trust something I can't understand and even with all the nice explanations of how it works I cannot wrap my brain around any of it.

I still use checks.

appreciate the explanation, MattLA.

I thought crypto was so secure that No One could break the "block chain". If that is true, how did he illegally use others' funds for his own use?

You can't break the block. You can however get access to the keys. Its like getting your CC card or bank account number.

Funds were generated from fundraising through selling FTT tokens, the native crypto of FTX. Think of FTT as shares. People handed company money, company made bad bets, got exposed and selloff ensued.

I told all you guys a few months ago something like this was going to happen with the crypto.
You all know I am very seldom wrong-you need to pay attention.

One company colllapsed, really hasnt been a market crash.

but 130 other associated companies have filed bankruptcy. That will have a long-term impact

Exactly White. Many to follow. No regulation. I suspect there will be regulations now. Crypto will be under a microscope.

Once the worldwide shortage of adderall gets fixed, the crypto market will come roaring back

Thats true but its not Lehman's

let's hope not

SoftBank lost 4 million out of there portfolio. Maybe not much in some peoples eyes. Unless it is yours

The state of AK lost 214 million

Ya think



Bitcoin survived Mt. Gox, it will survive this.

Get out NOW.Before the Chinamen own all your money.

FTX has co-ceos.

One of the gave 40 million to Democrats the other gave 23 million to republicans.

Influence pedaling at it's finest

He didn't break the chain. He just did what many an unscrupulous stock trader has done. Floated client funds to swing a deal that went south.

yeah . It's bad PR for crypto in general but has no specific impact on Bitcoin. Just plain old criminality

appreciate that (you, too warrior); but if it's not any safer from abuse (and about to be highly regulated by .gov, it seems); why use/invest in it? what are the advantages over traditional currencies?

I know about as much on crypto as I do on stocks.

Theoretically crypto is tied to a finite commodity within the net much like gold used to be the standard for currency.

As such it is supposedly free from artificial manipulation like fiat currency or stocks. And it is supposed to somehow exist outside of the reach of the various nation states as a physical commodity that can be hoarded or dumped.

Leaving cryptos on exchanges isnt smart for long term investing. You can take your cryptos offline and dont have to worry about them as long as you don't throw them away or forget your leys. You can travel across the country with millions of you had it in crypto on a thumb drive easier than you can with cash amd not be treated like a drug dealer.

I don't think it's ever been said of crypto that its immune from market manipulation. Anything thats traded can be manipulated. That's the drawback of Bitcoin and others going mainstream with investment banks getting invilved is that manipulation has gotten worse, especially when High Velocity Traders get involved. Bitcoin and others can be devalued because there's a set amount that available. Not all cryptos are set, IE Doge, algorland, et al.

Frozen orange juice !! ...My favorite movie

So how much $ are we talking about that investors lost? Where/whom did the losses go to?

Millions if not billions

Ok, just to make sure everybody understands. The crypto block chain 100% can be broken, there are no cryptos that I know of that are immune, it would defeat the entire point of crypto. Remember the transaction ledger and the crypto miners solving the math problems to confirm and record each transaction? Well imagine there are only 100 people crypto mining the crypto coin you want in a perfect world for all of those people to belong to different groups or organizations. The reason is because say 55 or 60 of those people want to go rogue, they quite literally can mess with the transaction ledger and change it completely. Now understand that the crypto coin owner along with the rest of the crypto miners are going to fight this hardcore, and they do. There have been a few incidents where this has caused people to lose money, but there are a lot of safe guards against that now. So bottom line is that you never want too much of one group to be confirming transactions, its better for everybody remember decentralized is king.

So since you asked about FTX, exchanges dont "really" do all the wallet and blockchain transactions like they should. The only time it really happens is when the crypto leaves your wallet to the exchange wallet or any crypto leaving the exchange. So what that means is if you send algorands to the coinbase wallet, until that crypto leaves coinbase, everything you see on your screen is more or less fake or not really representative of all the actions that "look" like its taking. I dont 100% know the exact method of what FTX did, but I assume they moved everybodys funds that was already into a FTX account, to another FTX account, then they sent those to Almeda for a loan. In theory if you were just tracking your own crypto coins, you definitely would have been able to see on the transaction ledger when they went from FTX to Almeda. The likelyhood though is so low and remote, because again your wallet still reflects the correct amount of crypto coins. Even if you wanted to sell them or move them off, FTX likely had enough actual capital to let you make that move. However once news hit, and the selloff of FTX's crypto, they are basically stuck up a river without a paddle because they dont have the required money for people to selloff FTX's crypto for the value its worth. It sucks because these guys are morons, and just like it was said here, you never keep your crypto on the exchanges for that vary reason among other things.

There was no hacking or phishing for wallet passwords as far as I know, recommendation is always to write your password and recovery seeda(just words to restore your wallet if you forgot your password)on a piece of paper that you keep in your safe deposit box.

Favorite movie?

Its the biggest Ponzi scheme in US history. It Makes Berny Madoff look like a saint.

So what really happened is Ukraine was using US aid and partnered with FTX( to invest our aid money in crypto) to then donate our aid back to the democrat party.

Its actually money laundering.

Trading Places

Yup, to put it plainly in simple terms. The democrat party assisted by the republican party takes money out of our pockets in the form of income taxes deducted each week from our paycheck.
This money is then sent to Ukraine, or plug in the cause of the week, Ukraine then buys/invests/spends with entities connected to the democrat or republican party by means of social/donor or family class.
These entities then in turn "donate" a portion of the proceeds to the democrat or republican party in the form of campaign and PAC donations to ensure the right individuals get elected or reelected to keep the gravy train going.

WE the people are being stolen from to enrich the powerful elite.

The very thing Eisenhower warned us about long ago.

Didn’t crash? 67,000 down to 16,000 !!! What would you consider a crash !! For you percentage driven investors what percentage is that loss !!!!

Not to single out anyone but was wondering if the 100,000 value will be reached THIS January since last January didn’t happen? I read one article that said Bitcoin would teach 1 million in 3 years If it does the Lotd just needs to come on back finish mankind’s run because he’s too stupid to deserve to exists!!

Dude, learn about context, or better yet just stay out of these threads. A 10% drop in a week is not a crash.

Nope not this January and seeing as you are calling me out I didn' say it would last January either. Just so eople who are reading know, what I said is it wouldn't surprise me if it did.

Trading Places....Eddie Murphy

That is pretty much what happened. FTX moved client funds into FTX wallets and then loaned those funds to Alemeda. The wire fraud rears its head at that point because FTX terms of service clearly state that no client funds will be or may be loaned without client's express approval. Since this TOS is posted electronically within the USA it constitutes wire fraud because it is obviously a false statement. IT also gives the DOJ and the SEC jurisdiction to investigate and prosecute

Yeah, well its unfortunate, but again for crypto you just dont really need nor should you store your coins on the exchange. Now there is some money laundering deal, I havent seen any real evidence of that, it is suspicious that there does seem to be a lot of conflicts of interest here. However, no matter what way you look at it, there almost certainly would be evidence buried in the transaction ledger. Even if we cant say 1 for 1 in terms of this dollar was exchanged for , amount of crypto coins with the serial number, we can use a general date range to track things to see where they went.

We can even look at it the ledger freeze frame really, and just sew whats going on. There are a few ways that I know of that you could technically launder, but imo there are enough "things" that LE could piece together to figure it out. Really if it did happen, I guess the tax benefit could be worthwhile but maybe thats it. Again obviously if it did happen, both parties are guilty according to the donation records.

BINGO!!
Worth the watch, even a Madoff involved...

Stray missiles now landing in Poland????

Convenient timing??

Quick, send another 50 billion!!!!

I figured as much. It's hard to come of as sarcastic on the web. Maybe I needed more exclamation points and a couple LOLs.

Their balance sheet had a line item that said "Trump lose". That kid was the second biggest donor to the Democratic party this year. Not hard to draw conclusions.

Ol dad

I dont get why people would put any large amount of money in any bank or other wise So you really trust them? Look like your the sucker. In the end. When everything crashes. And society falls apart. It will be the person with the most guns and ammo That is the most wealthy. Remember I said that ! LoL!

You certainly cant travel with large sums of money without getting arrested. Actually you'd be lucky if they arrest you, these days they just take it without charging you and good luck getting it back.

I travel with large sums of guns ! LoL !

Administration wins TWICE with this setup.
Once, as illustrated below.




And secondly, as an example that CRYPTO IS BAD, as they have been trying to reign it in, since they can't control the flow. And then roll out, the Official US digital currency...

This story fits right in with democrats if I heard right.

The kid uses the name "Bankman"?

He and his employees which totals ten, all date each other and are staying at a brothel?

The dems are mum about him going bankrupt months afters he gave millions to democrats, second highest to only Soros?

Guess he bought the right ones off that he isn't getting the Trump colonoscopy?

Read up on this outfit. The #2 guy in the company was a republican donor. Donating to the McConnell wing of the party.

The swamp is deep.

Sounds like FTX funded the BS study that shot down invermecton as an effective medicine too fight Covid

kid had his fingers in everything

The cheeting worm just got named in the lawsuit filed very recently. Let’s see if this pay out costs him more than his divorce did.