Crypto company deathwatch thread

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Not to worry. Sam Bankman-Fried has declared himself Great High Lord of CryptoBros says the worst is over. (A)

Sam Bankman-Fried, CEO of FTX, one of the world’s largest crypto exchanges, wouldn’t have an issue saving (even more) struggling companies amid the latest market downturn.

Bankman-Fried, who has already extended hundreds of millions in revolving lines of credit and been the center of takeover rumors, told Reuters that FTX still has a “few billion” to support the industry.
FTX has drawn from its $2 billion venture capital fund, FTX Ventures, to help shore up firms struggling with liquidity, Reuters reported. Though it announced the fund in January, Bankman-Fried noted that FTX still has enough cash to do a $2 billion deal if needed.
"It does get increasingly expensive with each one of these," Bankman-Fried said.
Bankman-Fried’s remarks on his remaining dry powder comes as many firms struggle to stay afloat due to the crypto industry credit crisis.
After the May collapse of the Terra stablecoin and surrounding ecosystem battered the already struggling space, forced selling and liquidity issues cascaded throughout the market. By early June, Celsius Network, one of the largest crypto lenders, paused its withdrawals, and soon rumors of bankruptcy spread. Then the sizable crypto hedge fund Three Arrows Capital (3AC) was soon on the brink of insolvency, fueling fears of industrywide contagion and systemic risk. Three Arrows subsequently entered a court-ordered liquidation outside the U.S., and filed for bankruptcy protection in New York.
Since these big dominoes fell, many companies have disclosed their collateral damage from the demise of Terra, Celsius and 3AC. And a few have reached out to FTX for help, Bankman-Fried told Reuters.
"FTX has shareholders and we have a duty to do reasonable things by them and I certainly feel more comfortable incinerating my own money," he said.
FTX recently reached a deal with distressed cryptocurrency lender BlockFi, which includes a $400 million revolving credit facility and an option to acquire the platform at a variable price of up to $240 million. Previously, BlockFi had disclosed that it had signed a term sheet with FTX to secure a $250 million revolving line of credit.
Quant trading shop Alameda Research, founded by Bankman-Fried, separately gave crypto lender Voyager Digital a $200 million cash and USDC revolver, or line of credit, and a 15,000 Bitcoin revolver. On Wednesday, Voyager filed for bankruptcy.
Despite the carnage, Bankman-Fried told Reuters he thinks the worst has passed.
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Now that he and CZ own everything, the decentralized universe is saved! Get a fucking haircut, Sam.

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Everyone knows "Reports say X people have an issue here are 3 tweets out of 5 total that prove it true" is absolute shit just trying to push a narritive. Looked in major crypto spaces, and it doesn't appear to be widespread.

Its either users being retarded, coinbase being coded like ass, or there was something about the transaction that got flagged that CB is looking into per the general banking frameworks.
 
ducktales4gameboy said:
Counterpoint : quake and Zelda 64 rtx ports. Other than that, agreed.

Personally I just want to score a couple decently beefy cards and mess around with a couple simple deep learning models in a fashion that doesn't involve renting time from google.
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Me too but I aint seeing shit for a good price, most of the minerfags seem to believe a used 2060 thats been mining 24/7 for years its still worth near new msrp, niggas be delusional, same with used 3xxx cards

Hopefully once the 4xxx launches prices will finally collapse, btc is stuck at 20k and the way things are going PoS on eth will happen before prices go back up so minefags better liquidate those GPUs before its all worthless ewaste
ditto said:
I just want crypto to return to its roots: a peer-to-peer electronic cash system.
PEER-TO-PEER
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Much like the internet crypto has been ruined by richfags speculators looking for money, they couldnt give less of a shit about the ethos
 
  • Celsius coughed up $223m worth of loan repayments last week to crypto lender Maker after a month that saw DeFi crypto firms in a tricky spot due to what Celsius called “extreme market conditions”. Now the fever-laden platform is applying a cool flannel to its forehead, restructuring its debt and reclaiming its collateral worth around $950m.
  • Aave and Compound have started to get their money back, too. Celsius also reduced its $258m outstanding debt to $235m to both protocols, helped kindly by the restructuring experts over at advisory firm Alvarez & Marsal and big-dog bank Citigroup.
  • Is the DeFi contagion cooling off? Hard to say, but with 3AC bankrupt and its founders allegedly AWOL, Celsius is certainly navigating the symptoms a whole lot better than the former. However, reclaimed collateral can later be sold on exchanges, meaning any dumping by Celsius to boost its liquidity may still have an adverse effect on crypto prices.

Where in the world are Su Zhu and Kyle Davies? Lawyers involved in the liquidation proceedings of Three Arrows Capital’s British Virgin Islands fund would certainly like to know because the hedge fund founders have not been cooperating in the proceedings so far and their current location is unknown.
  • In documents filed late Friday in the U.S. Bankruptcy Court for the Southern District of New York, lawyers acting on behalf of the creditors said the founders of the fund “have not yet begun to cooperate with the [proceeding] in any meaningful manner.”
  • The lawyers said that persons identifying themselves as “Su Zhu” and “Kyle” were present on an initial Zoom call, but their video and audio was turned off and they would not respond to questions posed directly to them, with only their legal representatives answering questions.
  • Lawyers for the creditors that visited Three Arrows’s Singapore office found it abandoned, according to court documents.
  • Concerns are mounting that assets belonging to Three Arrows, which are largely in the form of cash, crypto and non-fungible tokens (NFT) could be easily transferred.
  • Already, NFTs belonging to Three Arrows’s NFT fund Starry Night have been transferred to a new wallet for unexplained reasons.
  • The creditors are seeking to freeze Three Arrows’s assets. But first they are requesting the court to compel Three Arrows’s founders to list out the fund’s assets.
  • They are also asking the court to subpoena the founders and have them provide a list of company assets including wallets it controls, bank accounts, digital assets in its possessions, derivatives contracts, securities, accounts receivables and all company records.
  • A court hearing is scheduled for Tuesday morning in New York.
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So the question I'm asking is: how exactly do they intend to "freeze" these assets if they are in crypto? This whole thing just looks like a bigger and bigger watershed moment for crypto at large as time goes on. Hilarious irony that Celcius had to go to Citibank to help clean up the mess.
 
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Akashic Retard said:
So the question I'm asking is: how exactly do they intend to "freeze" these assets if they are in crypto? This whole thing just looks like a bigger and bigger watershed moment for crypto at large as time goes on. Hilarious irony that Celcius had to go to Citibank to help clean up the mess.
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So, there are a few ways that they would go about doing it: If its stable coins, that is pretty easy: Most have a blacklist function. If they know the address they just add it to the blacklist until you get right with whatever regulatory authority has requested it for whichever stable. It happens kinda regularly, heres one article of tether doing it a couple months back.


If its stuff like Bitcoin, on one hand its tricker, on the other hand it is less so: once the wallets are identified, no reasonable exchange is going to want to touch them and its a large enough sum that there is now way to fly under the radar or reasonably wash the funds. So, no exchanges, Tumblers don't have the moat to soak it up, and even exotic stuff like atomic swaps to monero don't have the liquidity to do it in any reasonable time frame. (also, as an aside, its why freshly minted bitcoin tends to sell at a premium. You can only trace it back to the block it was mined on)

It turns into a giant stack of money that you can't actually use. The funny part is that they have been around long enough to know that. I would imagine they are still in the "Lets deny reality some more and hope we can find someone in Russia who wouldn't mind getting added to the sanctions list" stage of grief

Akashic Retard said:
  • Celsius coughed up $223m worth of loan repayments last week to crypto lender Maker after a month that saw DeFi crypto firms in a tricky spot due to what Celsius called “extreme market conditions”. Now the fever-laden platform is applying a cool flannel to its forehead, restructuring its debt and reclaiming its collateral worth around $950m.
  • Aave and Compound have started to get their money back, too. Celsius also reduced its $258m outstanding debt to $235m to both protocols, helped kindly by the restructuring experts over at advisory firm Alvarez & Marsal and big-dog bank Citigroup.
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For the first point, their liquidation price is now ~2000/USD BTC iirc, but in doing so they also changed literally all their deposits into BTC. So while they aren't about to get liquidated, a bank run would absolutely fuck them because they don't have the alternate funds. To the second point, I am curious if you have any articles about this. I know AAVE for a fact (and would assume compound would work the same way) isn't a traditional credit lines like a credit card or mortgage: They are overcollateralized loans. You put collateral in, and you can withdraw up to a point of what you put in. So if you put in 10 BTC, and take out 10 ETH, the 10 ETH is worth less than the BTC you put in. If they become equal in value, you just lose the BTC you put up, aka, its not like AAVE would be out the money.
 
Akashic Retard said:
  • Aave and Compound have started to get their money back, too. Celsius also reduced its $258m outstanding debt to $235m to both protocols
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So there are still $235m that have to magically appear somehow
Akashic Retard said:
Where in the world are Su Zhu and Kyle Davies?
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Either getting a face transplant or fleeing from some mobster looking for his money
Akashic Retard said:
  • Lawyers for the creditors that visited Three Arrows’s Singapore office found it abandoned, according to court documents.
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Always a good signal
Akashic Retard said:
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"Unexplained" that stolen money its being moved around
Akashic Retard said:
So the question I'm asking is: how exactly do they intend to "freeze" these assets if they are in crypto?
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Cock and ball torture on those two would be a start
Akashic Retard said:
This whole thing just looks like a bigger and bigger watershed moment for crypto at large as time goes on
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Dont know, I feel that every time crypto is up theres a sort of amnesia among greedy retarded normalfags that drives them to fall for yet another scam again and again
Nol 2 said:
a bank run would absolutely fuck them because they don't have the alternate funds.
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We're in the midst of a worldwide recession if not a depression, the odds of a bank run are quite high IMHO
 
There is little resemblance with the white paper on BTC and what is happening today.

The white paper literally laid out an ethos and an idea to get away from the ridiculous traps of the Fractional system as well the circus that comes with it. BTC is used 99.999% for speculation and only 0.0001% for actual use as envisioned by the white paper.

So it really isn't hard to understand why a in-general brilliant idea is in big trouble. Like all monetary systems or forms of exchange, the systems themselves are fairly OK, it is the actors who twist them. No system is perfect but even the best system can look like a horror show when it is manipulated for other uses.

Every day that goes by that a margin call isn't made, but the loan is teetering on the LVR ratio is just another day that goes by whereby the entity owes a little bit more to the creditor and there will be a little less more when the customers wise up and and make a run on the joint in question.

I don't think there will be a crypto run, but if there is, so many - and I mean SO MANY people would be left holding the bag of coins no one is going to buy unless it is pennies on the dollar.
 
MadStan said:
So it really isn't hard to understand why a in-general brilliant idea is in big trouble. Like all monetary systems or forms of exchange, the systems themselves are fairly OK, it is the actors who twist them. No system is perfect but even the best system can look like a horror show when it is manipulated for other uses.
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The poorest most corrupt countries actually have tons of laws against tyranny and corruption, it just happens its all bad actors there so those laws arent applied IRL

Its the same with crypto, ever since btc showed real potential it got overrun with speculators and scammers. I actually avoided btc early on (like an idiot) thinking that it wouldnt go much further given that that early on (around 2011) the btc community was already full of shady fucks and I would be getting scammed

Turns out the threshold for the scam was much higher than I thought, shit just keeps going, the scam never ends
 
Cool Dog said:
The poorest most corrupt countries actually have tons of laws against tyranny and corruption, it just happens its all bad actors there so those laws arent applied IRL

Its the same with crypto, ever since btc showed real potential it got overrun with speculators and scammers. I actually avoided btc early on (like an idiot) thinking that it wouldnt go much further given that that early on (around 2011) the btc community was already full of shady fucks and I would be getting scammed

Turns out the threshold for the scam was much higher than I thought, shit just keeps going, the scam never ends
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I couldn't agree with you more.

And with investment firms lining up to get in on the act despite the corruption one has to think despite its chaotic nature that it is probably true it will rebound and rise again - but not because it is a used product at all, just because it is wonderful in speculation rather than use.

Would one get into AMWAY if one absolutely knew they would find suckers, and those suckers would find suckers absolutely assured? Probably. It seems to be the way of the world.
 
Nol 2 said:
lol Zhu Su came back to twitter... to complain about how he hasn't been properly treated by his creditors
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Is he really complaining that the liquidators should be buying his tard StarkWare token?? Jeez, the balls on these scammers.

Meanwhile at their office..
3ac.jpg
 
MadStan said:
I couldn't agree with you more.

And with investment firms lining up to get in on the act despite the corruption one has to think despite its chaotic nature that it is probably true it will rebound and rise again - but not because it is a used product at all, just because it is wonderful in speculation rather than use.

Would one get into AMWAY if one absolutely knew they would find suckers, and those suckers would find suckers absolutely assured? Probably. It seems to be the way of the world.
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the bitcoin saga was amazing back in the early 2010's.

It comes down to the idea that people perceive it as having a value its more an asset than a medium of exchange. the fact that the price is related to in dollars tells you that.

The first few years of bitcoin was like watching the evolution of banking happen being speed run.

Oh I have something valuable I ll keep it on my computer...oh no...someone stole my computer....I know I ll keep in on an exchange....oh the dude running the exhange didnt pay for percentant storage on his VPS and boom its all gone.

Oh hey this dude on reddit is posts alot about drugs and having a concert to teach world peace but he is barrowing and paying back btc at a huge return (ponzi)

10 years ago I saw it as a solution looking for a problem and sure enough there are use cases for blockchains.

But when you can net millions with photo of apes....I mean come on
 
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