11/15/2022: FTX Saga Continues
$400M+ user funds were *hacked*
When you think the FTX fiasco couldn’t get any worse, it just beats your expectation and gets to the next level worse! So many things have happened since FTX filed for bankruptcy last Thursday that I couldn’t keep up with all the shenanigans. But apparently, FTX was *hacked* after the bankruptcy announcement and at least $400M+ of FTX’s are drained from their on-chain wallets. As of now, the hacker has 228,000 ETH and other assets in their wallet. According to CoinTelegraph, the wallet draining is still ongoing. It’s hard to believe that this is an actual hack. This feels more like an inside job.
Over the weekend, FTX’s balance sheet BEFORE the bankruptcy filing was leaked. Apparently, they only have $900M of easily sellable assets but have $9B of liabilities. The rests is basically s**tcoins like SRM or MAPS and illiquid venture investments. With the $450M+ hack, it appears that HOOD 0.00 stock is the only high quality asset that is left to repay users. What a s**tshow.
Shockingly and not shockingly, according to a WSJ report, in a video meeting with Alameda employees late Wednesday Hong Kong time, Alameda CEO Caroline Ellison said that she, Mr. Bankman-Fried and two other FTX executives, Nishad Singh and Gary Wang, were aware of the decision to send customer funds to Alameda. It’s shocking because Ms. Ellison admitted fraud with a straight face to her team. It’s not shocking because that’s the only reason why they have such a big gap on their balance sheet.
Finally, yesterday New York Times published a *puff* piece about SBF. I don’t know what’s wrong with the NYT. But they portrayed SBF as if this debacle is just another typical silicon valley failure, which is completely false. This is a very obvious fraud as Caroline Ellison admitted to her team and hundreds of thousands of FTX clients lost their life savings. SBF even bragged in the article that “You would’ve thought that I’d be getting no sleep right now, and instead I’m getting some,” he said. “It could be worse.” I am speechless. All I can say to NYT and SBF is WTF???!!!
At this point, I am on the verge of losing hope in humanity. SBF is still not arrested and is apparently still trolling on Twitter. I am hoping for justice but it doesn’t appear that FTX customers and investors will get any. Sigh.
I really enjoy reading your posts Yun-Fang. Just thought I’d let you know :)