FTX Crypto Exchange Replaces CEO & Files For Bankruptcy Protection | FNF Recap (11/11/2022)



FTX is a cryptocurrency exchange based out of the Bahamas and founded in 2019 by Sam Bankman-Friend (SBF). FTX peaked with over 1,000,000 users and was the 3rd largest crypto exchange by volume. FTX faced liquidity issues and, despite the assurances of SBF, filed for bankruptcy relief under Chapter 11 of the U.S. Bankruptcy Code on November 11, 2022. In the days leading up to FTX’s bankruptcy filing, it’s founder and then-CEO took to Twitter to express his apologies for the current state of affairs and ensured the world that things would be just fine.

NOTE – this is a developing story, which I will be following closely. The information in this video depicts the situation as we knew it on November 11, 2022. Stay tuned for updated information.

Friday Night Frenzy airs weekly on Friday at 8:00 PM EST, covering major stories impacting the legal community. You can watch the full episode from 11/11/2022 here: https://youtu.be/zSHie9W__UA

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THIS VIDEO IS FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY AND IS NOT TO BE CONSTRUED AS LEGAL ADVICE. PLEASE CONSULT WITH COUNSEL IN YOUR JURISDICTION.

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23 thoughts on “FTX Crypto Exchange Replaces CEO & Files For Bankruptcy Protection | FNF Recap (11/11/2022)”

  1. I love the innocence of Ian. "At least my mortgage is in the same currency so the bank gets hosed. " No, when inflation goes nuts they run to the government and the government gives them a bailout. Part of that comes from them printing more money and making it worse, part of it is your money that they raise taxes for.

    As far as how is my crypto doing? All total, about 23x what I put into it. The only investment that did better was a 3.25 pack of magic cards bought back in the 90s that had an alpha black lotus in it. Sold today that's 3.25 to over 500k. Crypto hasn't quite done that, but it beats real estate bought in 2010 and that's saying something.

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  2. Re Ian’s “I’m coming over” to Rob’s stacks comment, being a Canadian with a friend in Virginia I know that distance and am laughing far too hard at the mental image of Ian running over 😂

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  3. So Ian wants to drive to the Bahamas to empty a can of bear spray on a guy who will have the SEC and Agriculture dept (FTX was deeply into futures) looking hard at him…(and his apparently amphetamine boosted dating and cohabitating life with the whole C suite of two companies living situation which may become legally relevant for questions of control and company distinction etc)…I'm not sure If I want to watch the legal case or a sitcom based on it.

    as big as this is the most likely place where actual issues come down will be in their presentations to investors much like Theranos.

    The clawback issues will be interesting since if they can show Alameda was broke back in the early summer (around Terra/Luna and the Voyager bailout) when FTX gave the backdoor loan (potentially of customer assets w/o informing anyone and against their own TOS-which said that they WERE NOT betting with customer money) then any payouts from that point are fair targets of clawbacks right? That's what is going on with the Giardi fiasco atm. Who is on THAT list for could be interesting.

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  4. I'm glad I didn't dip too far into the NFT craze in the design community. It's all the rage right now. I made one NFT to see how it works, but didn't go further than that. This SBF guy is scary. Very scary!

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  5. I kept wondering if Runkle's ignorance of crypto was due to his irrational hatred or if the hatred was due to the ignorance. Then the shoe dropped. He's lost money. The ignorance came first.

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  6. “Just listen to your financial advisor” — Rob might as well also suggest: “listen to your doctor and get that 4th booster”

    Just because regulators has the power to regulate doesn’t mean they understand the subject matter or the nuances of how fraud happens , recall that both Enron and Madoff were surrounded by regulators and their industries were well regulated at the time they committed fraud. Worst, FTX suggested crypto markets should be regulated reasoning that they’re the only one trustworthy but others aren’t—which is basically the same strategy of Enron and Madoff.

    Disappointing that Rob is so willing to kneel at the alter of governmental regulators and so-called experts.

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  7. "There are ppl in the chat young enough that they don't know what Enron is" lol

    That was a highlight reel moment

    I am in crypto grps and v much involved in crypto Twitter. 😎 So, this is very interesting to hear you all, who I respect and came to adore, taking about this… and for not being involved in crypto, Rob, you are v astute about the gist of it in regard to sec. I'm interested in hearing more if your coverage

    Usually I can't listen to more than a minute of non crypto trying to cover crypto

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