[whoooooo123]

I'm so lost. I'd never heard of this guy or FTX until a couple of days ago. Can someone give me a link to the best and (this is important) most succinct summary of what the hell happened here? Why did all this money vanish, and what crimes did SBF commit?

[pjc50]

1) FTX had a token they issued, but were booking this as an "asset". This is like issuing yourself an "IOU 1 billion" note and claiming you're a billionaire.

2) To obfuscate this slightly, they lent "$10bn" of tokens to Alameda Research, which was a "hedge fund" run by his girlfriend on the exchange

3) Alameda made huge trading losses, as often happens to novice traders. A Nick Leeson event.

4) Changpeng Zhao of Binance noticed there was a problem: https://fortune.com/2022/11/07/crypto-billionaires-cz-binanc...

5) This triggered a "bank run" on FTX

6) FTX are now insolvent: https://twitter.com/SBF_FTX/status/1591089317300293636

7) That was the last we heard from SBF. There are now reports that the exchange has been "hacked" and coins stolen. It is not yet clear by whom, or where SBF is.

[zajio1am]

Here is a detailed description: https://www.coppolacomment.com/2022/11/the-ftx-alameda-nexus...

[williamcotton]

You’re asking a mob with torches and pitchforks for calm-headed appraisal?