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A comment on The Sam Bankman-Fried empire crumbled. What happened? (part one).

Re:The Sam Bankman-Fried empire crumbled. What happened? (pa... by jjmorrison on Thursday November 10, 2022 @12:55PM (#33550417)
Can someone explain to me why they can't solve this by moving the money back from Alameda to FTX? Assuming Alameda is not that bad at investing money, most of the loan should still be there no?
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Re:The Sam Bankman-Fried empire crumbled. What happened? (pa... by mjaques on Thursday November 10, 2022 @01:31PM (#33550974)
This is exactly what I was wondering.

It's possible (likely) that Alameda has invested that money in iliquid assets or assets that have since lost value. Also, since the loans of FTX to Alameda were backed by FTT, which has since collapsed, even if FTX makes a margin call, the collateral has a fraction of the original value.

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Re:The Sam Bankman-Fried empire crumbled. What happened? (pa... by benjaminwootton on Friday November 11, 2022 @01:14AM (#33557828)
The noise is that they used it for the summer bailouts. I suspect a lot of this $8 billion will turn out to be illiquidity rather than vanished into the ether.
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