Re:Crypto dominoes fall in the wake of FTX's collapse
by thedangler on Thursday November 17, 2022 @12:28PM
(#33642375)
Also interesting.
Is this the same thing.
https://i.redd.it/qofb7x8zmj0a1.jpg
Citadel Securities has in their books securities sold, not yet purchaed. $65 billion. How is this not the same thing ? lol
Re:Crypto dominoes fall in the wake of FTX's collapse
by rufusroflpunch on Thursday November 17, 2022 @01:18PM
(#33643188)
I would argue it's not necessarily a problem to have liabilities for which you do not have assets on hand, whether it's Bitcoin or some security. The difference between these two situations is:
1) FTX didn't even bother listing their customer liabilities on their balance sheet, unlike Citadel.
2) I would assume (hope) that Citadel isn't a completely fraudulent company without the capital to make good on those assets if delivery is demanded!
Re:Crypto dominoes fall in the wake of FTX's collapse
by pram on Thursday November 17, 2022 @01:43PM
(#33643569)
It's not the same because there are actual equities involved in a short sale, Citadel is just borrowing them.
They could obviously get completely wrecked, but the shares are real things.
Re:Crypto dominoes fall in the wake of FTX's collapse
by hanniabu on Thursday November 17, 2022 @06:51PM
(#33647725)
It is the same, it's the fact that you don't really own it or know if the 3rd party has it or has the means to get it. If you have the keys to the wallet you're certain of what you have and you have full domain.
Re:Crypto dominoes fall in the wake of FTX's collapse
by SamReidHughes on Friday November 18, 2022 @07:32PM
(#33665167)
They’re a market maker, so wouldn’t those be options contracts? The “securities owned” line would be other options contracts that hedge against them, no?
Users bought it but the exchange didn't have it, which is what the OP was saying. If you don't have the keys, you don't really have the coins.