Re: Proof of reserves? Insurance fund? Best I can do is a random number generator!
It really amazes me that such a company could even do business in the US, because what we are seeing now, someone should have noticed and reacted earlier and prevented everything from going to hell. How realistic is it that no one knew about all these illogicalities within FTX until it was too late, isn't there someone who oversees such things?
A bit late to reply but there is one thing I must mention!
Us, Japan, EU, south whatever, there is simply not enough workforce to monitor everything, and these companies know it, you can't have a million supervising a million companies, they all have to do with the numbers these provide, and even if on inspection they find a flaw that will be discovered only after a trimester and then real action will take further months.
Besides, the major fuck up was not even over ftx.us but com, which was not US jurisdiction, in September 2021 was based in HK and then in the Bahamas, just like how CZ keeps binance.us clean so did SBF.
It's worse than that - we know for a fact that Tether doesn't have the assets it claims to have. They revealed in court that at one point only 14% of USDT was actually collateralized: https://bitcointalk.org/index.php?topic=5322147.msg56656992#msg56656992. They also admitted that their collateral includes loan repayments they are making to themselves after printing almost $1 billion USDT out of nothing and loaning it to themselves to stop themselves going bankrupt. So print USDT out of thin air, loan it to yourself, claim USDT is backed up by future loan repayments.
The situation is better now, probably because of the last bull run, not that they have proved beyond a doubt they have a 1:1 backing but even if we ignore the parts of the audit that can't be trusted they do have at least 40% of those sums in treasury bills, that is the only sure thing they can't fake and can and has been checked, the rest, god knows and with their business practice I'm a bit unsure even he will be able to come with the right numbers.
My most recent favorite snippet from the trial below. Gary Wang was a the CTO of FTX and co-founder alongside SBF:
What an absolute clown show.
Quote
Lawyer: Are you aware of the difference between solvency and liquidity?
Gary Wang: Now I am.
Gary Wang: Now I am.
What an absolute clown show.
If he tried to be a smart ass, then he's an asshole, if he was sincere then probably this is just the tip of shitshow we're about to discover.