Comments by "Mark Armage" (@markarmage3776) on "I didn't ever try to commit fraud on anyone: Sam Bankman-Fried" video.

  1. Nope, he answered it. You didn't understand it, but he answered it. Anybody who trade derivatives on FTX gets to loan other user's fund to trade as long as they put up collateral. This is legal, it's in the terms of service. Alameda put up their collateral using FTT tokens, and of course, when Alameda faisl, FTX supposed to use the collateral to pay off Alameda loans, but in this case, they can't. Because FTT tokens also fail when Alameda fails. So in short, Sam version is completely legal, it's risky, but it's legal. He didn't steal anybody's money. Terms of service allows FTX to use user's fund to loan out to other traders on FTX platform as long as they put up collateral. And it includes the risk of somebody putting really risky collateral.
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  2. Yeah, that's not how it works, pal. He specifically said in the interview that FTX US is maybe solvent, and he's no longer in charge of it. FTX International is different. His explaination is that Alameda Research was doing trading on FTX platform, trading derivatives and options, and such they need to put up collateral that they did not have. And if Alameda can't put up collateral, supposedly FTX has to stop Alameda trading activities and "liquidate" the assets, which means they keep all the collateral put up by Alameda. However, he said this did not happen due to lack of attention, that Alameda was able to kept trading on the platform despite not putting up enough collateral. It's a bit different, but in this case, it's actually legal. There are 2 scenario. Scenario 1: FTX wired money to Alameda directly and let Alameda uses such money to trade elsewhere, that is illegal, and by Sam's claim, it did not happen Scenario 2: Every "derivative trading", "leverage" on FTX platform uses other customer's funds in order to trade, and in order to do so, the ones who trade has to put up collateral. For example, if you want to trade ETH on FTX but you don't have ETH, FTX can loan you ETH of other customers if you put up collateral into FTX platform. This is legal and is in the terms of service. What happened supposedly is that Alameda traded on FTX platform using legal loans that they collateralized with FTT tokens, which is perfectly legal token to put up as collateral by market cap. But when the FTT tokens fail, Alameda trading options got closed out, but FTX can no longer sell the collateral FTT tokens anymore. This is a perfectly legal scenario In scenario 2, where does the money go? The money goes to the sides that were betting against Alameda. Not everybody loses money, money here is a fixed amount, other parties that bet against Alameda won big, you just didn't hear of them yet. Like in 2008 Real estate bubble, where did the money go? The money went to the people who built those houses and sold them off easily for quick money.
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  3.  @charlosrossi  No, I think your lack of intellectual capability is what makes you an idiot. It can't be fraud if it's legal, there's no such thing as legal fraud. Go study the law, kid. It's not co-mingling of user's fund, user's fund are supposed to be used to do that on the exchange. As long as you put up collateral on the exchange, you're allowed to take out loans from the user's funds, it's in the terms of service.
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