I'm not saying that to say the sub was good. I think the guy's conclusions are probably right but he seems to just be roughly catching up on things at the last minute and missing lots of important info, so not a good source on it.
FYI I'm pretty sure large losses claimed in initial filings are a standard way of demonstrating to the court that a matter is weighty enough to occupy the court's time.
Large claims also have a role in bringing attention to the plaintiff's complaints.
The $27B figure doesn't dictate how much money could eventually be awarded or - indeed - whether the suit will be successful at all.
Other posters arguing for tort reform based off've this headline should have another think.
My favourite unsubstantiated theory about FTX is that its fraud was a solution for Tether's liquidity and banking woes.
Twitter user Bitfinexed has speculated that Alameda Research's losing trades have counterparties that are associated with Tether and that the trades acted as a means of funnelling money into the struggling stablecoin.
He further alleges that Tether have been heavily minting coins to wash trade and inflate crypto asset prices. The liquidity from FTX would have been used to cover withdrawals by Tether customers since the start of the bear market.
I'm not qualified to assess the veracity of these claims but Bitfinexed has called a number of scams and collapses in cryptology before they have come to pass.
Wouldn't Occam's razor suggest that a less coordinated alignment of interests is more probable?
I.e., people who own a lot of heavily minted scam-coins want to diversify as their exit strategy, and the most liquid alternatives are other scam assets (coins, companies, NFTs).
> Bitfinexed has called a number of scams and collapses in cryptology
Ahem. Let's keep cryptology as meaning the academic study of cryptography and cryptanalysis. ;-)
Yep. I'm from a region that grew sugarcane historically but is moving to tree crops like nuts.
Local 'big name' family is voracious in their consumption of government grants. They're not struggling by any means but they've got application writing down to a fine science.
https://youtube.com/watch?v=4dka29FSZac