The unimportant news thread

[Spotted Horses]

FTX thief cashes out millions during Bankman-Fried trial

https://www.bbc.com/news/technology-67090501

I'm surprised that the cryptocoin is still worth anything considering the charges against him.

PD

Cryptocurrencies are bigger than FTX.

In the end, it was a prosaic case of embezzlement.

FTX was supposed to be like a brokerage. You deposited your funds, you could trade for various crypto currencies, then you could withdraw your funds. They were supposed to make money on fees, commissions, mining, maybe some secure investments. But Bankman-Fried was also involved in a hedge fund, Alameda Research, in which Bankman-Fried and his genius friends were supposed to profit. But they turned out not to be geniuses, and they lost a huge amount of money. Rather than declare bankruptcy, they transferred customer funds from FTX to cover the losses. I have no doubt they thought that, being geniuses, they would make it all back and reimburse FTX before anyone noticed. But they turned out to be non-geniuses and lost even more money.

What makes it a crime is that the funds were transferred covertly. Apparently investigators found a bit of code in FTX's accounting software where transfers to Alameda were hard-coded and not reflected on FTX's balance sheet. The chickens came home to roost when they had transferred so much money from FTX to Alameda that FTX couldn't cover customer withdrawals.

This, by the way, is the individual who lost $8 billion.

[Pohjolas Daughter]

Cryptocurrencies are bigger than FTX.

In the end, it was a prosaic case of embezzlement.

FTX was supposed to be like a brokerage. You deposited your funds, you could trade for various crypto currencies, then you could withdraw your funds. They were supposed to make money on fees, commissions, mining, maybe some secure investments. But Bankman-Fried was also involved in a hedge fund, Alameda Research, in which Bankman-Fried and his genius friends were supposed to profit. But they turned out not to be geniuses, and they lost a huge amount of money. Rather than declare bankruptcy, they transferred customer funds from FTX to cover the losses. I have no doubt they thought that, being geniuses, they would make it all back and reimburse FTX before anyone noticed. But they turned out to be non-geniuses and lost even more money.

What makes it a crime is that the funds were transferred covertly. Apparently investigators found a bit of code in FTX's accounting software where transfers to Alameda were hard-coded and not reflected on FTX's balance sheet. The chickens came home to roost when they had transferred so much money from FTX to Alameda that FTX couldn't cover customer withdrawals.

This, by the way, is the individual who lost $8 billion.

Yes, his supposedly on-again-off-again girlfriend who was running Alameda.   And I suspect (highly) that she was in cahoots with her boyfriend.  She's testifying against him in exchange for leniency/shorter sentence from what I recall.

Are there many "brokerage firms" for cryptocurrencies?

According to the article that I had linked to, they believe that at least part of the *stolen monies out of the wallets is going to Russia...perhaps how they are managing to buy more weapons?  No idea.  I found it interesting to read that there are basically money laundering organization(s?) for crypto and it's hard to follow the electronic trail.

*20 million dollars worth being sold a day now apparently.

PD

[Spotted Horses]

Yes, his supposedly on-again-off-again girlfriend who was running Alameda.   And I suspect (highly) that she was in cahoots with her boyfriend.  She's testifying against him in exchange for leniency/shorter sentence from what I recall.

Are there many "brokerage firms" for cryptocurrencies?

According to the article that I had linked to, they believe that at least part of the *stolen monies out of the wallets is going to Russia...perhaps how they are managing to buy more weapons?  No idea.  I found it interesting to read that there are basically money laundering organization(s?) for crypto and it's hard to follow the electronic trail.

*20 million dollars worth being sold a day now apparently.

PD

The irony is that, as I understand it, there is a publicly available ledger of every bitcoin transaction ever made, so the ownership of every bitcoin ever minted is recorded, along with every transaction every made with every bitcoin. You just don't know who owns the accounts that bitcoin is assigned to, and perhaps those ledgers are so big that searching them is computationally expensive.

There are lots of exchanges, and FTX wasn't the biggest. But they were supposed to be one of the most trustworthy.

[Pohjolas Daughter]

The irony is that, as I understand it, there is a publicly available ledger of every bitcoin transaction ever made, so the ownership of every bitcoin ever minted is recorded, along with every transaction every made with every bitcoin. You just don't know who owns the accounts that bitcoin is assigned to, and perhaps those ledgers are so big that searching them is computationally expensive.

There are lots of exchanges, and FTX wasn't the biggest. But they were supposed to be one of the most trustworthy.  Was he ever given access to the dump?

Interesting thoughts and info.  So if you use bitcoin to buy something, there's an account of it?  As in like a credit card?

Some time ago, I remember reading an account of someone (a male in maybe his thirties...maybe American?) having lost the passcode to his wallet (think that it went into a landfill?)..ah, found it.  James Howells offering a reward to recover his hard drive.  From the UK.  https://www.businessinsider.com/james-howells-threw-away-bitcoin-dump-masterplan-get-back-2022-7?op=1

PD

[Spotted Horses]

Interesting thoughts and info.  So if you use bitcoin to buy something, there's an account of it?  As in like a credit card?

Some time ago, I remember reading an account of someone (a male in maybe his thirties...maybe American?) having lost the passcode to his wallet (think that it went into a landfill?)..ah, found it.  James Howells offering a reward to recover his hard drive.  From the UK.  https://www.businessinsider.com/james-howells-threw-away-bitcoin-dump-masterplan-get-back-2022-7?op=1

PD

In general terms it works like this. A bitcoin is an encrypted data packet that can only be accessed with a passcode. There is an open-source bitcoin server that anyone can run on a computer connected to the internet. If you want to make a bitcoin transaction you use some client software that sends a message, something like "user xxxx with password yyyy wants to transfer bitcoin zzzz with passcode aaaa to user bbbb. Then one of the bitcoin servers takes this message, validates the user and passcode, confirms that user xxxx owns bitcoin zzzz with valid passcode aaaa and that bbbb is a valid user. Then it enters the transaction in its ledger and the bitcoin has a new owner. It shares this with all of the other bitcoin servers, that maintain identical ledgers. When enough transactions have been accumulated they are packed into a "block" and added to the "blockchain," the exhaustive ledger. Each block contains the hashcode of the previous block. That way you can't alter a block to steal a bitcoin because the altered block's hashcode won't match subsequent blocks. You might legitimately want to run a bitcoin server because you get a little royalty for processing the transactions.

To make these transactions you need a "wallet," which is an application on your phone or computer that allows you to send to message to the blockchain servers. There are different wallet program available. You might want to use an exchange like FTX because it is more convenient and flexible than a wallet. That's the outline of it, to be taken with a grain of salt because I have never used a crypto currency.

So all transactions are there to see in the blockchain (which is enormous). But there is the possibility for someone to break into your account, or somehow hack the network to transfer someone else's bitcoin. The blockchain structure is supposed to make that impossible, but no one can protect you if you inadvertently publish or lose your bitcoin ID and password.

Of course, if there are people here who have a deeper understanding or experience with cryptocurrency, please correct any misconceptions here.

[Todd]

Straight from the EC: Carbon Border Adjustment Mechanism

When is a tariff not a tariff?  When Eurocrats say so, evidently. 

And some people still believe we do not live in a mercantilist world.

[T. D.]

Latest on the great Rudy:

https://www.yahoo.com/news/judge-punishes-rudy-giuliani-flagrant-043332820.html

It's a gas!

[Dry Brett Kavanaugh]

Taylor Swift boosts local business.


https://www.bbc.com/worklife/article/20231011-the-eras-tour-film-has-already-grossed-more-than-100m-the-taylor-swift-economy-is-unstoppable

[Pohjolas Daughter]

Taylor Swift boosts local business.


https://www.bbc.com/worklife/article/20231011-the-eras-tour-film-has-already-grossed-more-than-100m-the-taylor-swift-economy-is-unstoppable

She strikes me as an amazing young woman...talented, creative, smart, and caring.  And her fans are loyal.

PD

[Todd]

From NPR: Australia votes against creating an Indigenous panel to advise Parliament

[Pohjolas Daughter]

From NPR: Australia votes against creating an Indigenous panel to advise Parliament

I heard of read that the other day; quite surprising to me from what I understand of the situation.

Why not get the advice as it could help prevent yet even more blunders in the future and hopefully correct/try to rectify some of the past ones?

PD

[Dry Brett Kavanaugh]

Lina Khan, anti-trust warrior.


https://edition.cnn.com/2023/10/16/tech/lina-khan-risk-takers/index.html

[T. D.]

https://www.bbc.com/sport/66996021

Rudie van Vuuren: Meet the 'Doc' who played at World Cups in two sports
By Piers Edwards
BBC Sport Africa

[Todd]

From AP: Electrical grids aren't keeping up with the green energy push. That could risk climate goals

The IEA assessment of electricity grids around the globe found that achieving the climate goals set by the world's governments would require adding or refurbishing 80 million kilometers (50 million miles) of power lines by 2040 — an amount equal to the existing global grid in less than two decades.

Annual investment has been stagnant but needs to double to more than $600 billion a year by 2030, the agency said.

Expect missed targets every year, forever.  Sucks for countries like Tuvalu.  Or does it?

From The Economist: Tuvalu plans for its own disappearance

[Iota]

https://www.bbc.co.uk/news/av/uk-67180162

Not something you see every day! 

The sort of thing the witches might have warned Macbeth about, and leave him equally confident of his well-being as he was about Birnam Wood ...

[Dry Brett Kavanaugh]

The opposition is leading the poll in Venezuela.

https://www.theguardian.com/world/2023/oct/21/venezuela-oppostion-election-2024-nicolas-maduro-maria-corina-machado?CMP=Share_iOSApp_Other

[Pohjolas Daughter]

https://www.bbc.co.uk/news/av/uk-67180162

Not something you see every day! 

The sort of thing the witches might have warned Macbeth about, and leave him equally confident of his well-being as he was about Birnam Wood ...

Wow!   

PD

[T. D.]

https://www.cnbc.com/2023/10/24/trump-2020-lawyer-jenna-ellis-pleads-guilty-in-georgia-election-case-the-latest-to-flip.html

It was the result of chemical poisoning! CONSPIRACY!!!

[Todd]

Miniature 'Star Wars' X-wing gets over $3 million at auction of Hollywood model-maker's collection

[Todd]

An Oregon union wants to end self-serve fuel, months after it began

Local stupid.