Foreseeable future, I agree. What I was asking is whether customer deposits can be honoured, once everything that can be unwound. FTX+Alameda had a wider variety of assets than Mt gox had.
How long would it take to unwind, and then how much of deposits could be covered? 10%? 90%?
Also people will be interested to see outflows from FTX+Alameda once things went bad, and recently before.
I agree.
Their own terms were clear:
Let's see how well other exchanges put into action their︊ recent claims to be transparent about deposits.
Yes. There︌ are different types of liabilities. Investors in FTX and investors in Alameda invested in businesses︍ that failed and should expect to lose up to 100%. Then there are customer deposits.︎
Deposits should not have been used (see text above from FTX Website). Will bankruptcy and️ other proceedings prioritise customer deposits over other creditors?
There remains a serious legal problem, highlighted by Coinbase'
disclosure in May 2022.
There needs to be a better way to segregate user deposits.
If you put 1 ETH into an exchange and exchange it for 21 LTC, those 21 LTC should︀ already exist on blockchain, ready for you to withdraw. Someone else now gets to withdraw︁ your ETH that you sold them. No other creditor should have anything to do with︂ your deposits.
Perpetuals are different. Presumably that is where FTX and Alameda got it so︃ wrong. It looks like those who didn't agree with SBF's campaigning for CME style regulation︄ for exchanges have been vindicated.
