<story><title>FTX balance sheet, revealed</title><url>https://www.ft.com/content/0c2a55b6-d34c-4685-8a8d-3c9628f1f185</url></story><parent_chain><item><author>wumpus</author><text>Remember the Wirecard collapse, where there was a fake bank account in the Phillipines that allegedly had $2.1 billion USD in it?&lt;p&gt;This is the crypto equivalent.</text></item><item><author>Shank</author><text>The &amp;quot;before this week&amp;quot; column seems to be attempting to draw sympathy by saying &amp;quot;but everything was fine before, seriously!&amp;quot; when in reality it just proved that, even in the best of worlds, they had an extremely optimistic view of the entire crypto ecosystem, including its liquidity.&lt;p&gt;I can&amp;#x27;t believe they seriously held that much of their total value in their own issued token. That&amp;#x27;s just preposterous. Imagine if JP Morgan Chase&amp;#x27;s entire value was in JP Morgan Chase stock, and they just reported that as their value in cash. It&amp;#x27;s like recursive valuation.</text></item></parent_chain><comment><author>odiroot</author><text>I wonder if (some of) SEC will play the same role in this story as BaFin played in Wirecard&amp;#x27;s.</text></comment>
<story><title>FTX balance sheet, revealed</title><url>https://www.ft.com/content/0c2a55b6-d34c-4685-8a8d-3c9628f1f185</url></story><parent_chain><item><author>wumpus</author><text>Remember the Wirecard collapse, where there was a fake bank account in the Phillipines that allegedly had $2.1 billion USD in it?&lt;p&gt;This is the crypto equivalent.</text></item><item><author>Shank</author><text>The &amp;quot;before this week&amp;quot; column seems to be attempting to draw sympathy by saying &amp;quot;but everything was fine before, seriously!&amp;quot; when in reality it just proved that, even in the best of worlds, they had an extremely optimistic view of the entire crypto ecosystem, including its liquidity.&lt;p&gt;I can&amp;#x27;t believe they seriously held that much of their total value in their own issued token. That&amp;#x27;s just preposterous. Imagine if JP Morgan Chase&amp;#x27;s entire value was in JP Morgan Chase stock, and they just reported that as their value in cash. It&amp;#x27;s like recursive valuation.</text></item></parent_chain><comment><author>wyclif</author><text>Yes, it was actually two accounts: BDO Unibank and Bank of the Philippine Islands.</text></comment>