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https://twitter.com/Brett_FTX/status/1560701320717369349 https://twitter.com/Brett_FTX/status/1560701320717369349 Brett's response

NotYourLawyer 4y ago
That… does not make me think he was telling the truth.
- duxup 4y ago
  May have been better to delete tweet and not say anything.
  - dylan604 4y ago
    But that's not how you play the social media game.
    - duxup 4y ago
      True. Volume of communication seems to be the playbook.
- okwubodu 4y ago
  Given that this tweet (https://twitter.com/Brett_FTX/status/1552339740397109248 https://twitter.com/Brett_FTX/status/1552339740397109248) > brokerage accounts are SIPC-insured, cash associated with brokerage accounts is managed into FDIC-insured accounts at our partner bank is still up, I imagine the imprecision of the statement is what the FDIC took issue with.
  - adrr 4y ago
    Because it's probably setup similarly to Voyager which is a single omnibus account and offers no protection of if the brokerage goes bankrupt.
    - AlexandrB 4y ago
      Does it even offer any realistic protection if the "partner bank" goes under? AFAIK the limit on FDIC insurance is $200k / account. Is FTX managing hundreds/thousands of account to get around this or is only $200k of their money FDIC insured?
      - colechristensen 4y ago
        To get FDIC insurance in a meaningful way it would have to be per-customer accounts created in specific ways. If they're not created in particular ways the funds in the third party bank accounts can be taken in bankruptcy actions by creditors and aren't actually protected customer funds and aren't insured at all accept with whatever level of insurance they have for the partner bank going under, but that is not the risk anybody is worried about.
        dpifke 4y ago
        They are per-customer accounts. This is how they explain it when you enable the feature: https://pifke.org/ftxdd.png https://pifke.org/ftxdd.png
- fortran77 4y ago
  He seems very slimy here. Why would he mention the words "FDIC Insured" if he didn't want people to think their deposits were insured?
  - aaaaaaaaata 4y ago
    Many investors hold cash for long periods. Knowing that it's safe before an investment is triggered is a big checkbox.
    - fortran77 4y ago
      Right. But it wasn't safe because it wasn't really FDIC insured.

NotYourLawyer 4y ago

That… does not make me think he was telling the truth.

duxup 4y ago
May have been better to delete tweet and not say anything.
- dylan604 4y ago
  But that's not how you play the social media game.
  - duxup 4y ago
    True. Volume of communication seems to be the playbook.
okwubodu 4y ago
Given that this tweet (https://twitter.com/Brett_FTX/status/1552339740397109248 https://twitter.com/Brett_FTX/status/1552339740397109248) > brokerage accounts are SIPC-insured, cash associated with brokerage accounts is managed into FDIC-insured accounts at our partner bank is still up, I imagine the imprecision of the statement is what the FDIC took issue with.
- adrr 4y ago
  Because it's probably setup similarly to Voyager which is a single omnibus account and offers no protection of if the brokerage goes bankrupt.
  - AlexandrB 4y ago
    Does it even offer any realistic protection if the "partner bank" goes under? AFAIK the limit on FDIC insurance is $200k / account. Is FTX managing hundreds/thousands of account to get around this or is only $200k of their money FDIC insured?
    - colechristensen 4y ago
      To get FDIC insurance in a meaningful way it would have to be per-customer accounts created in specific ways. If they're not created in particular ways the funds in the third party bank accounts can be taken in bankruptcy actions by creditors and aren't actually protected customer funds and aren't insured at all accept with whatever level of insurance they have for the partner bank going under, but that is not the risk anybody is worried about.
      - dpifke 4y ago
        They are per-customer accounts. This is how they explain it when you enable the feature: https://pifke.org/ftxdd.png https://pifke.org/ftxdd.png
fortran77 4y ago
He seems very slimy here. Why would he mention the words "FDIC Insured" if he didn't want people to think their deposits were insured?
- aaaaaaaaata 4y ago
  Many investors hold cash for long periods. Knowing that it's safe before an investment is triggered is a big checkbox.
  - fortran77 4y ago
    Right. But it wasn't safe because it wasn't really FDIC insured.