Monday, June 23, 2025
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

Wikipedia Editors List FTX’s Questionable Blunder as the Top Trading Loss of All-Time – Bitcoin News

by Jamie Redman
December 6, 2022
in Cryptocurrency
Reading Time: 6 mins read
A A
0
Home Cryptocurrency
Share on FacebookShare on Twitter


Following the collapse of FTX at the beginning of November, two top executives from FTX and Alameda Research — Sam Bankman-Fried and Caroline Ellison — have been listed among traders with the top trading losses worldwide on Wikipedia. According to the Wiki page, Bankman-Fried’s and Ellison’s so-called ‘trading loss’ of 51 billion nominal U.S. dollars is at the top of the list in terms of the highest nominal amount of funds lost by trading.

Wiki Article Prematurely Suggests FTX Fiasco Was a $51B ‘Trading Loss,’ Despite Ongoing Investigations

The FTX fiasco has been a big deal and according to data, it was one of the largest losses in the financial world in quite some time. In fact, according to Wikipedia’s page called the “List of Trading Losses,” FTX co-founder Sam Bankman-Fried (SBF) and Alameda Research CEO Caroline Ellison, have been added to the top of the list for purportedly losing $51 billion. The so-called trading loss tied to SBF and Ellison eclipsed the former largest trading loss, which took place in 2021. Prior to the FTX collapse, Archegos Capital Management reportedly lost $10 billion in total return swaps, and Archegos founder Bill Hwang reportedly lost it all in two days.

Below the FTX and Archegos trading losses was Morgan Stanley’s and bond trader Howie Hubler’s loss of $9 billion in 2008, as the company and trader lost the money from credit default swaps. Four years later, JPMorgan Chase and Bruno Iksil lost $9 billion as well from credit default swaps. This year, the Chinese firm Tsingshan Holding Group tried to short the commodity nickel and lost $8 billion from the bad bets. Below China’s Tsingshan, Société Générale and Jérôme Kerviel lost $6.12 billion in 2008. FTX’s losses, however, surpass the individually listed trading losses by a long shot, and Wikipedia editors explain that the list includes “both fraudulent and non-fraudulent losses.”

Wikipedia Editors List FTX's Questionable Blunder as the Top Trading Loss of All-Time

Interestingly, the Wikipedia editors detail that the funds associated with Bernie Madoff’s Ponzi scheme were not included. Madoff’s scheme reached around the $50 billion range, similar to FTX, but Wikipedia editors say “Madoff did not lose most of this money in trading.” In recent times, a few people have painted many similarities between Bernie Madoff and SBF. What’s interesting about Wikipedia’s article is that editors make the judgment call that Madoff’s tumble would not be included because it was a Ponzi scheme, but the FTX fiasco is included in the list. This is despite the fact that FTX investigations are still ongoing, and the case has not been settled in court.

Did FTX Really Lose $51 Billion in Bad Trades?

There’s a slew of information that claims FTX’s and Alameda’s executives were “inexperienced and unsophisticated individuals,” and another report that shows it was possible that Alameda Research CEO Caroline Ellison was allegedly a horrible margin trader. Further, there’s a lot of speculation that FTX’s and Alameda’s operations were Ponzi-like systems. Some have remarked that Alameda didn’t even really trade crypto, but rather “‘invested’ $8B across 448 venture-stage startups, most of which have ‘1-10’ employees and zero documentation.” Furthermore, according to nakedcapitalism.com’s Yves Smith, no one from the media has asked what happened to the $3.3 billion reportedly lent to SBF by Alameda. The alleged loans Alameda Research made totaled $4.1 billion, with most going to SBF, and the data was disclosed in a report published by the Financial Times (FT).

The FT report says SBF got a personal loan for $1 billion, and $2.3 billion was funneled to an SBF entity called Paper Bird. Former Mt Gox CEO Mark Karpelès created an FTX entity list, which shows Paper Bird is one of the top companies under SBF’s wing. So far, nakedcapitalism.com’s Smith says reporters interviewing SBF have not asked him where the $3.3 billion went. Furthermore, SBF never really explains in his interviews why top FTX and Alameda execs were given such “large personal lines of credit.” Instead, SBF has described a strange margin trading process, and reports claim top executives or “certain accounts” did not have to borrow or provide collateral to participate in FTX’s odd margin trading system.

With an ongoing investigation and the courts just getting involved in the FTX fiasco, it’s quite possible that Wikipedia’s judgment call to include FTX’s alleged ‘trading error’ in the top trading losses list may be wrong. There’s a possibility that Wikipedia editors may have to re-categorize the FTX case, in the same manner that was applied to Madoff’s $50 billion blunder. The point is, as of right now, there’s not enough evidence to say the FTX and Alameda fiasco was in fact a legitimate “trading loss,” or that most of the $51 billion cited in Wikipedia’s article was lost in trading mistakes.

Tags in this story
Alameda Research, alleged trading losses, Archegos Capital Management, Bernie Madoff, Bill Hwang, Bruno Iksil, Caroline Ellison, ftx, FTX case, FTX collapse, FTX entity list, Howie Hubler, JPMorgan Chase, Largest Trading Loss, Madoff Ponzi, Mark Karpeles, morgan stanley, nakedcapitalism.com, Paper Bird, Ponzi Scheme, Sam Bankman-Fried, sbf, Societe Generale, Top Trading Loss, Trading Loss, Trading Loss Worldwide, Tsingshan Holding Group, Wiki Article, Wikipedia, Wikipedia Editors, Yves Smith

What do you think about Wikipedia editors prematurely calling the FTX disaster a $51 billion trading loss? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More Popular News

In Case You Missed It





Source link

Tags: AlltimeBitcoinblunderEditorsFTXslistlossNewsQuestionableToptradingWikipedia
Previous Post

A look at Silvergate, one of the few US banks that let customers move dollars onto crypto exchanges, now drawing congressional scrutiny following FTX's collapse (Gretchen Morgenson/NBC News)

Next Post

The $60 price cap on Russian oil, explained

Related Posts

XRP, SOL, ETH, HYPE Oversold Bounce Possible If BTC Recovers

XRP, SOL, ETH, HYPE Oversold Bounce Possible If BTC Recovers

by Cointelegraph By Rakesh Upadhyay
June 22, 2025
0

Key factors:Bitcoin fell beneath the $100,000 help on Sunday, however a rebound may rely upon how US inventory futures open.Bitcoin’s...

Gracy Chen, the rare but glorious woman behind Bitget’s epic growth

Gracy Chen, the rare but glorious woman behind Bitget’s epic growth

by Christina Comben
June 23, 2025
0

Welcome to Slate Sundays, CryptoSlate’s weekly characteristic showcasing in-depth interviews, knowledgeable evaluation, and thought-provoking op-eds that transcend the headlines to discover...

Options Market Still Tilts Bullish Despite Bitcoin’s Dip Below 0K

Options Market Still Tilts Bullish Despite Bitcoin’s Dip Below $100K

by Jamie Redman
June 22, 2025
0

Bitcoin fell beneath $100,000 on Sunday following U.S. affirmation of involvement within the Israel-Iran battle, as derivatives information reveals merchants...

,000 Or 4,000? Bitcoin Mayer Multiple Chart Present Price Target Options

$96,000 Or $144,000? Bitcoin Mayer Multiple Chart Present Price Target Options

by Semilore Faleti
June 23, 2025
0

Semilore Faleti is a cryptocurrency author specialised within the discipline of journalism and content material creation. Whereas he began out...

Dogecoin Falls Below alt=

Dogecoin Falls Below $0.16: Here’s How Its Price Action Could Play Out

by Scott Matherson
June 22, 2025
0

Trusted Editorial content material, reviewed by main trade consultants and seasoned editors. Advert Disclosure Dogecoin’s current market efficiency has added...

Bitcoin crashes on Iranian Parliament approval of Hormuz Strait closure

Bitcoin crashes on Iranian Parliament approval of Hormuz Strait closure

by Vivian Nguyen
June 22, 2025
0

Key Takeaways Bitcoin worth dropped as Iran's Parliament accepted the closure of the Strait of Hormuz, heightening fears of oil...

Next Post
The  price cap on Russian oil, explained

The $60 price cap on Russian oil, explained

Waterdrop Inc. (WDH) Q3 2022 Earnings Call Transcript

Waterdrop Inc. (WDH) Q3 2022 Earnings Call Transcript

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Ares Alternative Credit To Buy 20% Stake In Eni Plenitude

Ares Alternative Credit To Buy 20% Stake In Eni Plenitude

June 23, 2025
First Trade: Nifty slips 150 points to trade at 24,961; IT gauge top loser

First Trade: Nifty slips 150 points to trade at 24,961; IT gauge top loser

June 23, 2025
The Best Space Stock Out There Is…

The Best Space Stock Out There Is…

June 23, 2025
Air India crash risks fueling up to 30% jump in insurance premiums

Air India crash risks fueling up to 30% jump in insurance premiums

June 23, 2025
One in seven people ‘have lost money to fraud in past year’

One in seven people ‘have lost money to fraud in past year’

June 23, 2025
Legacy News Omits Mahmoud Khalil’s Return Protest

Legacy News Omits Mahmoud Khalil’s Return Protest

June 23, 2025
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

Ares Alternative Credit To Buy 20% Stake In Eni Plenitude

First Trade: Nifty slips 150 points to trade at 24,961; IT gauge top loser

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In