Levine responded, "I think of myself as like a fairly cynical person. And that was so much more cynical than how I would've described farming. You're just like, well, I'm in the Ponzi business and it's pretty good."
FTX founder Sam Bankman-Fried tries to explain yield farming and it's just a ponzi
- "FTX/ Defi: If it looks like a duck and quacks like a duck . . . ", Financial Times
Liquid Global cryptocurrency exchange hacked for $90 million
A week after the hack, FTX extended a $120 million loan to the platform. In April 2022, FTX formally acquired Liquid for an undisclosed amount.
FTX loses $800 million to MobileCoin market manipulation
During the October 2023 criminal trial of FTX founder and CEO Sam Bankman-Fried, he gave more detail on how the exploit took place, and admitted that he personally had disabled FTX's automatic liquidation systems for this account. Though he intended to closely monitor the account to prevent any losses to FTX, he said that it was actually his actions that allowed the trader to drain such a massive quantity of assets from the exchange.
Prosecutors alleged that Bankman-Fried later had his cryptocurrency trading firm, Alameda Research, shoulder the loss, saying that he'd hoped it would be less visible on Alameda's balance sheets than on FTX's.
- "The FTX trial, day fourteen: Same events, new stories", Newsletter by Molly White