Jesse Powell

Jesse Powell @jespow

@OurielOhayon You can't keep proving control if you have cold storage. Publishing all your wallets in realtime could be done at the expense of user privacy. Sum of the wallets could be provided in realtime through an auditor that conceals the addresses. Still need the auditor for liabilities. — PolitiTweet.org

Jesse Powell @jespow

Me like 100 times in the past week: 🔊 https://t.co/2nnEJytf0Y — PolitiTweet.org

Jesse Powell @jespow

@notsofast @Time_Factor_ Canadian government sent notices to several exchanges to freeze accounts they determined were connected to the trucker protests. They didn't have to be HQ'd in Canada. — PolitiTweet.org

Jesse Powell @jespow

@Time_Factor_ Already happened in Canada. — PolitiTweet.org

Jesse Powell @jespow

@TheMarginMan @krakenfx So far, it's not even proof of control of those whale wallets. It's just "here's a list of wallets". For all we know, the keys were lost or the wallets belong to someone else. — PolitiTweet.org

Jesse Powell @jespow

@TheMarginMan @krakenfx So far, it's not even proof of control of those whale wallets. It's just "here's a list of wallets". For all we know, they keys were lost or the wallets belong to someone else. — PolitiTweet.org

Jesse Powell @jespow

@CryptoCato3 You don't. The audit is not intended to prove more than the custodian has control of assets >= the sum of client balances. Exchanges simply producing a list of wallets don't tell us whether: 1. they actually control the wallets 2. the sum of the wallets >= client balances — PolitiTweet.org

Jesse Powell @jespow

2/2 #ProofOfReserves audit must have: 1. sum of client liabilities (auditor must exclude negative balances) 2. user-verifiable cryptographic proof that each account was included in the sum 3. signatures proving that the custodian has control of the wallets https://t.co/QEZo0DzJfw — PolitiTweet.org

Jesse Powell @jespow

1/ I said I was going to be more assertive with calling out problems. This is one of them. "Reserves" = assets minus liabilities "Reserves" != list of wallets The Proof of Reserves AUDIT requires cryptographic proof of client balances and wallet control. https://t.co/ALcfi7rLUV — PolitiTweet.org

Jesse Powell @jespow

@WatchCryptos @Galois_Capital It is comfy af. @CottonCitizen https://t.co/k5WD87vDDV — PolitiTweet.org

Jesse Powell @jespow

I don't usually re-watch podcasts but gigabrain Kevin Zhou @Galois_Capital (who called LUNA early) drops some amazing insights. He might be the only person to both work at 2 crypto exchanges and also operate a hedge fund that traded on FTX. Information:words ratio is unrivaled. — PolitiTweet.org

Jesse Powell @jespow

@nic__carter @Sparta4Leonidas @saylor @cz_binance https://t.co/hiWWrWQN7v — PolitiTweet.org

Jesse Powell @jespow

@nic__carter @Sparta4Leonidas @saylor @cz_binance Still CEO for now. — PolitiTweet.org

Jesse Powell @jespow

@CryptoTweetie @FTX_Official oof. some even went back for a second helping. 😬 — PolitiTweet.org

Jesse Powell @jespow

@angelus512 @FTX_Official Depends on the country. In the US, yes. In most other countries, when you stake ETH, you get an ETH2.S token which you can trade back for ETH to effectively sell your staked position to someone else. — PolitiTweet.org

Jesse Powell @jespow

I would love to hear from VCs that did look at @FTX_Official and passed. What did you see (or not see)? — PolitiTweet.org

Jesse Powell @jespow

@MrHodl https://t.co/wtANSrkluu — PolitiTweet.org

Jesse Powell @jespow

@JWVerret @krakenfx https://t.co/Bfky2H4aH2 — PolitiTweet.org

Jesse Powell @jespow

RT @TheAbridgedZach: Fantastic insights from @jespow about FTX, Sam Bankman-Fried's personal behavior & regulatory rent-seeking, implicatio… — PolitiTweet.org

Jesse Powell @jespow

@danny_mx Stepping up to Chairman. CEX CEO is an exhausting job and I've been at it for 11+ years. Still going to be super involved, just more time to focus on the areas I enjoy. — PolitiTweet.org

Jesse Powell @jespow

Getting off topic but this is Ethics 101. I debunked this prescriptive nihilism bullshit in college. Hard determinists still believe that punishment is rational and moral because it's a predictable and effective deterrent (consequence) to future crime. https://t.co/P0t9pcG8X9 — PolitiTweet.org

Jesse Powell @jespow

@markjeffrey If determinism is true, we have control and accountability. We're not helpless, random creatures. Yes, we are a product of our nature & nurture. We're also a product of ourselves, what we did in the last moment, last years. Was it all predetermined? Practically, doesn't matter. — PolitiTweet.org

Jesse Powell @jespow

Welp, this might explain some of it. True belief in half-baked philosophies is responsible for the worst atrocities. https://t.co/8YAiohFGXp — PolitiTweet.org

Jesse Powell @jespow

And how about taking some accountability. The whole scenario is presented as if it was an unavoidable natural disaster. Where is the apology and overwhelming remorse for vaporizing $10b of hard-earned life savings of your clients, employees and investors? Lives are ruined. — PolitiTweet.org

Jesse Powell @jespow

Here's what you can do: 1. immediately disclose all of the contagion risk. What other financial services had 7+ figs in your custody? 2. loudly shout to the world, over and over, in every interview, that this had nothing to do with crypto 3. cooperate 100% https://t.co/ePON3AjYmu — PolitiTweet.org

Jesse Powell @jespow

Bro) This is absolute delusion. $COIN is trading at $11b today. You think you're going to raise $8-10b just to plug a hole? The business is not fit to continue operating, even if you could. I pray to God you pull it off. You'll be king and I will bow down. Ain't gonna happen tho. https://t.co/O2gtBf8TJF — PolitiTweet.org

Jesse Powell @jespow

Read: "FTX couldn't legitimately obtain a bank account so we had Alameda launder money to circumvent the normal controls. 3 years after failing to do basic accounting and reconciliation, we found out we dun goofed to the tune of $8b of client funds. Oops! Common mistake." https://t.co/Vrrf9aEwzL — PolitiTweet.org

Jesse Powell @jespow

Read: "I thought other exchanges were misappropriating client funds so FTX misappropriated client funds too. It seemed ok because we thought we'd get away with it." https://t.co/oNXPGrnWD3 — PolitiTweet.org

Jesse Powell @jespow

The strategy was amazingly effective, and it's still being played effectively. He's not in handcuffs and the media continues to bury the lede. Maybe there's a lesson here for the industry? I have a question for the Defendant, Your Honor: were you lying then or are you lying now? — PolitiTweet.org

Jesse Powell @jespow

Crypto is a marathon. Extreme paranoia, conservatism and outlasting continues to be the winning strategy. #NYKNYC applies to businesses as much as individuals. Wish we had a better way for consumers to rate and price counterparty/solvency risk, calculate risk-adjusted fees/yield. — PolitiTweet.org