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Say I buy some Bitcoin or ETH and send it to FTX. Do we now know that: A) FTX were not segregating those client funds; B) They were speculating with them aft

Say I buy some Bitcoin or ETH and send it to FTX. Do we now know that: A) FTX were not segregating those client funds; B) They were speculating with them after SBF said “not even invested in treasuries”; C) Seperately, they were leveraging up FTT on their balance sheet. FTT price fall seems to be the catalyst, but this shouldn’t impact segregated client funds unless they are also being used in funky ways, right? Surely one of the above is bad enough, but all 3 is an astounding abuse of trust no? I have defended Crypto and even dabbled in the industry for a while, but this is shocking to find one of the blue chip names losing client funds.

NotYourLawyer 4y ago
>I have defended Crypto and even dabbled in the industry for a while, but this is shocking to find one of the blue chip names losing client funds. Entertaining? Absolutely. Shocking? Not to anyone who’s been paying attention.
Animats 4y ago
There's FTX.intl and FTX.us. They're supposed to be separate. The SEC and the CFTC just started investigating how separate. FTX.us is either OK or some people are going to jail. Too soon to tell which.
- darkteflon 4y ago
  There’s also an FTX Japan, although as far as I know it was wholly sold to a local buyer earlier this year. I had assumed they remained related only by brand. The FTX.intl insolvency makes me wonder whether they’ll be affected. Edit: FTX Japan has halted withdrawals too.
kikokikokiko 4y ago
Does anybody really find it surprising that a company that engaged in schemes that promised to "monetize" the deposits of clients, at rates 5 to 10 times larger than the current interest rates you can find in traditional vehicles, was a scam down to the core? The owner of said company was even boasting about how his products were PONZI SCHEMES. Anybody that "invested" in those stupid Defi magic beans deserve to lose it all, unfortunately.
sgt101 4y ago
>I have defended Crypto and even dabbled in the industry for a while, but this is shocking to find one of the blue chip names losing client funds. Steel yourself for future challenges.

NotYourLawyer 4y ago

>I have defended Crypto and even dabbled in the industry for a while, but this is shocking to find one of the blue chip names losing client funds. Entertaining? Absolutely. Shocking? Not to anyone who’s been paying attention.

Animats 4y ago

There's FTX.intl and FTX.us. They're supposed to be separate. The SEC and the CFTC just started investigating how separate. FTX.us is either OK or some people are going to jail. Too soon to tell which.

darkteflon 4y ago
There’s also an FTX Japan, although as far as I know it was wholly sold to a local buyer earlier this year. I had assumed they remained related only by brand. The FTX.intl insolvency makes me wonder whether they’ll be affected. Edit: FTX Japan has halted withdrawals too.

kikokikokiko 4y ago

Does anybody really find it surprising that a company that engaged in schemes that promised to "monetize" the deposits of clients, at rates 5 to 10 times larger than the current interest rates you can find in traditional vehicles, was a scam down to the core? The owner of said company was even boasting about how his products were PONZI SCHEMES. Anybody that "invested" in those stupid Defi magic beans deserve to lose it all, unfortunately.

sgt101 4y ago

>I have defended Crypto and even dabbled in the industry for a while, but this is shocking to find one of the blue chip names losing client funds. Steel yourself for future challenges.