But by ToS FTX was not supposed to have any long term assets against the depositor liabilities. They first said they did (we're not insolvent, we're illiquid)

But by ToS FTX was not supposed to have any long term assets against the depositor liabilities. They first said they did (we're not insolvent, we're illiquid) but that's already fraud. Then turns out they were also insolvent, as suspected.