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Note that FTX told their customers that they would not invest their deposits. Customers who opted in to margin lending could lend money to other customers but e
by wmf 3y ago
Note that FTX told their customers that they would not invest their deposits. Customers who opted in to margin lending could lend money to other customers but even in that case FTX went far beyond what they promised to their customers. It would be more accurate IMO to say that FTX embezzled (or just plain stole) customer deposits.
- matheusmoreira 3y agoHuh. That makes it even worse. Every cryptocurrency exchange I've ever seen offers literal savings accounts, it's obvious to anyone who knows how banks work they're loaning out customer funds. You're saying FTX didn't do that? That's even worse...
- wmf 3y agoYeah. Celsius, BlockFi, Voyager, Gemini Earn, etc. were structured like savings accounts but FTX was not. FTX was supposed to be "your money is your money". What happened wasn't a mistake; it was theft.
- matheusmoreira 3y agoJesus. You're right then. It's even worse than I thought.