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> Have all of the people scammed been brought whole? I know zero details on where exactly the money ended up, but I have to imagine someone dumb enough to try
by evantbyrne 3y ago
> Have all of the people scammed been brought whole?
I know zero details on where exactly the money ended up, but I have to imagine someone dumb enough to try and pull this off would have also effectively shredded a huge chunk of the stolen funds.
- eru 3y agoLots of the money indirectly ended up with clients again. FTX was an exchange. It was an attractive exchange partially because many things traded there offered tight spreads, ie difference between prices quoted for buying and selling. The tight spreads came from Alameda. Alameda was another entity connected to SBF. The problem was that Alameda wasn't actually competent enough to quote tight spreads and make money off them. So they lost many to savvier customers. FTX lent money to Alameda to keep them afloat. But that money was never paid back. There's lots of other things that went wrong. But this is probably the most ironic part: a large part of FTX's clients' lost money went to FTX's clients. (But not the same clients who lost money. And lots of money was lost in other ways.)