FTX was just an exchange. If you invest money into Bitcoin, you will have to do it on some (centralized or decentralized) exchange. You'd expect that FTX would

FTX was just an exchange. If you invest money into Bitcoin, you will have to do it on some (centralized or decentralized) exchange. You'd expect that FTX would keep your Bitcoins safe in a digital vault somewhere, but SBF did not and instead used customer assets to gamble with Alameda Research. There are totally good reasons for a pension fund to invest minority assets into BTC, mostly diversification (check out Modern Portfolio Theory [1]). You may calculate the risk that BTC goes up or down, but most people probably didn't expect the exchange to lose the money. It's not the first time it happened (see Mt Gox), but FTX prided itself on being the most risk-averse. Yet it turned out all of that was based on fraud and fake numbers, fraudulent enough to even fool pension funds. [1] https://en.wikipedia.org/wiki/Modern_portfolio_theory https://en.wikipedia.org/wiki/Modern_portfolio_theory