Is this right:
1. SBF created FTX
2. FTX created FTT
3. FTX lent FTT to Alameda.
4. Alameda pumped FTT and used it to borrow USD.
5. SBF spent USD.
1. SBF created FTX
2. FTX created FTT
3. FTX lent FTT to Alameda.
4. Alameda pumped FTT and used it to borrow USD.
5. SBF spent USD.
The bigger fraud was:
1. You put money into FTX and either kept it as USD/EUR/JPY etc or used it to buy Crypto
2. FTX told you they had that money/coins
3. FTX gave that to Alameda who gambled it away on a "if we make money we keep it, if we lose it, that's your problem" basis.
SBF, his parents and other senior people at both companies (plus other legal entities) were all helping themselves to peoples cash basically all the time as far as anyone can tell. Everything from fake expenses to "loans" they would never pay back to pump and dump BS. So it was BOTH a big fraud (using customer deposits to fund speculation) AND 1001 small frauds (taking funds meant to customers but used for speculation and actually using them to buy free houses for people or pay huge unearned bonuses etc).
FTX funds were used to buy them a beachfront property as a vacation home. Apparently they were aware before the bankruptcy that this was not SBFs personal gift. And in fairness they are now offering to return it.
https://finance.yahoo.com/news/sbf-parents-ftx-executives-bo...