manfromfuture t1_j1i8vjs wrote on December 24, 2022 at 4:02 PM

Reply to comment by rayinreverse in Judge kept cooperation of Alameda CEO, FTX co-founder a secret so Sam Bankman-Fried wouldn’t get spooked and fight extradition by ihavestrings

Madoff's fraud was pretty straightforward. He sent shareholders forms saying "this is how much money we are holding for you" and really there was no money. I don't know what FTX did but it sounds more complicated. Was FTX even the same kind of financial entity?

mingy t1_j1kiofp wrote on December 25, 2022 at 2:37 AM

Are you kidding? The FTX fraud was a fucking joke: basically he said "hey, I'm unregulated - give me your money" and cryptobros are so fucking stupid they did. It took Madoff decades to get to the position of confidence were he was able to convince relatively sophisticated people to invest in his (allegedly) regulated business. When regulator started sniffing around, Madoff had to charm them.

FTX was the equivalent of a cardboard box wrapped in tinfoil with BANK written on with crayon.