The issue isn't with crypto being a non backed asset.
The issue is that FTX stole customer deposits from their exchange and funneled them into their hedge funds (which then lost big time). Directly against their terms of service. And had zero collateral to back up these transfers.
SBF had a literal money making machine (fees from his exchange) and got greedy with it.
GDLSCanadaOfficial t1_j28t6ow wrote
Reply to comment by cloud_coder in FTX diverted $200 million of customer money for two venture deals that caught the SEC’s attention by cloud_coder
The issue isn't with crypto being a non backed asset.
The issue is that FTX stole customer deposits from their exchange and funneled them into their hedge funds (which then lost big time). Directly against their terms of service. And had zero collateral to back up these transfers.
SBF had a literal money making machine (fees from his exchange) and got greedy with it.