Trying to figure out the mechanics of the ‘con’ here. If a customer deposited $100K in FTX to purchase Bitcoin, did FTX actually purchase the Bitcoin and then that Bitcoin was siphoned off by SBF’s trading company Alameda Research? Or did the $100K just go in some kind of slush fund that SBF tapped into when Alameda went into its death spiral?
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if a customer deposits 100k and buys bitcoin. a couple of things could happen. the exchange could buy bitcoin on the customer’s behalf. or the exchange can “sell” the bitcoin to the customer. so likely in this case, no bitcoin was ever purchased by the exchange (using the customer’s money or not) to give to the customer. but banking statements showed that the custoemr had their money. so FTX was just leading on the customer, while sBF was transfering funds out.
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