[jasmer]

The part where he was lending out deposits to make big bets looks very problematic, and hopefully illegal.

The CEO described how a feasible 'pyramid' could work with Levine on Bloomberg and it looks like he was doing just that.

This is basically a smart kid breaking all the rules, doing mostly what he was allowed to do legally with all of the misrepresentation and hyper - plus a little bit of illegal stuff which is all you need along with the massive leverage that comes along with it.

But I would say aside from his shenanigans - this is a crypto problem. At the base of the pyramid was an 'asset worth nothing' well ... of of crypto is essentially that.