[nullc]

> This may be the biggest embezzlement of customer funds held in custody in history.

I wouldn't be surprised to learn that the amount of actual customer funds that went in were much smaller than claimed.

Keep in mind FTX was mostly 'perpetuals' -- fake assets. It might be that a lot of the customer funds were just fictional gains, also may be that a lot of them were paper value owned by SBF entities.

I've been trying to find anyone I personally know that had FTX exposure and so far I'm coming up dry.

[coffeebeqn]

How about everyone with assets stuck in FTX that can’t withdraw them? When your accounting is fictional it might be hard to pinpoint who’s money went where but everyone got screwed in the end

[Animats]

There's someone on Reddit who says they had their entire net worth in USDC on FTX.[1]

At least they're at the head of the line in bankruptcy. Custodial funds come ahead of debts.

[1] https://www.reddit.com/r/wallstreetbets/comments/yq6y5d/all_...

[oldgradstudent]

> It might be that a lot of the customer funds were just fictional gains, also may be that a lot of them were paper value owned by SBF entities.

That's true for the numbers used when reporting on Bernie Madoff's Ponzi scheme. Much of the $50B was fictional gains.

There were even clawbacks on the gains of those who withdrew before the collapse.

[nullc]

Interestingly, many madoff victims had paid tons of federal gains taxes on the fictional gains and were unable to get the money back from the government.

Ultimately the US government is the party that gained the most financially from Madoff's scheme!