[NovemberWhiskey]

From my perspective, the problem here is no-one (including SBF) appears to know what kind of an enterprise FTX was supposed to be.

Everyone seems to agree that Alameda is a hedge fund, but looking at the facts, FTX also appears to have been operated as one as well; but without the qualification of investors or others kinds of things. There's no just a really good correlate in traditional finance for "I'm going to act as a broker-dealer but actually I'm allowed to just invest your funds however the hell I like". Which is probably a good thing.

I'm not necessarily saying that everything in defi has to be regulated exactly like something in traditional finance, but there are some pretty deep unanswered questions on basic stuff like "did your customers know they were actually your investors?" and "what exactly was your business model?" and "what was your risk management approach?"

[SilverBirch]

Woah woah woah. Don't buy into the bullshit. We know exactly what FTX was meant to be. FTX US was meant to be a US based crypto exchange regulated in the US, FTX International was meant to be a Bahamas based crypto exchange with less regulation. Alameda was meant to be a hedge fund.

FTX made very clear promises about what it was - and that all customer deposits were safe, which we know is a lie because at the point SBF said that we knew the liabilities of Alameda and FTX was denominated in an imaginary currency.