[nytesky]

Well, a LOT of crypto investor are limited means and the least likely to be able to afford to lose it. Sure they shouldn’t have risked their life savings, but they aren’t getting ahead in normal ways so they hooked onto this rocket, and FTX was considered safe and above board for a long time.

There are real mental and physical impact to loss of majority of your wealth, which can lead to homelessness, exhaustion from working more to cover shortfalls, marital strife, abuse, suicide.

Considering this wasn’t just insiders like high net worth investors angel investing, but everyday people, yeah it hurts a lot of people in real ways. Probably a lot more than the Madoff crowd for example.

[albntomat0]

My view is that folks lost their life savings on crypto on FTX is only a more extreme version of those who lost their live savings on crypto on some other exchange. The fraud is terrible, but only exasperates the problems of those gambling with limited resources to absorb loses.