At least $1B of client funds missing at failed crypto firm FTX

reuters.com

42 points·VagueMag··10 comments

https://web.archive.org/web/20221112043232/https://www.reute...

> Spreadsheets indicated between $1 billion and $2 billion in client money is unaccounted for

> Executives set up book-keeping "back door" that thwarted red flags

> Whereabouts of missing funds is unknown

I know I shouldn’t be surprised, but the part of the book-keeping “back door” that executives set up is mind-blowing to me. If I worked at a company and it was clear that we were breaking the law, I’d resign and get out as fast as possible, not aid in the fraud and risk going to jail myself. Crazy.

Ongoing related thread:

FTX faces potential hack, sees mysterious outflows totaling more than $600M - https://news.ycombinator.com/item?id=33570274 - Nov 2022 (82 comments)

Yikes. The news seem to be that they’ve been hacked on all platforms, and all customer funds are gone.

On another hand, how convenient.

This seems like a big flaw of crypto. Banks don't have their customers actual money. Crypto does. All that money in one place, under the control of a few, so tempting.

Banks do have their customers money but are regulated and customers are protected.

I stand corrected.

you know, a billion here and a billion there, pretty soon you're talking about real money.

yikes

More like yawn.

All news I read about crypto are about: platforms going bust/making off with user funds, get-rich-quick scheme and gambling spam, shitcoins crashing (bankrupting irresponsible investors or scam victims in the process), environmental pollution.

This has been ever since bitcoin took off which started this collective madness.

Reply on news.ycombinator.com