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I have not been following any crypto news POST mtgx and pulling all my crypto to local storage. What did this guy actually do? Did he mismanage funds or literally took money from poeple and stashed it away?

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He let his private equity / investment company (Alameda) borrow unlimited customer funds via a software backdoor for various investments.

(and lost most of it by "investing" in shitcoins, basically)

Don't forget the part where they based most of their valuation on a currency they printed.

https://youtu.be/KZYqL79GDXU

Magic black box yield farming at 21:29 timestamp.

Additionally, they outright lied about things like their reserves. The website had what claimed to be a real time ticker showing the reserve level that was actually a weighted random number. SBF claimed that he fell victim to poor risk management, but the more investigators dug in, the more evidence they found that there was organized corruption.

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