vasya349 t1_j3l79vx wrote on January 9, 2023 at 9:14 AM

Reply to comment by mjtwelve in FTX attempting to recover millions donated to charities. by imhergod

I don’t think anybody is alleging customer funds were used for donations?

S3IqOOq-N-S37IWS-Wd t1_j3l9krh wrote on January 9, 2023 at 9:47 AM

Isn't the whole thing that ftx accounting was all mangled and didn't separate customer funds from others?

vasya349 t1_j3la7w0 wrote on January 9, 2023 at 9:56 AM

The big thing was Alameda made money from investing with FTX customer funds, meaning they could lose them if their investments went bust (and they did). But I don’t believe FTX revenues themselves (the source of the donations) were ever the property of others.

S3IqOOq-N-S37IWS-Wd t1_j3lb7r5 wrote on January 9, 2023 at 10:10 AM

Technically yes the revenues would be FTX's but things were commingled. That FTX dipped into customer funds when lending to Alameda means they didn't distinguish between their funds and customer funds. The new manager has made very clear that their accounting was a shitshow so I'm not sure you can clearly say what money was donated.

Even if they were in separate accounts, I'm sure other arguments can be made based on the liabilities created when lending out customer funds.

> Federal prosecutors and regulators allege that SBF, FTX, and its affiliates, which include defunct hedge fund Alameda Research, stole user funds and poured billions of dollars into risky bets that did not pan out.

Shadefeaster t1_j3la2nw wrote on January 9, 2023 at 9:54 AM

That's exactly what he did and it is the whole reason he's being tried for fraud as we speak. Dudes going to jail for a long time.

vasya349 t1_j3lai3i wrote on January 9, 2023 at 10:00 AM

He is not in jail for using customer funds for political donations. He’s in jail for loaning customer funds to his investment group. That’s why he’s being charged with securities fraud rather than theft. It also completely changes the legal dynamic on whose property the donations were.

Shadefeaster t1_j3ldkxb wrote on January 9, 2023 at 10:44 AM

Among many other things. The SEC accused SBF of personally borrowing more than $1.338 billion from Alameda, using customers’ money for investments, real estate, and political donations before they froze his assets. Many others did the same for multiple billions of customers assets.