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slackboulder t1_ivyafag wrote

Reply to comment by JPAnalyst in [OC] Binance - FTX saga in 4 mini charts by giteam

FTX was not holding customer money/crypto. They were borrowing it without customer knowledge to make other trades. So when a bank run happened which is when customers run to the bank to take out their money/crypto due to panic from falling prices. FTX was unable to give customers their money/crypto, and led to customers being locked out of their accounts. So now FTX is worth nothing, and there is a lot of people who trusted them who are going to lose everything.

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JPAnalyst t1_ivyb8a6 wrote

Oh my. This is a s a big deal. It’s like what happened to George Baileys bank in It’s a Wonderful Life, but worse because FTX was cheating/lying. Horrible.

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slackboulder t1_ivyc4pp wrote

Same thing happened with Voyager and Celsius exchanges. There was a lot of people scamming.

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[deleted] t1_ivydvvh wrote

[deleted]

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slackboulder t1_ivye2p5 wrote

It's an exchange, not a bank. They were supposed to be a place to hold/exchange your crypto.

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[deleted] t1_iw0ec33 wrote

Hopefully people go to jail, but realistically they're probably going to all skate and still be wealthy.

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