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FTX execs blew through $8B — testimony reveals how (techcrunch.com)

submitted 1 year ago by L4s@lemmy.world to c/technology@lemmy.world

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FTX execs blew through $8B — testimony reveals how::Sam Bankman-Fried and other FTX executives spent $8 billion worth of customer funds on real estate, venture capital investments, campaign donations,

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[–] the_ocs@lemmy.world 17 points 1 year ago

how does an exchange determine how much money in usd and different cryptocurrencies to keep on hand to safely cover all depositors with them when there is such dramatic volatility in all the different cryptocurrency values?

If you move 1 BTC to an exchange, and you keep it in your account on the exchange, the exchange is meant to keep the 1 BTC on behalf of you.

They are not meant to do anything other than keep it.

An exchange is not a bank.

If the exchange takes your tokens (or fiat) and does anything other than what you ask them to do, they're not legit.