But blockchain firm Ripple’s Chief Technology Officer, David Schwartz, weighed in on Sam Bankman-Fried’s sympathizers but also went on to detail what went wrong with the company.
Ripple CTO’s Take on FTX Collapse
The exec listed out three things that went “horribly wrong.”
FTX customer fiat assets were left in Alameda accounts and used by Alameda.
Customer deposits FTX was just supposed to hold were commingled with assets used in riskier ways.
Alameda was supposed to be executing risk-managed, nearly delta-neutral strategies. Somehow, positions weren’t tracked, risks weren’t managed at all, and strategies were not at all delta-neutral.
While the exec does not want to believe that corruption may have taken place in FTX, he added that even “willful blindness” on the leadership of the bankrupt firm’s part is equally appalling. Schwartz contemplated that “bad luck” during a long bear market may cause a lot of crypto companies to shut shop. But that is not the case w
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