What Happened at Alameda Research

Re:What Happened at Alameda Research by gruez on Tuesday November 15, 2022 @09:11AM (#33609348)

>FTX took customer deposits (which were supposed to be held in custody and untouched, according to their TOS)

Can you provide the exact wording? At least when it comes traditional finance, if there's margin involved (FTX most definitely has margin), your deposits/holdings are fair game for your broker to use as they please.

https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_ma...

>Some margin accounts allow the brokerage firm to lend out securities in the account to a third-party, at any time without notice or compensation to the account holder, if the investor has any outstanding margin loan in the account

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Re:What Happened at Alameda Research by HideousKojima on Tuesday November 15, 2022 @09:16AM (#33609398)

"You control the Digital Assets held in your Account," says Section 8.2 of the terms. "Title to your Digital Assets shall at all times remain with you and shall not transfer to FTX Trading." The terms continue: "None of the Digital Assets in your Account are the property of, or shall or may be loaned to, FTX Trading; FTX Trading does not represent or treat Digital Assets in User’s Accounts as belonging to FTX Trading."

https://www.axios.com/2022/11/12/ftx-terms-service-trading-c...

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