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A comment on Why wasn’t FTX’s fraud detectable on the blockchain?. Parent comment

Re:Why wasn’t FTX’s fraud detectable on the blockchain? by perryizgr8 on Thursday November 17, 2022 @12:57PM (#33642868)
> Current estimates are at about $10 billion they lost gambling on crypto with customer money.

I just don't understand the scale of it. Ten billion dollars is huge. It takes months if not years, even to lose that much in gambling. Did nobody notice anything off? Was the entire company in on it?

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Re:Why wasn’t FTX’s fraud detectable on the blockchain? by toomuchtodo on Thursday November 17, 2022 @01:48PM (#33643654)
Bernie Madoff ran his scheme for almost 20 years before being caught.

https://en.wikipedia.org/wiki/Madoff_investment_scandal

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Re:Why wasn’t FTX’s fraud detectable on the blockchain? by muddi900 on Friday November 18, 2022 @02:25AM (#33651447)
Madoff claims he was just a front-man for a conspiracy by large investors. Which is why he was supposedly not caught.

The theory makes sense, but he refused to name names. It might be that the benefactors are too powerful, but probably he's lying.

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Re:Why wasn’t FTX’s fraud detectable on the blockchain? by patrogizmo on Thursday November 17, 2022 @04:29PM (#33646013)
The new CEO of FTX just released a declaration: "Never in my career have I seen such a complete failure of corporate controls..."

"In the Bahamas, I understand that corporate funds of the FTX Group were used to purchase homes and other personal items for employees and advisors"

Sam Bankman-Fried's hedge fund lent billions to... Sam Bankman-Fried (Paper Bird is his entity), so that's at least part of the answer where the money went.

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