What this Guy did wasn’t just fraud, it was literal theft. Dig deeper, FTX didn’t fail because of crypto, FTX failed and was illegal because he advertised a service and didn’t actually do it.
So for example, one bought 20 bucks of Bitcoin thru FTX, thinking they owned the Bitcoin right? Wrong, FTX never actually purchased it, they just claimed too. They did turned around and leveraged that 20 dollars in various investments, reaping the profits and such from it. Then their investments went belly up.
What happened was, people started wanting their Bitcoin sold and their money in cashed out. FTX didn’t have it. FTX had leveraged it and lost it. So there was never any crypto actually bought. It was a total sham
