As the world now knows, FTX was a corrupt mess. The misuse of customer funds by SBF and his cronies has been widely reported. What isn’t reported is the way that what are called customer “wallets” inside FTX and possibly other crypto exchanges typically work and how it facilitated the crime. Using the metaphor “wallet” to describe how customer funds are held gives a feeling of security that is completely unjustified by the technical implementation of customer accounts inside FTX. This technology practice enabled the mis-use of customer funds and made it effectively invisible to the outside world.
Was FTX an Exchange?
FTX described itself as an “Exchange,” specifically a “cryptocurrency exchange.” However, it was sadly lacking as an “exchange” as the term is used outside the world of cryptocurrency. Real exchanges like NYSE and NASDAQ
NDAQ
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