A software change allowed FTX to use client money

> Bankman-Fried had directed subordinates to update the software in mid-2020 to enable Alameda to maintain a negative balance on its account, the SEC complaint said.

And thus do we have another piece of evidence for why morals and ethics matter, even for software developers. I doubt they'll end up with liability, but I do hope they at least recognize and think about how their actions enabled this whole mess.

Re: A software change allowed FTX to use client money

#5

Post by JumpCrisscross » Tue, Dec 13, 2022, 11:34 PM UTC

falcolas wrote: post #4

> Bankman-Fried had directed subordinates to update the software in mid-2020 to enable Alameda to maintain a negative balance on its account, the SEC complaint said. And thus do we have another piece of evidence for why morals and ethics matter, even for software developers. I doubt they'll end up with liability, but I do hope they at least recognize and think about how their actions enabled this whole mess.

> doubt they'll end up with liability

They're each going to run up five, maybe six, figure legal bills.

Re: A software change allowed FTX to use client money

#6

Post by andirk » Tue, Dec 13, 2022, 11:56 PM UTC

bitwise101 wrote: post #2

So the conclusive evidence was found with git blame?

The fact that the software was not audited speaks more about the big names who invested in this clown than the clown himself. So weird how he publicly touted the EXACT OPPOSITE of everything he did and stood for.

He may ask the judge for a rebase.

Re: A software change allowed FTX to use client money

#7

Post by drexlspivey » Wed, Dec 14, 2022, 12:04 AM UTC

bitwise101 wrote: post #2

So the conclusive evidence was found with git blame?

for dfb6f1f9 you are sentenced to 3 years in prison

Re: A software change allowed FTX to use client money

#8

Post by neilv » Wed, Dec 14, 2022, 12:05 AM UTC

falcolas wrote: post #4

> Bankman-Fried had directed subordinates to update the software in mid-2020 to enable Alameda to maintain a negative balance on its account, the SEC complaint said. And thus do we have another piece of evidence for why morals and ethics matter, even for software developers. I doubt they'll end up with liability, but I do hope they at least recognize and think about how their actions enabled this whole mess.

> I doubt they'll end up with liability,

When you should know it's criminal, "just following orders" isn't a great defense.

> but I do hope they at least recognize and think about how their actions enabled this whole mess.

They should get lawyers. And be prepared to sing like canaries.

Re: A software change allowed FTX to use client money

#9

Post by tiahura » Wed, Dec 14, 2022, 12:06 AM UTC

falcolas wrote: post #4

> Bankman-Fried had directed subordinates to update the software in mid-2020 to enable Alameda to maintain a negative balance on its account, the SEC complaint said. And thus do we have another piece of evidence for why morals and ethics matter, even for software developers. I doubt they'll end up with liability, but I do hope they at least recognize and think about how their actions enabled this whole mess.

I doubt they'll end up with liability

I doubt that. If they haven’t been sued already, they will tomorrow.

Re: A software change allowed FTX to use client money

#10

Post by thakoppno » Wed, Dec 14, 2022, 12:13 AM UTC

drexlspivey wrote: post #7

bitwise101 wrote: post #2

So the conclusive evidence was found with git blame?

for dfb6f1f9 you are sentenced to 3 years in prison

one time being a bit too careless with my command line friends of youtube-dl, mpd and git, I most certainly broke federal copyright laws with a single commit.