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A software change allowed FTX to use client money

reuters.com

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Re: A software change allowed FTX to use client money

#11

Post by SanjayMehta »

andirk wrote: post #6
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.

The best liars believe their own lies. Having said that, it's evident that SBF was very well connected and the "old boys club" doesn't ask each other questions; "that would be rude, you know." That's probably how he raised so much money in the first place.

Re: A software change allowed FTX to use client money

#13

Post by notch656a »

roland35 wrote: post #12

And this is what really ruins crypto to me. With no actual legal protection, no trust, "code is law", am I expected to keep up with every pull request? And of course these exchanges are completely opaque on top of that.

Both criminal law and code are vast enough that the fraction I understand of either is closer to zero than the entirety.

Re: A software change allowed FTX to use client money

#14

Post by urthor »

andirk wrote: post #6
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.

Says a lot about the software industry as a whole.

Re: A software change allowed FTX to use client money

#15

Post by akavi »

andirk wrote: post #6
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.

I've been at many startups during a fundraising round, and I don't think I've ever seen or heard of an investor auditing the codebase.

Re: A software change allowed FTX to use client money

#18

Post by rafale »

roland35 wrote: post #12

And this is what really ruins crypto to me. With no actual legal protection, no trust, "code is law", am I expected to keep up with every pull request? And of course these exchanges are completely opaque on top of that.

This is not crypto, this is Enron, Theranos and Madoff. In DeFi, you check the code once, and that's what gonna run (exception being proxy contracts, but those are a red flag in itself).

Re: A software change allowed FTX to use client money

#20

Post by polygamous_bat »

swiper_lux wrote: post #17

Brings up a question: what is the chance of blaming some of this on an "innocent" coding error? Can you get jail for not writing unit tests, swallowing an exception, a type conversion you did not expect?

I believe that really depends on (a) how much harm it caused downstream, (b) how much of it is caused by your actions. Per Matt Levine's column today, it's not the whole problem that FTX had sloppy accounting – rather that SBF went around advertising the "sophisticated risk engine" which in reality was crap. This action accounts for fraud.

I don't see you being jailed for your random GitHub project being sloppy. However, if your closed source software that you advertise as 100% safe and secure gets used by a chemotherapy clinic, and then it comes out to be downright sloppy after killing 20 patients you may be accused of fraud. Anyway, not a lawyer so take it with a grain of salt.

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