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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

#101

Post by wanderingmind »

andrewstuart wrote: post #75

The real problem behind all these crypto companies is the people who make the money have no concept of what "integrity" is. They aren't coming from a baseline assumption that their job is to protect and interests and the money of their clients. Traditional banks, for the most part, have DNA built around protecting customer interests and customer money. Crypto companies have none of that attitude - behind every one of…

You mean like how Goldman sold junk bonds to customers while knowing it was junk?

Re: A software change allowed FTX to use client money

#102

Post by [deleted] »

wanderingmind wrote: post #101
andrewstuart wrote: post #75

The real problem behind all these crypto companies is the people who make the money have no concept of what "integrity" is. They aren't coming from a baseline assumption that their job is to protect and interests and the money of their clients. Traditional banks, for the most part, have DNA built around protecting customer interests and customer money. Crypto companies have none of that attitude - behind every one of…

You mean like how Goldman sold junk bonds to customers while knowing it was junk?

[deleted]

Re: A software change allowed FTX to use client money

#103

Post by andrewstuart »

jiggawatts wrote: post #98
andrewstuart wrote: post #75

The real problem behind all these crypto companies is the people who make the money have no concept of what "integrity" is. They aren't coming from a baseline assumption that their job is to protect and interests and the money of their clients. Traditional banks, for the most part, have DNA built around protecting customer interests and customer money. Crypto companies have none of that attitude - behind every one of…

> The real problem behind all these crypto companies is the people who make the money have no concept of what "integrity" is. You don't need integrity while "the line goes up". Integrity is only for when it goes down. Until recently, the line has been consistently going up. SBF was banking on it going up forever. If it had gone up forever, he would not have been caught! While the line goes up, integrity just eats int…

>> You don't need integrity while "the line goes up".

Integrity is how you behave when no-one is watching.

Re: A software change allowed FTX to use client money

#104

Post by strangeattractr »

wanderingmind wrote: post #101
andrewstuart wrote: post #75

The real problem behind all these crypto companies is the people who make the money have no concept of what "integrity" is. They aren't coming from a baseline assumption that their job is to protect and interests and the money of their clients. Traditional banks, for the most part, have DNA built around protecting customer interests and customer money. Crypto companies have none of that attitude - behind every one of…

You mean like how Goldman sold junk bonds to customers while knowing it was junk?

Junk bonds are bonds with high credit risk, what’s wrong with selling them to customers who are after high yields?

Re: A software change allowed FTX to use client money

#105

Post by stickfigure »

steveBK123 wrote: post #73
alar44 wrote: post #31

Earlier quoted context omitted.

Really? I feel like intent would be really hard to prove. "Hey, due to the way our accounting works I need you to subtract X from our dashboard." "Ok boss." Are programmers expected to know finance law? If I build a program for a dairy farmer am I supposed to know the laws of the interstate dairy trade? I can't believe that would be the case.

If Jamie Dimon asked a developer at the bank "hey can you have Chase ATMs allow these 10 accounts that are in my name to withdraw unlimited funds?" everyone involved would be in jail. This is not dissimilar.

"For testing purposes, these 10 account numbers should be allowed to remove cash from any of our ATMs. The testers will put the money back." It doesn't sound that nefarious. If you told me this is how ATMs are currently being tested in the industry, I wouldn't be able to contradict you.

Re: A software change allowed FTX to use client money

#106

Post by mianos »

parksoha wrote: post #67
arcbyte wrote: post #36

Earlier quoted context omitted.

Developers need to know the business better than the business people. Always. Otherwise you can't implement the software very well.

Isn't it completely unscalable? I work for a big automaker, there's literally people whose only job is to be compliant and inform the necessary leads about it. There's hundreds of countries, each with very specific things. If I study everything, I can't code. When knowledge arrives at my team, is already condensed to the point of: "in X country, you must tell the prices of a call if you show a phone number for assist…

Probably yes. What about the Volkswagen diesel emissions cheating that was approved and implemented by engineers?

It also might depend on seniority so you might not be on the hook.

Re: A software change allowed FTX to use client money

#107

Post by yarky »

strangeattractr wrote: post #104
wanderingmind wrote: post #101

Earlier quoted context omitted.

You mean like how Goldman sold junk bonds to customers while knowing it was junk?

Junk bonds are bonds with high credit risk, what’s wrong with selling them to customers who are after high yields?

It's not like junk was a part of the name right?

Re: A software change allowed FTX to use client money

#108

Post by species9606 »

wanderingmind wrote: post #101
andrewstuart wrote: post #75

The real problem behind all these crypto companies is the people who make the money have no concept of what "integrity" is. They aren't coming from a baseline assumption that their job is to protect and interests and the money of their clients. Traditional banks, for the most part, have DNA built around protecting customer interests and customer money. Crypto companies have none of that attitude - behind every one of…

You mean like how Goldman sold junk bonds to customers while knowing it was junk?

You have a point, but you may be thinking of the CDOs they and other sold, knowing that they were full of risky mortgages but laundering them through overly-chummy ratings firms.

Re: A software change allowed FTX to use client money

#109

Post by nradov »

arcbyte wrote: post #36
alar44 wrote: post #31

Earlier quoted context omitted.

Really? I feel like intent would be really hard to prove. "Hey, due to the way our accounting works I need you to subtract X from our dashboard." "Ok boss." Are programmers expected to know finance law? If I build a program for a dairy farmer am I supposed to know the laws of the interstate dairy trade? I can't believe that would be the case.

Developers need to know the business better than the business people. Always. Otherwise you can't implement the software very well.

That's a nice little fantasy. In the real world, competent developers with that level of domain knowledge mostly don't exist at any price. In the healthcare field where I work, not many developers have ever gone to medical school.
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