user funds

Sun Yuchen: Both FDT and FTX are incidents of misappropriating user funds, but the FDT incident is more severe

ChainCatcher news, Sun Yuchen posted on platform X stating that the theft of user funds by First Digital Trust (FDT) and the misappropriation of user funds by FTX are both very serious and malicious incidents of misappropriation of user funds. However, if one must compare the severity, the severity of First Digital Trust (FDT) is even more serious, more than ten times worse than FTX. The reasons are as follows:FTX misappropriated user funds. Although users were unaware of the misappropriation, at least internally within FTX, SBF made it appear as if there was a pledge loan, representing Alameda Research, pledging a large amount of FTT/SRM/FTX shares/Maps tokens to lend user funds. At least on the surface, this looked like a loan, and a certain degree of collateral was provided based on a percentage. In contrast, FDT directly misappropriated and stole assets without user authorization and without users being aware, without even the internal collateral process.SBF misappropriated user funds from FTX without user authorization, but ultimately used them for investments, with at least the vast majority going into high-quality companies such as Robinhood and AI companies like Anthropic, without engaging in embezzlement or indulgence. In comparison, FDT currently appears to have diverted the vast majority into private companies, completely misappropriated and embezzled, without making any substantial investments.After the incident was exposed, SBF's attitude was at least proactive; he actively sought remedies, hiring law firms to find ways to recover user assets. In contrast, Vincent Chok Zhuo Junqiang, after the facts of misappropriation were exposed, still insisted on denying the truth, pretending that nothing had happened, showing great subjective malice.After the FTX incident, U.S. regulatory agencies and law enforcement quickly took action, actively intervening in the FTX bankruptcy proceedings and arresting those involved with FTX (including SBF), actively controlling the situation, helping users mitigate losses, and avoiding a significant impact on the reputation of the U.S. financial system.

BlockTower Capital founder: Zhao Changpeng's crimes are the same as SBF's, and the U.S. has given the former a lighter sentence for the sake of protecting user funds and other considerations

ChainCatcher news, BlockTower Capital founder and CIO Ari Paul opposes CryptoQuant CEO Ki Young Ju's positive view of Zhao Changpeng, stating, "The crimes committed by Zhao Changpeng are the same as those of SBF. If the federal government is willing, they could sentence Zhao Changpeng to life in prison. Zhao Changpeng stole customer deposits and gambled. He has dozens of charges against him, deceiving retail investors in numerous ways. He deliberately facilitated money laundering for criminal organizations and worse. Why is he only charged with a little? Because the federal government is concerned that he might bribe the Emirati sheik to obtain sovereign immunity and abscond with over $30 billion of retail funds, and because the federal government wants a large amount of evidence to prove the industry's guilt in Binance documents."It is noteworthy that the Reuters report cited by Ari Paul accuses Zhao Changpeng of obtaining approximately $11 billion in customer assets through trading firms. In response, CryptoQuant CEO Ki Young Ju referenced the U.S. Department of Justice's statement regarding the charges against Zhao Changpeng, stating that the Reuters report lacks conclusive evidence and only raises indirect suspicions without legal conviction. Furthermore, "the Department of Justice did not accuse Zhao Changpeng of misappropriating customer funds, but rather of conspiring to commit money laundering."Others have also expressed differing opinions on Ari Paul's viewpoint. They argue that it is illogical for someone who has already become a billionaire to choose to steal $30 billion to hold a small country hostage. Additionally, Binance also has clients from the UAE, and "theft" would also face legal repercussions in the UAE.
ChainCatcher Building the Web3 world with innovators