> Bankman-Fried has maintained that FTX has never invested the deposits of crypto account holders on the exchange. I pressed him on that point via Twitter, and

> Bankman-Fried has maintained that FTX has never invested the deposits of crypto account holders on the exchange. I pressed him on that point via Twitter, and while he continued to insist that FTX did not directly use account money in this way, he said that Alameda — which he also owns — had borrowed far more money from FTX’s balance sheet for investments than he had realized, which ultimately left FTX vulnerable to the crypto equivalent of a bank run. > Why didn’t Bankman-Fried realize what was happening until it was too late? “Sometimes life creeps up on you,” he said. This is the central issue of the case. There aren't many paths for an exchange to experience a run unless it's acting like a fractional reserve bank. So here's an admission that Alameda borrowed from the FTX balance sheet. There's also a denial that FTX invested deposits. There's no way for both statements to be true.