The phrase “Not your keys, not your coins” has never felt more natural in the crypto-verse. Amidst the jaw-dropping developments in the ongoing fraud trial of FTX founder Sam Bankman-Fried, also known as SBF, the FTX 2.0 Coalition is stepping into the spotlight to serve as a conscience for the crypto community. 

“If you are an FTX creditor-customer in the US, you can file a police report,” warns the coalition

FTX ToS: The Trap Card No One Saw Coming

As SBF’s legal wrangle unfolds, the FTX 2.0 Coalition has highlighted a critical angle—FTX’s Terms of Service (ToS), which explicitly states that customers retain the title of their assets. This could land not just FTX but several other giants like Binance, Genesis, Celsius, BlockFi, Voyager, GDA, and Skybridge into hot water. According to recent expert testimony, many entities could hold “stolen FTX customer property,” making them criminally liable under US law.

Peter Easton, an accounting professor hired by the U.S. Department of Justice, dropped the bombshell revelation that over $1 billion from FTX customer funds were channeled to buy back Binance’s stake in FTX. This episode becomes more troubling when considered alongside other allocations—investments in businesses, real estate, and even political contributions—all made from customer deposits.

As SBF faces scrutiny for his Capitol Hill testimony and alleged lobbying efforts, one can’t help but ponder the irony in his previously declared exhaustion with “unethical shit” and explicit disdain for regulators

FTX 2.0 Coalition: The Robin Hoods of Crypto?

So, where does this leave the FTX 2.0 Coalition, a group tirelessly advocating for transparency and security in the crypto exchange landscape? Their focus on the FTX ToS and the subsequent implications for other exchanges underscores a pressing need for industry self-correction. As they work to “build a better, safer exchange for all,” it’s becoming clear that their initiative may be one of the last guard against an industry swinging on ethical collapse.

As SBF’s trial for seven criminal charges, including fraud and money laundering, continues to send ripples through the crypto community, the FTX 2.0 Coalition’s warnings feel less like cautionary tales and more like real-time reports from the future—one where either course correction or calamity awaits.

In the end, this is not just about one man or one exchange; it’s about an entire ecosystem that radically needs to rethink its ethics and governance.

Leave a Reply

Your email address will not be published. Required fields are marked *