So I’ve been watching the NYT dealbook interview and want to add some clarity that I think is missing here. Let me add a disclaimer that I don’t condone SBF at all. I just want to use his words to provide clarity. Everything below is paraphrasing.<p>Q: Did you co-mingle funds?<p>A: I did not mean to.<p>Q: It says in the TOS that you would not do that. How is it ok then?<p>A: It says elsewhere in the TOS that customers can take margin positions, so in some cases the co-mingling was to be expected.<p>Q: How did then such a large amount of money get co-mingled then, because it seems that a much larger amount of customer funds were affected than just the accounts trading on margin?<p>A: In the early days, we did not have a bank account, so when customers wanted to trade on our platform, they deposited money to alameda who then credited the money to us. I don’t know for sure, but it seems that the money that was credited wasn’t always put in the right account (ie safe money, per the TOS)<p>So as I’ve understood so far, it seems SBF is claiming there was just incompetence and mismanagement. A lot of regulation in finance is to prevent people from being able to do this. Anyways, to those who have said, “stealing money that I traded for magic beans is still stealing”, I think it’s a little more complicated than that.