Crypto prices in general also turned out in their favour, and without having looked into it closely I’d guess both of those bets paying off were necessary for people to get paid back,
If the bankruptcy hadn’t forced dollarization all of FTX’s customer deposits, I’m guessing they still wouldn’t be able to pay everyone back today,
Customer money wasn’t supposed to be going into bets with any variance. Having a diversified portfolio reduces variance but doesn’t eliminate it (and anyway I suspect FTX’s portfolio wasn’t in reality very diversified, given that tech stocks and crypto have historically been pretty correlated)
Crypto prices in general also turned out in their favour, and without having looked into it closely I’d guess both of those bets paying off were necessary for people to get paid back,
If the bankruptcy hadn’t forced dollarization all of FTX’s customer deposits, I’m guessing they still wouldn’t be able to pay everyone back today,
Customer money wasn’t supposed to be going into bets with any variance. Having a diversified portfolio reduces variance but doesn’t eliminate it (and anyway I suspect FTX’s portfolio wasn’t in reality very diversified, given that tech stocks and crypto have historically been pretty correlated)