I think it’s pretty straightforward. I think some of the other announcements got this right. An alternative would be:
As far as I can tell a substantial fraction of the behavior that was going on at FTX was highly unethical and I condemn it in some of the strongest terms that I can think of. It currently looks like billions of dollars of customer deposits were misappropriated, in direct violation of FTX’s terms of service and public statements by FTX and Sam Bankman Fried. This was a gross violation of trust and looks likely to be a straightforward example of extremely large-scale financial fraud, possibly the biggest case of financial fraud since Enron.
This is a tragedy, and I think FTX has caused great harm for the world. I am saddened to hear about the harm to many of FTX’s depositors, investors and grant-recipients and am worried that I myself have contributed some to this harm by lending FTX indirectly some of my reputation, and I am reflecting deeply on how I should learn from this situation.
Or alternatively just a minimally edited version of the OP’s sentence:
We strongly condemn the misuse of customer funds and trust that occurred at FTX.
I think it’s pretty straightforward. I think some of the other announcements got this right. An alternative would be:
Or alternatively just a minimally edited version of the OP’s sentence: