Thread by @SBF_FTX

1) Alright so here's what I gather happened with EMN:

@AndreCronjeTech was working on a new protocol. It was still in the testing phase, not ready to be released, in case e.g. it had bugs. He hadn't yet vetted it.

It did, in fact, have an exploit

https://twitter.com/SBF_Alameda/status/1310759557023502338

2) People were digging around Andre's code, found what he was working on, and started to talk about it.

To be clear Andre hadn't promoted it and wasn't intending it to be used yet--it (obviously) wasn't finished with testing!

But people found it anyway.

3) The people who found it started talking about it and spreading it (probably not maliciously -- probably just excited).

Everyone wants to get in on the next big Andre project, so people started FOMOing into it when they got wind of it.

So a bunch of people started buying.

4) But, remember, it wasn't tested, and had an exploit (involving flash loans).

So someone exploited it, taking all the funds ($16m I think?).

The hacker then sent half to Andre (as an "I'm sorry" note?) and kept half for themselves.

Andre wakes up and is like 'WTF happened'.

5) News spreads, people are confused and hurt and angry and impressed and lots of other things at once.

So, TL;DR:

a) Andre didn't intend any of this to happen
b) people dug around and found his incomplete projects
c) people bought his incomplete projects
d) flash loans

6) This could be wrong, I'm writing this on the fly, don't put 100% confidence in it.

also NOT INVESTMENT ADVICE

7) seems like they're going to try to pay back what they can, at least returning the $8mm that they were sent