Based on reports, no less than $ 1 billion in customer funds – and possibly as much as $ 2 billion – were lost within the FTX cryptocurrency implosion.
Flamboyant FTX founder Sam Bankman-Fried, known within the industry as “SBF”, has secretly transferred $ 10 billion in customer funds to his trading firm, Alameda Research, sources told two media outlets.
Alameda Research it run by Bankman-Fried girlfriend Caroline Ellison.
Two senior FTX officials said they saw evidence of an absence of cash in copies of monetary records Bankman-Fried shared with company management last week. in keeping with Reuters.
Bankman-Fried resigned as CEO on Friday when the Bahamas-based FTX filed for Chapter 11 bankruptcy after attempting to support the $ 8 billion liquidity crisis that prevented investors from applying for his or her funds.
An attempt to avoid wasting FTX through a bailout cope with the rival Binance exchange failed, resulting in the most important cryptocurrency collapse in recent times.
In a text message to Reuters Bankman-Fried, certainly one of the Democratic Party’s biggest donors, said he “didn’t agree with the characteristics” of the $ 10 billion transfer.
“We didn’t move secretly,” he said. “We had misleading internal labels and we misread them,” he added without explaining.
“???” was Bankman-Fried’s answer to the missing money query.
With post wires
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