Did Bankman-fried really know what Alameda was up to?

Bankman-Fried, in a series of high-profile media appearances this week, has begun offering his own working theory: Alameda took on far too much leverage to make risky investments on the FTX platform, and FTX failed to recognize and prevent it. A key claim: that Bankman-Fried himself didn’t really know what Alameda was up to.

Does Sam Bankman-fried owe FTX $10 billion?

Sam Bankman-Fried’s trading firm Alameda Research reportedly owes his crypto exchange FTX $10 billion after taking loans funded by deposits from FTX customers, according to The Wall Street Journal. As economist Frances Coppola pointed out to the Journal, exchanges like FTX shouldn’t be investing customers’ money.

Does Alameda research owe FTX $10 billion?

Basically rule number one of what not to do with your customers’ money. Sam Bankman-Fried’s trading firm Alameda Research reportedly owes his crypto exchange FTX $10 billion after taking loans funded by deposits from FTX customers, according to The Wall Street Journal.

Who is Sam Bankman-fried?

The trading company's owner tweeted the news on Thursday morning. FTX CEO Sam Bankman-Fried promised to use “every penny” his crypto exchange has to repay users ahead of investors, apologizing for his “f**k up” in a tweet thread Thursday.