Crypto exchange FTX lent billions of dollars worth of customer assets to fund risky bets by its affiliated trading firm, Alameda Research, setting the stage for the exchange’s implosion, a person familiar with the matter said.
FTX Chief Executive Sam Bankman-Fried told an investor this week that Alameda owes FTX about $10 billion, the person said. FTX extended loans to Alameda using money that customers had deposited on the exchange for trading purposes, a decision that Mr. Bankman-Fried described as a poor judgment call, according to the person.
You can call it a “loan” if you want, but raiding customer deposits to fund your hedge fund sounds like embezzlement to me… SBF_FTX
lookner No regulations with crypto is double edge sword. Sounds all great until things go wrong. At least with traditional bank 🏦 🏧 you have FDIC protections.
LokiJulianus You would never guess this could happen by looking at the guy...
🤦♂️
As crazy as all this sounds at one time there was over 200 paper currencies in the US before there was only 1. Similarly many people lost money until only a handful control it all.
Hes going to prison for a long time.
BaddCompani NO to CRYPTO!!! Just say NO!!! No to Bitcoin and whatever new devices they come up with. Until there is adequate protection just say NO!!!!😠
He’s not being a very good “Bankman” now is he?
Not sure why anyone would entrust their money with this guy… I mean, look at him…
Jail
Jail
BoSnerdley
Boom boom out go the lights
I swear in a decade we will look back and see 90% of crypto companies were bullshit from the start. Just like tech boom, a few will survive the vast majority will die.
Heads are gonna roll on this one
Pyramid scheme
Hundreds of fake profiles impersonating young ladies phishing around to offer you investing money in FTX
SBF was meant to be the next Soros
Is that right…