RUMOR: Alameda Research “Loses” Hundreds Of Millions Dollars To FTX Client
According to the Financial Times, a transaction buy cost Alameda Research hundreds of thousands of dollars in losses on behalf of its sister company, the bitcoin exchange FTX.
As a result, an FTX user opened a leveraged purchase on MobileCoin (MOB) in early 2021, which caused the currency value to soar from USD 6 to USD 70. To borrow the margin from FTX, this consumer used MOB as collateral.
Source Financial Times verified that investment fund Alameda Research was had to step in and take precedence over the trading place of the stated customer since the harm for the swap was so great, ranging from hundreds of thousands of dollars to $1 billion.
This information once more shows the close relationship between FTX and Alameda Research, two companies established by Sam Bankman-Fried but deemed independent of one another. Alameda Research lost a sizable amount of its 2021 earnings as a result of this action.
According to a number of sources, one of the reasons why FTX – Alameda failed recently was that FTX had taken money from customers to lend to Alameda. As a result, Alameda made investments at a loss right when the cryptocurrency market had a crisis in 2022 and had to borrow money from FTX to meet its payback obligations. In exchange, the fund will use illiquid tokens like FTT to secure the loans.
Early in November, after a string of unfavorable reports about the exchange surfaced, the value of the collateral fell and FTX end customers withdrew their money, which caused the “sand castle” of FTX, Alameda, to completely collapse.
The FTX exchange still has up to $9 billion in assets and $9 billion in liabilities, according to later-released information from Sam Bankman-Fried, but 90% of them are extremely illiquid and nearly worthless cryptocurrencies.
According to court documents, FTX and Alameda Research had accrued losses of $3.7 billion in the years leading up to 2022. Additionally, the exchange owes just the 50 largest creditors a total of $3.1 billion.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
Author
News
RUMOR: Alameda Research “Loses” Hundreds Of Millions Dollars To FTX Client
According to the Financial Times, a transaction buy cost Alameda Research hundreds of thousands of dollars in losses on behalf of its sister company, the bitcoin exchange FTX.
As a result, an FTX user opened a leveraged purchase on MobileCoin (MOB) in early 2021, which caused the currency value to soar from USD 6 to USD 70. To borrow the margin from FTX, this consumer used MOB as collateral.
Source Financial Times verified that investment fund Alameda Research was had to step in and take precedence over the trading place of the stated customer since the harm for the swap was so great, ranging from hundreds of thousands of dollars to $1 billion.
This information once more shows the close relationship between FTX and Alameda Research, two companies established by Sam Bankman-Fried but deemed independent of one another. Alameda Research lost a sizable amount of its 2021 earnings as a result of this action.
According to a number of sources, one of the reasons why FTX – Alameda failed recently was that FTX had taken money from customers to lend to Alameda. As a result, Alameda made investments at a loss right when the cryptocurrency market had a crisis in 2022 and had to borrow money from FTX to meet its payback obligations. In exchange, the fund will use illiquid tokens like FTT to secure the loans.
Early in November, after a string of unfavorable reports about the exchange surfaced, the value of the collateral fell and FTX end customers withdrew their money, which caused the “sand castle” of FTX, Alameda, to completely collapse.
The FTX exchange still has up to $9 billion in assets and $9 billion in liabilities, according to later-released information from Sam Bankman-Fried, but 90% of them are extremely illiquid and nearly worthless cryptocurrencies.
According to court documents, FTX and Alameda Research had accrued losses of $3.7 billion in the years leading up to 2022. Additionally, the exchange owes just the 50 largest creditors a total of $3.1 billion.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
Other Posts
Related Posts
News
The Bitcoin Epic Satoshi Of The 4th Halving Was Auctioned For Over $2.1 Million
News
Hong Kong Crypto ETFs Of HashKey And Bosera Completed Subscription To Launch On April 30
News
