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Sam Bankman-Fried’s trading firm, Alameda Research, allegedly traded billions of dollars from FTX customers’ accounts and leveraged the crypto exchange’s native token as collateral.
CNBC reports that a source claims the quant trading firm Sam Bankman-Fried founded, Alameda Research, used customer deposit from his exchange FTX in a way that went unnoticed by investors, employees, and auditors. The source claims that Alameda Research used billions of dollars from FTX users without their knowledge.
According to the source, FTX grossly miscalculated how much of its tokens it needed on hand if users wanted to cash out. When trading platforms are regulated, they are required to hold enough money to match what customers deposit. According to the source, FTX did not have nearly enough money on hand.
