Senior executives at fallen crypto exchange FTX and affiliated trading firm Alameda Research reportedly had knowledge about the former lending customer funds to support the latter.
Revelations about FTX continue to emerge rapidly with the latest report that its senior executives had knowledge about lending customer funds to support affiliated trading unit Alameda Research, also founded and owned by Sam Bankman-Fried.
According to a «Wall Street Journal» report over the weekend citing unnamed sources, Alameda chief executive Caroline Ellison said she, Bankman-Fried and two other FTX executives were aware of the decision to send customer funds to Alameda. The two executives are Nishad Singh, director of engineering and Gary Wang, chief technology officer as well as FTX co-founder.
Separately, the report noted that the funds were used as loans to support illiquid venture investments.
Swift Downfall
In a matter of just days, FTX has experienced a swift downfall from being a multi-billion dollar crypto exchange to complete collapse.
Last Wednesday, Binance announced the signing of a non-binding agreement to acquire FTX before pulling out one day later on Thursday. And on Friday, FTX filed for US bankruptcy protection and Bankman-Fried resigned as CEO.
