Alameda, FTX executives knew crypto exchange was using customer funds

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Alameda, FTX executives knew crypto exchange was using customer funds - WSJ

Stock Markets Nov 12, 2022 11:25AM ET

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Alameda, FTX executives knew crypto exchange was using customer funds - WSJ

© Reuters. FILE PHOTO: Representations of cryptocurrencies are seen in front of displayed FTX logo and decreasing stock graph in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) - FTX-affiliated crypto trading firm Alameda Research's Chief Executive Officer Caroline Ellison and senior FTX officials knew that the crypto exchange had lent Alameda its customer funds to help meet liabilities, the Wall Street Journal reported on Saturday.

Reuters reported Friday that FTX founder and former CEO Sam Bankman-Fried had secretly transferred $10 billion of customer funds from FTX to Alameda.

Ellison told employees in a video meeting on Wednesday that she, Bankman-Fried, and two other executives, Nishad Singh and Gary Wang were aware of the decision to move customer funds to Alameda, the Journal said, citing people familiar with the matter.

FTX filed for U.S. bankruptcy protection early Friday and Bankman-Fried resigned as chief executive.

FTX and Alameda Research did not immediately respond to Reuters' requests for comment.

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Comments (1)

jason xx Nov 13, 2022 11:35AM ET

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So everyone who had money on this exchange just losses it?

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