Alameda Research Crypto Hedge Fund At the center of the collapse was ex-CEO Sam Bankman-Fried and FTX had a “secret exemption” from the FTX exchange’s liquidation process, according to Thursday’s bankruptcy filing.
inrevealThe court filing, although details are not provided. But it indicates that Alameda has an advantage when trading risky leverage on FTX. automatic to place bets
FTX’s new CEO, John J. Ray III, cites “Alameda secrecy from certain aspects of FTX’s automated liquidation protocols,” which in a list of security and poor financial controls has been exposed since. he took control In the early hours of November 11, shortly before the company filed for bankruptcy in US courts.
The line between Alameda and FTX are two separate businesses. CoinDesk revealed that Alameda’s balance sheet was crammed with FTX-issued tokens, leading to questions about the company’s financial condition. and eventually became bankrupt
The allegations are part of a poor management practice. Ray, previously responsible for managing the mess left behind by Enron, said FTX was the worst failure of internal control and record-keeping he had seen in his 40-year career.
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