- The liquidity crunch facing FTX might have been caused by CEO Sam Bankman-Fried secretly transferring at least $4 billion to boost Alameda, including customer deposits.
- Lucas Nuzzi, the head of research & development at CoinMetrics, found evidence of a massive bailout for Alameda in Q2, which may have contributed to FTX’s troubles.
- Bankman-Fried’s decision to save struggling crypto firms during the bear market also played a role in FTX’s downfall.
- Alameda Research suffered losses, including a $500 million loan agreement with collapsed crypto lender Voyager Digital.
- Binance halted its acquisition plans for FTX due to misappropriation of customer funds and reports of alleged U.S. agency investigations.
- Bankman-Fried acknowledged that FTX needed $4 billion to remain solvent and avoid bankruptcy.
- FTX experienced a “giant withdrawal surge” of $6 billion in cryptocurrencies within 72 hours, which compounded their troubles.
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