FTX reportedly used $10 billion of customer funds to prop up its owner’s trading firm

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Alameda reportedly owes the exchange $10 billion.

article that called Alameda’s balance sheet into question by saying that much of it was made up of FTT, the exchange’s token. That turned into a real problem when Binance founder Changpeng Zhao announced plans to sell the billions of FTT it held, which sent the value of the cryptocurrency into an unrecoverable tailspin. FTX has since struggled to stay afloat, with its customers trying to withdraw funds amid fears over just this kind of risky financial arrangement between FTX and Alameda.

have seen some successful withdrawals processed by FTX on Thursday, but who has been able to extract funds and why is still unclear.Both Alameda and FTX are controlled by Sam Bankman-Fried, who, saying that he “fucked up, and should have done better.” And while he didn’t directly address whether Alameda had been using FTX customer funds, he did say that the firm is “winding down trading” and claimed it isn’t “doing any of the weird things that I see on Twitter.

The future for FTX is up in the air at this point, though things aren’t looking great. The largest crypto exchange, Binance,

 

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Source: CoinDesk - 🏆 291. / 63 Read more »