Sam Bankman-Fried told an investor that sister company Alameda Research owes the exchange about $10 billion
According to The Wall Street Journal, cryptocurrency exchange FTX lent sister company and trading outfit Alameda Research around $10 billion. FTX had customer assets worth more than $16 billion, citing a chat with CEO Sam Bankman-Fried and an investor.
FTX lent Alameda billions of dollars in customer assets
Reuters said FTX transferred at least $4 billion to Alameda on Thursday. According to Reuters, Bankman-Fried failed to alert other officials of the transfer of monies to Alameda.
According to Bankman-tweet Fried’s thread, Alameda is currently closing. To reimburse consumers, the CEO added that FTX will “spend the week doing all we can to raise liquidity.”
FTX has been the center of a financial storm rattling the cryptocurrency sector for the past few days.
The CEO of Binance, Changpeng Zhao, announced earlier in the week that the exchange would start liquidating its holdings of the FTX cryptocurrency, FTT. Then, FTX revealed on Tuesday that it intended to sell Binance its non-U.S. assets during a wave of client withdrawals.
Binance eventually backed out of the agreement, claiming problems with its due diligence.
Read more:
- Sequoia Capital Marked Down The Value Of All Its Investments In FTX To Zero; Who Could Save FTX?
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