Former CEO of crypto exchange FTX, Sam Bankman-Fried, was reportedly concerned about various issues leading up to the collapse of the exchange. According to former Alameda Research CEO Caroline Ellison’s personal notes, Bankman-Fried was worried about Alameda’s performance, investing in Snapchat, raising capital from Saudi royalty, and pressuring regulators to crack down on rival exchange Binance. The crash of the Terra ecosystem in May 2022 was significant enough for Bankman-Fried to consider shutting down Alameda and seeking $1 billion in capital from a Saudi Prince known for his investments in blockchain gaming. Bankman-Fried also sought additional funds from crypto lender BlockFi and had concerns about trading Japanese government bonds and buying Snap Inc stocks. Ellison mentioned that Bankman-Fried blamed her for Alameda’s troubles and poor hedging. She admitted that a better hedge strategy could have helped, but also highlighted the company’s large open-term loans and spending from its line of credit with FTX. Lenders began enforcing their call option, requiring Alameda to repay millions of dollars. Under Bankman-Fried’s direction, Ellison repaid part of the debts with funds from FTX customers. Ellison also created “alternative” spreadsheets to hide financial liabilities with FTX from lenders. She expressed anxiety about customers withdrawing funds from FTX amid a liquidity crisis at Alameda. Ellison’s cross-examination by Bankman-Fried’s defense is set to begin on October 12th.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇸🇦 🇯🇵 |
| Sentiment | neutral |
| Relevance Score | 0 |
| People | William MacAskill, Caroline Ellison, Sam Bankman-Fried |
| Companies | FTX, BlockFi, Binance, Snap Inc (SNAP), Alameda Research |
| Currencies | BUSD, Bitcoin, Terra Luna Classic, FintruX |
| Securities | Japanese government bonds, SNAP |
