FTX the exchange appear to have lent client funds to Alameda research. The loans had very poor collateral behind them, meaning that FTX were exposed. It is no

FTX the exchange appear to have lent client funds to Alameda research. The loans had very poor collateral behind them, meaning that FTX were exposed. It is not currently clear if or how Alameda lost the $billions of client assets, or if they are just illiquid. There is noise that the client assets were spent on things like the summer bailouts of defunct crypto firms, but I think we are just speculating at that point.