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> If that Coindesk article never was released Alameda could've eventually paid back the loan to FTX and no one on the outside would've been the wiser. I don't
by mudrockbestgirl 4y ago
> If that Coindesk article never was released Alameda could've eventually paid back the loan to FTX and no one on the outside would've been the wiser.
I don't know about that, the loans were huge. Billions of dollars. It's extremely unlikely that a (unprofitable) hedge fund can turn around its business and make that money back in a short time frame. Not impossible, but very unlikely. It must've been obvious to the insiders that the probability they'll get away with this is very low. Hard to believe they'd gamble their lives on that small chance.
I'm wondering how exactly Alameda managed to be so unprofitable. They literally had the easiest trading job in the world: Market make on their own exchange while seeing all order flow and being able to front-run anyone they want.
- bhouston 4y agoI think everyone else thought this too: > I'm wondering how exactly Alameda managed to be so unprofitable. They literally had the easiest trading job in the world: Market make on their own exchange while seeing all order flow and being able to front-run anyone they want. This is why FTX imploding was a surprise. We thought they were profiting from their own order flow. No need for a true scam.