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>possibly fraudulent They used user funds to cover their losses. There is no possibility where this isn't fraudulent. Also how did they even lose so much in t

• lmm 4y ago
  > Also how did they even lose so much in the first place? That one's easy, they bought a bunch of tokens that turned out to be worthless. (E.g. allegedly they were buying Luna the whole way down).
• gruez 4y ago
  >There is no possibility where this isn't fraudulent. It's called being conservative in your statements. >Also how did they even lose so much in the first place? Bad investments >Meanwhile, at a meeting with Alameda employees on Wednesday, Ms. Ellison explained what had caused the collapse, according to a person familiar with the matter. Her voice shaking, she apologized, saying she had let the group down. Over recent months, she said, Alameda had taken out loans and used the money to make venture capital investments, among other expenditures. >Around the time the crypto market crashed this spring, Ms. Ellison explained, lenders moved to recall those loans, the person familiar with the meeting said. But the funds that Alameda had spent were no longer easily available, so the company used FTX customer funds to make the payments https://www.nytimes.com/2022/11/14/technology/ftx-sam-bankman-fried-crypto-bankruptcy.html https://www.nytimes.com/2022/11/14/technology/ftx-sam-bankma...