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The NYT profiles I've seen is pretty clear that Alameda and FTX were mingling customer funds, that he refused to answer questions about the handling of funds, a

The NYT profiles I've seen is pretty clear that Alameda and FTX were mingling customer funds, that he refused to answer questions about the handling of funds, and that he was under investigation. > But he would offer only limited details about the central questions swirling around him: whether FTX improperly used billions of dollars of customer funds to prop up a trading firm that he also founded, Alameda Research. The Justice Department and the S.E.C. are examining that relationship. > Alameda had accumulated a large “margin position” on FTX, essentially meaning it had borrowed funds from the exchange, Mr. Bankman-Fried said. “It was substantially larger than I had thought it was,” he said. “And in fact the downside risk was very significant.” He said the size of the position was in the billions of dollars but declined to provide further details. > 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. Besides her and Mr. Bankman-Fried, she said, two other people knew about the arrangement: Mr. Singh and Mr. Wang. 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...

listenallyall 4y ago
Perhaps you think you're providing evidence of hard-hitting journalism, but it's the opposite. They are framing premeditated, intentional fraudulent activity as a series of mistakes and oversights. It was substantially larger than I had thought it was -- whoopsie! the funds that Alameda had spent were no longer easily available (and why is that, hmmm?) , so the company used FTX customer funds to make the payment -- didnt want to, just rearranging some furniture!

listenallyall 4y ago

Perhaps you think you're providing evidence of hard-hitting journalism, but it's the opposite. They are framing premeditated, intentional fraudulent activity as a series of mistakes and oversights. It was substantially larger than I had thought it was -- whoopsie! the funds that Alameda had spent were no longer easily available (and why is that, hmmm?) , so the company used FTX customer funds to make the payment -- didnt want to, just rearranging some furniture!