FTX execs blew through $8B — testimony reveals how::Sam Bankman-Fried and other FTX executives spent $8 billion worth of customer funds on real estate, venture capital investments, campaign donations,

  • cyd@lemmy.world
    link
    fedilink
    English
    arrow-up
    4
    ·
    1 year ago

    It’s still a bit hazy how Alameda lost so much money. Normally when hedge funds blow up, there are some identifiable bad trades that take down the rest of the fund. We still haven’t been told that story in the Alameda/FTX case.

    • cricket97@lemmy.world
      link
      fedilink
      English
      arrow-up
      2
      ·
      1 year ago

      They offered financial products like perps that can get particularly rekt as a facilitator. pretty sure they lost billions on bad risk parameters. it was well known that you could make money on ftx unlike any other exchange. some people thought it was because thats where the activity was but it’s come to light that its much ddeper than that.