FTX lent Alameda billions of dollars in customer assets: WSJ

Quick Take

  • FTX CEO Sam Bankman-Fried told an investor that sister company Alameda Research owes the exchange about $10 billion, according to The Wall Street Journal.
  • FTX had $16 billion in customer assets, per WSJ.

Crypto exchange FTX lent about $10 billion to sister company and trading firm Alameda Research, according to The Wall Street Journal.

The report, citing a conversation with CEO Sam Bankman-Fried and an investor, said FTX had more than $16 billion in customer assets.

Earlier Thursday, Reuters reported that FTX transferred at least $4 billion to Alameda. Bankman-Fried didn’t inform other executives about the transfer of funds to Alameda, Reuters also said.

Alameda is now shutting down, according to a tweet thread posted by Bankman-Fried. The CEO also said FTX will be "spending the week doing everything we can to raise liquidity" in order to repay customers. 

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For the last few days, FTX has been the focal point of a financial storm roiling the crypto industry.

Earlier in the week, Changpeng Zhao, the CEO of Binance, said the exchange would begin selling off holdings of FTX's token, FTT. Then, amid a flood of client withdrawals, FTX announced on Tuesday it planned to sell its non-U.S. assets to Binance.

The deal ultimately collapsed after Binance walked away, citing due diligence issues. 

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