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Home » FTX Founder Transferred At Least $4 Billion To Prop Up Sister Company Alameda Research

FTX Founder Transferred At Least $4 Billion To Prop Up Sister Company Alameda Research

  • Crypto
FTX
FTX

FTX chief Sam Bankman-Fried transferred at least $4 billion in FTX funds to Alameda Research, including native token FTT and shares in Robinhood, according to Reuters.

The transfers were made after Alameda, Bankman-Fried’s trading firm, suffered losses from deals in May and June, including a loan agreement with Voyager Digital, Reuters said, citing people close to the subject. These funds included customer deposits, according to the report.

Bankman-Fried didn’t inform other FTX executives about the transfer of funds to Alameda because he was afraid of leaks, Reuters said.

Crypto exchange FTX has suffered a spectacular fall from grace this week after Changpeng Zhao, the CEO of larger rival Binance, said he would begin selling off holdings of FTX’s exchange token, FTT. After seeing a flood of client withdrawals, FTX announced on Tuesday it would sell its non-U.S. assets to Binance. That deal then fell apart on Wednesday after Binance walked away.

After all this, FTX is once again looking to raise money, according to a Slack message shared by Bankman-Fried to his staff on Thursday seen by The Block.

Reuters also gave details on the two exchanges’ past financial dealings. In 2019, Zhao bought a 20% stake in FTX for about $100 million. After their relationship soured, Bankman-Fried bought back the stake for about $2 billion in July 2021, according to the report.

A spokesperson for FTX declined to comment, saying “what has been posted on Twitter are the only official comments FTX will be making at this time.” Binance didn’t immediately respond to a request for comment from The Block.

Reuters said the exchanges didn’t respond to its requests for comment.

The article originally published on The Block.