Alameda owes FTX about $10 billion - report

The idea that Sam Bankman-Fried was some sort of MIT trading savant is coming undone.

The WSJ now reports that FTX lent billions of dollars worth of customer assets to fund risky bets at Alameda, his trading firm. Now Alameda owes FTX about $10 billion.

That makes it likely that Alameda is now unwinding positions in order to fund the shortfall to FTX. However some of those bets may have been in FTX Token, which has declined 90%.

Bankman-Fried described the move to lend customer deposits to an investor as "a poor judgment call" but it's likely illegal.

The person also says FTX had $16 billion in customer assets. It was hit with $5 billion of withdrawals on Sunday alone, Bankman-Fried reported.

Bankman-Fried also tweeted this week that “FTX has enough to cover all client holdings. We don’t invest client assets (even in treasuries).” He later deleted the tweet.

A separate report from Axios reports that FTX has approached Kraken as a potential rescue partner.

Bitcoin Bitcoin Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Read this Term is trading up 11% today to $17,478 on hopes that customer deposits can be protected.