FTX founder Sam Bankman-Fried has transferred at least $4 billion to support sister company Alameda Research, according to Reuters. He did not tell other officials about the money transfer to Alameda because of fears of leaks, Reuters said.
FTX CEO Sam Bankman-Fried moved at least $4 billion in FTX funds to Alameda’s research, including FTT’s stake in the shares of Robinhood, according to Reuters.
The moves came after Alameda, Bankman-Fried’s trading company, suffered losses from transactions in May and June, including a loan deal with Voyager Digital, Reuters said, citing people familiar with the matter. These funds include customer deposits, according to the report.
Bankman-Fried did not tell other FTX executives about the money transfer to Alameda because he feared a leak, Reuters said. Crypto exchange FTX experienced a dramatic fall from grace this week when Changpeng Zhao, CEO of rival Binance, announced that it would begin selling the FTX exchange token, FTT. After seeing a flood of customers withdraw, FTX announced on Tuesday that it will sell its non-US assets to Binance. The deal ended on Wednesday when Binance withdrew.
FTX tries everything to save Alameda
After that, FTX is also looking to raise money, according to a Slack message that Bankman-Fried shared with employees on Thursday seen by The Block.
Reuters also provided details on the past financial transactions of the two exchanges. In 2019, Zhao bought 20% in FTX for about $100 million. After their relationship soured, Bankman-Fried bought the plant for about $2 billion in July 2021, according to reports. Spokespeople for FTX and Binance did not immediately respond to The Block’s request for comment. Reuters said the changes did not respond to requests for comment. FTX tries everything to save Alameda