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B. G., Opalesque Geneva: As FTX is filing for bankruptcy, investors, including crypto hedge fund Galois, VC firms and about 1.2 million registered users are counting their losses, hackers are moving millions out of the platform, and agencies, the police and lawyers are investigating. Investors should brace themselves for contagion from the bankruptcy, warns a crypto hedge fund manager.
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The crypto exchange platform FTX.com, FTX US, Alameda Research Ltd, and about 130 additional affiliated companies - known as the FTX Group - filed for bankruptcy in Delaware on Friday 11 November 2022. FTX held just $900m in easily sellable assets against $9bn of liabilities the day before it collapsed into bankruptcy, according to investment materials seen by the Financial Times.
Alameda Research is a quantitative trading firm founded in 2017 by Sam Bankman-Fried after he left his job at Jane Street Capital. It specialised in cryptocurrencies and its strategies included arbitrage, market making, yield farming, and trading volatility. In short, Alameda passively borrowed from FTX. This hedge fund largely used the money to buy FTT, the digital token issued by FTX, which supported its price. But the system ...................... To view our full article Click here
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