Thursday, December 1, 2022
HomeDigit NewsFTX crypto exchange lost $1 billion in customer funds

FTX crypto exchange lost $1 billion in customer funds

In the past few months, many exchanges and firms in the crypto segment have suffered huge losses due to losses. Customers of crypto exchange FTX may also suffer similar losses. This exchange is on the verge of bankruptcy. People with knowledge of this matter say that it has misappropriated at least one billion dollars of customers’ funds.

of Reuters Report According to reports, FTX founder Sam Bankman Fried secretly transferred approximately $10 billion of customers’ money to his trading firm, Alameda Research. A large part of this fund has disappeared. A source said the missing fund was worth around $1.7 billion. Another source said it was between $1 and 2 billion. The glitch came to light last week after Sam showed the records to other senior executives. Both these sources were senior executives at FTX and were briefed by its management about the company’s financial position.

The Bahamas-based exchange filed for bankruptcy earlier this week after a large number of customers withdrew their funds. Binance, one of the major crypto exchanges, had taken the initiative to buy it but later backed down. Largest cryptocurrency by market capitalization after FTX reported bankrupt bitcoin Including there was a big drop in the crypto market. Apart from this, the shares of some firms related to this segment were also sold.

In this regard, Sam told Reuters via text message that he did not agree with the mess over the transfer of $10 billion of funds. He said that this fund was not transferred secretly. FTX and Alameda Research did not respond to queries sent to them. The trouble for FTX, one of the major crypto exchanges, was triggered by the huge loss suffered by Alameda Research. Most of the executives of the exchange were not aware of this.

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