SBF Used FTX Customer Funds to Prop Up Failing Hedge Fund Alameda
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SBF misused customer funds from FTX to prop up his hedge fund Alameda Research, which lost money consistently.
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Alameda lost millions through sloppy accounting, poor controls, and risky trades, including a $1 billion loss on MobileCoin.
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SBF invested billions of Alameda funds into startups, mining facilities, and other projects near market peaks in 2021.
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SBF innovated a pump-and-dump scheme involving buying up supply of tokens tied to his brand before listing them on FTX.
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SBF's massive FTT holdings at Alameda cast doubt on its solvency and ultimately brought down the FTX empire.