• FTX did not have its bank account after its launch- reports. 

The Failure of the FTX Exchange has given birth to hundreds of unanswered questions, and more than one million users lost their life savings and are seeking an appropriate answer from Sam Bankman Fried. 

Recently Sam noted that he does not know how users’ funds were misused at Alameda Research. 

According to the Wall Street Journal, Bankman, the founder of FTX, said he had no idea how Alameda Research worked despite owning 90% of the company. He disclosed that he had very few insights into how the Alameda Research was working. 

Were FTX Customers Depositing Their Savings in Accounts Controlled By Alameda 

As per WSJ, the early depositors of FTX deposited their funds in the bank account of Alameda Research, as in the early phase, FTX did not have a bank account. Sam Notes that FTX customers deposited approximately $5 billion in these accounts operated by Alameda Research.

Sam Bankman quoted that “They were wired to Alameda and…I can only speculate about what happened after that. Dollars are fungible with each other. And so it’s not like there’s this $1 bill over here that you can trace through from start to finish. What you get is more just omnibus, you know, pots of assets of various forms.” 

Does the Internal System of FTX was Flawed 

Sam Bankman Fried said the internal system of the crypto exchange was Flawed. For this reason, they could not monitor the trade of Alameda As per Sam was quite busy working at FTX and several other affiliated projects. He couldn’t monitor the Alameda operations. 

According to some reliable reports, FTX did not have an accounts department. Although some reports also state that Caroline Ellison, Chief Executive Officer was in a serious relationship with Sam Bankman.   

Earlier, a media outlet reported and confirmed that SBF and his close employees working in the firm lived in the same penthouse and had a romantic relationship. 

Is Sam Bankman Fried Losing the Credibility, Double Standard? 

In an interview with Financial Times, Sam Bankman Fried quoted that Alameda was specially treated by FTX, allowing it to trade above limits and borrow from the exchanges. 

Brian Armstrong wrote on his Twitter handle, “I don’t care how messy your accounting is (or how rich you are) – you’re definitely going to notice if you find an extra $8B to spend.” 

Source: https://www.thecoinrepublic.com/2022/12/05/ftx-customers-deposited-approximately-5b-into-alameda-account-sbf/