Alameda, FTX executives knew crypto exchange was using customer funds – WSJ

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FILE PHOTO: Illustration shows FTX logo, stock graph and representation of cryptocurrencies

(Reuters) – FTX-affiliated crypto trading firm Alameda Research’s Chief Executive Officer Caroline Ellison and senior FTX officials knew that the crypto exchange had lent Alameda its customer funds to help meet liabilities, the Wall Street Journal reported on Saturday.

Reuters reported Friday that FTX founder and former CEO Sam Bankman-Fried had secretly transferred $10 billion of customer funds from FTX to Alameda.

Ellison told employees in a video meeting on Wednesday that she, Bankman-Fried, and two other executives, Nishad Singh and Gary Wang were aware of the decision to move customer funds to Alameda, the Journal said, citing people familiar with the matter.

FTX filed for U.S. bankruptcy protection early Friday and Bankman-Fried resigned as chief executive.

FTX and Alameda Research did not immediately respond to Reuters’ requests for comment.

(Reporting by Kanjyik Ghosh in Bengaluru; editing by Diane Craft)

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