Jump Trading, a quantitative buying and selling agency based in Chicago, faced significant losses exceeding $200 million as a result of chapter of FTX, a cryptocurrency derivatives alternate. This revelation is unveiled in Michael Lewis’ newest e book titled “Going Infinite,” which pulls insights from confidential documentation obtained by Constance Wang, the previous chief working officer of FTX.
The 50 Biggest Losers
Lewis reported that FTX, owing $8.7 billion to over 10 million account holders, had virtually half of the quantity concentrated in its prime 50 accounts. Surprisingly, roughly half of these accounts remained nameless. One notable account, referred to as “Tai Mo Shan Limited” and affiliated with Jump Trading, suffered losses exceeding $75 million.
Another account, named Virtu Financial Singapore, recorded losses of greater than $10 million. Lewis additionally disclosed that most of these unidentified accounts belonged to FTX workers. Notably, Wang herself experienced vital private losses in the course of the collapse, leaving her with solely $80,000 in a separate checking account after dropping approximately $25 million.
As the pinnacle of the sales staff at FTX, Wang was aware of complaints from high-frequency merchants who suspected an in depth relationship between FTX and Alameda Research – a crypto buying and selling agency founded by Sam Bankman-Fried, CEO of FTX.
Read additionally: Sam Bankman-Fried Explains FTX-Alameda Relationship
The Mysterious Balance Sheet
The document that captured Wang’s consideration was the latest stability sheet of Alameda Research, which contrasted sharply with earlier variations.
“When I saw it, I told my team not to respond to external parties because I did not want them to lose their good name and reputation,” she stated.
The document revealed that Bankman-Fried had personally invested an impressive sum of $4.7 billion in numerous initiatives. However, additionally disclosed a troubling reality: he had borrowed over $10 billion from FTX prospects’ deposits and allotted them to his personal buying and selling fund.
A extremely anticipated e book referred to as “Going Infinite” was launched on October third and has already created a major buzz throughout the crypto group. This fascinating readvert uncovers some of the infamous scandals in cryptocurrency historical past, illuminating the business’s darkish underbelly.
The offered content material could embody the non-public opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty on your private monetary loss.
